Home prices in Nassau and Suffolk counties reached new highs in September. But there are a dwindling number of deals happening as surging mortgage rates discourage homeowners from putting their homes on the market.
The median sale price in Nassau County last month was $735,000, or 5.2% higher than the median sale in September 2022. In Suffolk, the median rose 8.2% to $595,000 last month, according to new data from OneKey MLS.
The previous record prices, set in August, were $727,500 in Nassau and $590,000 in Suffolk. The Nassau median for August was revised downward this month by OneKey MLS, reflecting sales that weren’t included in its initial report.
A persistent shortage of homes on the market has driven up prices, said Richard Haggerty, CEO of OneKey MLS. There were 5,127 listings at the end of last month, which was 24% lower than at the close of September 2022.
“It’s strictly a product of low inventory,” Haggerty said of the record prices.
Home prices have risen even as the average long-term U.S. mortgage rate reached its highest point since December 2000 this week. The average rate for a 30-year fixed mortgage was 7.57%, according to Freddie Mac, up from 7.49% last week. Last year at this time, the average was 6.92%. As recently as January 2022, rates were about 3%.
Zahra Jafri, founder and president of Lynx Mortgage Bank in Westbury, said there hasn’t been a drop off in inquiries from potential homeowners but higher rates mean borrowers can’t afford to buy as expensive a home as they could a few years ago. She sees the slowdown in sales as tied to the scarcity of homes. Until people have a better handle on the stability of mortgage rates, they will put off making a big move.
“Rates cannot continue to be so volatile,” she said. “We need the stability for people to make decisions.”
Homeowners that bought or refinanced when rates were below 5% have little financial motivation to sell, and when they do browse homes, there’s a…
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