Real Estate Market Report: November 2017
For the fourth straight month in a row, home prices in Staten Island have continued to flatten out. Homes are no longer fetching huge gains like they have been over the past two years. Investors and sellers may have to switch up their approach.
Home Prices and Days On The Market Stall In Tandem With Each Other
November’s average home sale price was $557,050, with prices hovering around $560,000 since August. This is in sharp contrast to the first half of 2017, where we saw a nearly $40,000 increase between January and June. At the beginning of this year, homes were selling for an average of $512,377.
While we are still seeing historic lows for days on the market until sale, this curve seems to be leveling out as well. Staten Island homes took an average of just 67 days to sell, down 12% from 76 days November 2016. However, days on the market have also remained stable for the past 6 months or so.
What Does This Mean For Homeowners?
Homeowners, as it turns out, may be late to the game. With days listed on the market now leveling out along with prices, it appears the fervor over owning a piece of Staten Island real estate is waning.
It is still a great time to sell! This is an important takeaway for homeowners. With prices at historic highs currently, there may not be much opportunity to get a better price for your home in the near future. None of our recent trends are predicting a significant decline in prices.
However, what these numbers do suggest is that buyers (and their lenders) are getting more cautious too. They may not be as eager to snap up Staten Island property as they were when the market was surging upward just a few months ago. If prices continue to level out, that sense of urgency is diminished- why buy now when prices are unlikely to climb much further?
Uncertainty Over The General Economy
While still trending upward, Staten Island home prices have been all over the map in the past two years. When we examine peaks and valleys on our home price graph (above), the most stable trend to emerge is the plateau over the last four months.
With the real estate craze hitting a fever pitch over the last few years in New York City, it is understandable that sellers are cautious about moving forward. We simply can’t predict with 100% certainty where prices will go in the next year, or beyond.
Even outside of the real estate sphere, economic uncertainty hurts confidence in our business transactions. This past week, the Dow Jones took a 400-point hit, while the NASDAQ sunk over 300 points. When the people are uneasy about their savings and investments, this usually creates a pullback in the real estate market.
What may be their most expensive purchase of a lifetime is, after all, not something to be rushed. But it is not something to procrastinate on for too long either. Waiting out the market for an extended time could mean a missed opportunity for a great investment.