Bidding wars spur prices in Long Island’s suburbs and summer communities to record highs. Listings plummet.
High Demand Drives All-Time Price Highs in Long Island
During Q2 2021 Suffolk and Nassau counties, excluding the Hamptons and North Fork, 46% of all homes sold were sold above their respective asking prices, according to the Douglass Elliman quarterly report.
In Long Island as a whole, the median price was $555,000, an increase of 18% y/y. Sales volume was up +50% y/y and sales pace was the fastest, 60 days for deals to close, ever recorded in 19 years of tracking.
North Fork saw its median sale price jump up +18% y/y to $790,000. Bidding wars during Q2 2021 occurred in 35% of all North Fork Home sales, the second-highest number of bidding wars in any quarter in five years.
In the Hamptons, 21% of all homes sold were sold above asking prices. Overall, home prices in the Hamptons increased +30% y/y to a median price of $1.4M
Jonathan Miller, president of Miller Samuel Appraisers and author of the Elliman report, said, “In the last year there’s been a rapid ascent in prices driven by heavy sales volume and a sharp decline in inventory.”
Listings Crash
Listings in both the Hamptons and North Fork nose-dived to the third lowest the areas have ever experienced. In North Fork, listings dropped -42% y/y. It’s estimated that it would take 2.7 months to sell the remaining 155 listings at the current rate of sales, or 53% faster than last year.
In the Hamptons, only 1,081 listings remain, a plunge of -33% since the pandemic lockdown and the largest annual decrease seen in this area in 14 years. Sales volume in the Hamptons during Q2 jumped +60% y/y. Of those sales, 55% represented sales of home priced more than $1M. It’s believed it would take just 4.8 months to sell these remaining listings, the quickest sales pace since 2006.
Thanks to The Real Deal.
