The real estate market still appears to be resilient and there are no signs of a crash looming on the horizon. Looking at the chart below, the residential median sales price year-over-year increased substantially, from $705,000 to $775,000 (+$70,000) (+9.9%). From September through October, the increase was .00645% ($5000) from $770,000 to $775,000. Although inventory is still meager, and demand is still fairly strong, prices aren’t heading up as they were previously. However, the number of homes sold in October 2023 was 8830 compared to 8199 in October 2024 (approx 7.15% decrease. The combination of higher interest rates, increased prices, and abnormally low inventory were the factors causing the severe decline in sales year-over-year.
| Median Sold Prices
Residential Properties |
|||
| Month | Current Year | Prior Year | % Change |
| Oct-2024 | $775,000 | $705,000 | 9.9 |
| Sep-2024 | $770,000 | $700,000 | 10.0 |
| Aug-2024 | $760,800 | $700,000 | 8.7 |
| Jul-2024 | $750,000 | $695,000 | 7.9 |
| Jun-2024 | $750,000 | $699,000 | 7.3 |
| May-2024 | $740,000 | $700,000 | 5.7 |
| Apr-2024 | $730,000 | $700,000 | 4.3 |
| Mar-2024 | $725,000 | $700,000 | 3.6 |
| Feb-2024 | $725,000 | $700,000 | 3.6 |
| Jan-2024 | $720,000 | $700,000 | 2.9 |
| Dec-2023 | $715,000 | $700,000 | 2.1 |
| Nov-2023 | $710,000 | $699,000 | 1.6 |
Looking at the 2nd chart below for Condos, the median sold price year-over-year rose from $680,000 to $760,000; an increase of $80,000 (+11.8%). The previous month saw a rise of $7,750 (1+%) from $752,250 to $760,000 It’s a possibility that those who found residential prices to be beyond their budget, considered and purchased a condo. Also, the value of condos as an investment could have been a reason for the substantial price increase. There were 705 properties sold in 2023 up to and including October and 706 sold through October 2024; a year-over-year increase of 0.1%. There was a slight decrease from September 2024 from 714 units to 706. Condo inventory is trending lower as there appears to be greater interest in those types of properties.
Median Sold Prices Condo Properties
Month Current Year Prior Year % Change
Oct-2024 $760,000 $680,000 11.8
Sep-2024 $752,250 $670,000 12.3
Aug-2024 $738,000 $654,500 12.8
Jul-2024 $730,000 $670,000 9.0
Jun-2024 $730,000 $660,000 10.6
May-2024 $725,000 $670,000 8.2
Apr-2024 $700,000 $675,000 3.7
Mar-2024 $700,000 $675,000 3.7
Feb-2024 $698,000 $675,000 3.4
Jan-2024 $690,000 $675,000 2.2
Dec-2023 $690,000 $670,000 3.0
Nov-2023 $680,000 $665,000 2.3
The last classification of property is coops. The median sold price of coops in October 2024 was $317,000 compared with $300,000 in October 2023; an increase of 5.7%. However, prices from September 2024 to October 2024 increased by $2000 from $ 315,000 to $317,000. Prices stayed flat at $310,000 from January through June 2024. 793 units sold through October 2024 compared with 814 units through October 2023. Again, the same variables apply here where available inventory was down, prices increased and interest rates became untenable for many would-be purchasers.
Median Sold Prices Co-op Properties
Month Current Year Prior Year % Change
Oct-2024 $317,000 $300,000 5.7
Sep-2024 $315,000 $300,000 5.0
Aug-2024 $313,500 $300,000 4.5
Jul-2024 $312,000 $295,000 5.8
Jun-2024 $310,000 $295,000 5.1
May-2024 $310,000 $295,000 5.1
Apr-2024 $310,000 $295,000 5.1
Mar-2024 $310,000 $295,000 5.1
Feb-2024 $310,000 $290,000 6.9
Jan-2024 $310,000 $290,500 6.7
Dec-2023 $309,000 $290,000 6.6
Nov-2023 $300,000 $290,000 3.4
Prices have increased in the 3 categories year-over-year. However, the increases were greatest for residential homes and condos. Coops showed a much smaller increase year-over-year as that type of property became less affordable for those potentially seeking financing due to interest rates and monthly maintenance fees. Also, due to the coop board approval process, I surmise that many may not have had the acceptable qualifications to pass the review. Debt-to-income ratios also may have played a major role in passing the board. From my experience, when purchasing a home one’s debt-to-income ratio can be as high as 60% for those with the proper income. However, when it comes to coops and their board approval, debt-to-income can range from 27% to 36% so the numbers are much more rigid in getting to the finish line.
Although the Fed rate was reduced again this past month by 25 basis points (1/4 point), I am still not convinced that this will have a major impact on mortgage rates and the housing market and will only lessen the monthly cost of our bloated 36 trillion National Debt. More importantly, I do not believe we are out of the inflation dilemma and I am not sure we will be going forward. If tariffs are put on imported goods from China and other countries, as President-elect Trump is planning then this will only be passed down to increase prices on goods purchased by consumers. I hope that I and most economists are wrong but time will tell.
Statistics courtesy of MLS
I wish everyone a healthy, happy, and enjoyable Thanksgiving holiday with family and friends.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. For a free 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com or via https://WWW.Li-RealEstate.Com
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