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Nassau County Absorption Rate

I’m sure you’ve heard that there is currently a scarcity of housing inventory virtually everywhere especially on Long Island in both Nassau and Suffolk Counties.  The statistic you possibly are NOT hearing about, however, is that there is a significant increase in activity, with many more homes going into contract than ever before.

So to put it a different way, inventory is DOWN while the pace of sales is UP!  When that happens, something called the “absorption rate” declines quite drastically.  The absorption rate is no more than the number of months to sell ALL the homes on the market. For example, if 100 homes were on the market and 100 homes sold over the past year, that would be a 12 month absorption rate.  If however, 100 homes were on the market and 200 homes sold over the past year, that would be a 6 month absorption rate.

A normal market, that is a market favoring neither the buyer nor the seller holds a 5 to 6 month supply of housing.  An absorption rate higher than 6 months is a “buyer’s market” while lower than 5 is a “seller’s market.”  You can see this quite plainly in the chart just below.

Absorption Rate

With a clearer understanding of what the absorption rate means in housing, I’m sure you can see from the following chart just how strong a seller’s market it is in Nassau County right now for single-family homes!

Chart of housing supply in Nassau County
Nassau County Absorption Rate Feb 2020

What this should mean if you are thinking of selling your Nassau County single-family home: The time to think is over! It is time to act and act swiftly before more sellers discover what you now know.  The absorption rate has never been lower than I can remember in my 21 years as a licensed real estate salesperson. And there’s just no telling how long this seller’s market is going to last.

Call or text me at 516-429-9399 if you would like to know about market conditions and the absorption rate in your town or what your home could bring in today’s market, without any obligation – of course!

Suffolk County Absorption Rate

I’m sure you’ve heard that there is currently a scarcity of housing inventory virtually everywhere especially on Long Island in both Nassau and Suffolk Counties.  The statistic you possibly are NOT hearing about, however, is that there is a significant increase in activity, with many more homes going into contract than ever before.

So to put it a different way, inventory is DOWN while the pace of sales is UP!  When that happens, something called the “absorption rate” declines quite drastically.  The absorption rate is no more than the number of months to sell ALL the homes on the market. For example, if 100 homes were on the market and 100 homes sold over the past year, that would be a 12 month absorption rate.  If however, 100 homes were on the market and 200 homes sold over the past year, that would be a 6 month absorption rate.

A normal market, that is a market favoring neither the buyer nor the seller holds a 5 to 6 month supply of housing.  An absorption rate higher than 6 months is a “buyer’s market” while lower than 5 is a “seller’s market.”  You can see this quite plainly in the chart just below.

Absorption Rate

With a clearer understanding of what the absorption rate means in housing, I’m sure you can see from the following chart just how strong a seller’s market it is in Suffolk County right now for single-family homes!

Suffolk County NY Absorption Rate
Suffolk County NY Absorption Rate Feb 2020

What this should mean if you are thinking of selling your Suffolk County single family home: The time to think is over! It is time to act and act swiftly before more sellers discover what you now know.  The absorption rate has never been lower than I can remember in my 21 years in real estate and there’s just no telling how long this seller’s market is going to last. Call me at 516-429-9399 if you would like to know about market conditions and the absorption rate in your town or what your home could bring in today’s market, without any obligation – of course!

Lindenhurst Home Sold

13 Maple Drive Lindenhurst, NY

4 Bedroom, 2 Bath Cape with 1 car attached garage waiting for you to move in. Newer kitchen with granite counters, SS kitchen appliances, gleaming wood floors. New Bath, Fresh carpeting in upstairs 2 bedrooms. Full Basement with Separate outside entrance and high ceiling waiting to be finished. Move-in ready.

First Showing 12/20/2019

Open House 12/28/2019

Full Contract  1/8/2020

Closed Escrow 2/20/2020

Asked $350,000

12 Offers including winning bid of $392,501.

Wouldn’t you want to see results like this when you sell?

Call or text me at 516-429-9399.

Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey

Three Reasons Why Pre-Approval Is the First Step in the 2020 Homebuying Journey | Simplifying The Market When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval is the first step in the 2020 homebuying journey.

1. Gain a Competitive Advantage

Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.

2. Accelerate the Homebuying Process

Pre-approval can also speed up the homebuying process, so you can move faster when you’re ready to make an offer. In a competitive arena like we have today, being ready to put your best foot forward when the time comes maybe the leg-up you need to cross the finish line first and land the home of your dreams.

3. Know What You Can Borrow and Afford

Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach. Freddie Mac sets out the advantages of pre-approval in the My Home section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
Local real estate professionals also have relationships with lenders who can help you through this process, so partnering with a trusted advisor will be key for that introduction. Once you select a lender, you’ll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.” Freddie Mac also describes the ‘4 Cs’ that help determine the amount you’ll be qualified to borrow:
  1. Capacity: Your current and future ability to make your payments
  2. Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time
While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.

Bottom Line

Getting started with pre-approval is a great way to begin the homebuying journey. Let’s get together today to make sure you’re on the fastest path to homeownership.

3 Mistakes to Avoid When Selling a Home in 2020

3 Mistakes to Avoid When Selling a Home in 2020 | Simplifying The Market It’s exciting to put a house on the market and to think about making new memories in new spaces.  But we can have deep sentimental attachments to the homes we’re leaving behind, too. Growing emotions can help or hinder a sale, depending on how we manage them. When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes. Being mindful of these things and prepared for the process can help you avoid some of the most common mishaps when selling your house.

1. Overpricing Your Home

When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask for when we price our homes. Believe it or not, that’s far from the truth. Don’t forget that the buyer’s bank will send an appraisal to determine the fair value for your home. The bank will not lend more than what the house is worth, so be mindful that you might need to renegotiate the price after the appraisal. A real estate professional will help you to set the true value of your home.

2. Letting Your Emotions Interfere with the Sale

Today, most homeowners have been living in their houses for an average of 10 years (as shown in the graph below):3 Mistakes to Avoid When Selling a Home in 2020 | Simplifying The MarketThis is several years longer than what used to be the norm, since many homeowners have been recouping from negative equity situations over the past 10 years. The side effect, however, is when you live for so long in one place, you may get even more emotionally attached to your space. If it’s the first home you bought after you got married or the house where your children grew up, it very likely means something extra special to you. Every room has memories and it’s hard to detach from the sentimental value. For some homeowners, that makes it even harder to negotiate, separating the emotional value of the home from the fair market price. That’s why you need a real estate professional to help you with the negotiations in the process.

3. Not Staging Your Home

We’re generally quite proud of our décor and how we’ve customized our houses to make them our own personalized homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your home with the buyer in mind. Buyers want to envision themselves in the space, so it truly feels like their own. They need to see themselves in the space with their furniture and keepsakes – not your pictures and decorations. Stage and declutter your home so they can visualize their own dreams as they walk through your house. A real estate professional can help you with tips to get your home ready to stage and sell.

Bottom Line

Today’s seller’s market might be your best chance to make a move. If you’re considering selling your house, let’s get together to help you navigate through the process while avoiding common seller mistakes.

Tips to Sell Your Home Faster

Tips to Sell Your Home Faster | Simplifying The Market When selling your house, there are a few key things you can prioritize to have the greatest impact for a faster sale. The following are some tips to sell your home faster:

1. Make Buyers Feel at Home

Declutter your home! Pack away all personal items like pictures, awards, and sentimental belongings. Make buyers feel like they belong in the house. According to the 2019 Profile of Home Staging by the National Association of Realtors, “83% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.” Not only will your house spend less time on the market, but the same report mentioned that, “One-quarter of buyers’ agents said that staging a home increased the dollar value offered between 1 – 5%, compared to other similar homes on the market that were not staged.”

2. Keep It Organized

Since you took the time to declutter, keep it organized. Before buyers arrive, pick up toys, make the bed, and put away clean dishes. According to the same report, the kitchen is one of the most important rooms to stage in order to attract more buyers. Put out a scented candle or some cookies fresh from the oven. Buyers will remember the smell of your home.

3. Price It Right

More inventory coming into the market guarantees there will be some competition. You want to make sure your home is noticed. A key to selling your house is ensuring it is Priced to Sell Immediately (PTSI). This means you’ll be driving more traffic to your property, and ultimately creating more interest in your home.

4. Give Buyers Full Access

One of the top four elements when selling your home is access. If your home is available anytime, that opens up more opportunity to find a buyer right away. Some buyers, especially those relocating, don’t have much time available. If they cannot get into the house, they will move on to the next one.

Bottom Line

If you want to sell your home in the least amount of time at the best price with as little hassle as possible, give me a call. Let’s connect today to determine what you need to do to sell your home as quickly as possible.