Doesn’t everything look amazing in real estate? Long Island has seen median list prices increase to $849,000 a 10.4% increase and median sold price of $716,000, a 10.1% increase. A median sale price per square foot of $453, a 10.2% year-over-year increase.
But is this feeling shared by everyone else who might be struggling to purchase a house, condo, or coop or even just to live comfortably without struggling? Probably not.
As the economy appears to be slowing, people are beginning to pull back. They are going and eating out less and staying home more often. I am sure backyard barbecues are being considered more today than ever before.
The purchasing of cars has slowed, especially since tariffs are at the forefront of people’s minds and psychologically make them think twice about buying new. However, wholesale prices at auctions have increased 4.9%, leading to higher prices in the used car market, where many have been gravitating due to the higher prices of new ones.
Our local economy has been stable, and job growth opportunities are available. However, finding workers and qualified employees is becoming challenging as the cost of living in Long Island continues to exacerbate a growing problem for those trying to find reasonably priced housing for sale or even for rent.
As prices continue to increase and the lack of affordable housing becomes more apparent, more people are considering leaving, and this might be a turning point. There has been a slight increase in people migrating to New York State over the last few years from other countries.
However, this will change as the president just signed a travel ban barring foreign nationals, immigrants and travelers from 12 countries (foreign nationals from seven more nations are restricted) that he deems terrorist locations.
The lifeblood of our economy is partially fueled by immigrants and travelers coming from outbound locations and spending. Time will tell what negative effects this will have on our economy.
Long Island housing prices have obviously benefited tremendously, especially from those who left NYC during the Pandemic to our suburban and quieter environment, especially due to the remote working and hybrid opportunities.
However, today, this allows those who own to cash in and for those who rent, to choose states where the daily living and taxes are less, like South Carolina, Alabama and Arkansas and Texas, where populations are increasing. I have noticed this when I am making calls and ask the individual where they are located. I see a huge uptick in those who live in a completely different state from the corporate office locations.
In United Van Lines’ 48th-year study, they compiled statistics on outbound and inbound traffic. There were 3 major reasons for moving out: to be closer to family (25.6%), retirement (20.8%), and company transfer (15.8%). 49% of migrations were outbound. 1 in 5 moved to Florida.
On the flipside, 41% of inbound moves were for family (32%), changing jobs (27%), and choosing a different lifestyle (14.5%). More importantly, the majority of those moving here had incomes of $150,000 (52.8%), and our highly rated schools were a huge consideration.
So we are attracting those who can afford to live here, and losing the more socio-economically challenged employees and workers, who we so desperately need to fill those available but unfulfilled positions. Go to www.unitedvanlines.com) to see the full study.
There was an assessment of the risks of living on Long Island through 2050. There was an increase in hotter, drier days leading to more wildfires, storm and flood risks, and most importantly, the reduction in portable water due to pollution and saltwater intrusion into our underground aquifers. www.en.m.wikipedia.org and www.libn.org
At some point, prices will decrease by a little or a lot, depending on when buyer demand decreases substantially enough to become a tipping point for affordability.
This occurs when the psychology and mindset begin changing, even for those who could still purchase, noticing price adjustments. Although it will take time, inventory will be able to increase to normal 6-7 month levels, and that will impact prices.
As I mentioned in last week’s column, Baby Boomers are the number one purchasers today (ahead of Millennials, Gen Zs, and Gen X). As we, the majority, pass over the next 10-20 years, many in the other groups will not be able to afford to purchase due to ongoing high student loan and credit card debt.
However, those parents who have enough assets and are able to leave a sizable estate to their heirs will allow those lucky ones to be able to purchase.
However, it is extremely important for the need to be protected financially from being exposed to estate taxes by the IRS. Over 65% of Americans in 2024 didn’t even have the bare minimum of a Will in effect. Financial planning in advance, is of utmost significance and importance.
Do you have a will? If so, has your family situation changed enough that a review and possibly an update or revision could be necessary? If so, stop procrastinating, get off your butt, and do something!
The following are the most critical and crucial documents that those with assets will need: last will and testament, a living will and a living trust, a health care proxy and a power of attorney.
Philip A. Raices Broker Consultant of Turn Key Real Estate,
3 Grace Ave Suite 180 in Great Neck, NY 11021-2415
For a free 15-minute consultation, value analysis of your home, or to answer any of
your questions or concerns, call
(516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com Search properties at your leisure and convenience at:
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