Nestled on the beautiful coastline of Long Island, the North Shore is a picturesque region that is rapidly becoming one of the most sought-after areas to live in New York. With its scenic beaches, vibrant town centers, and easy access to Manhattan, it's no wonder that so many are opting to relocate there. For those interested in buying or selling North Shore real estate, what can you expect from the local market in 2023? In this guide, you’ll find the latest North Shore real estate trends alongside insights into what to expect as you step onto the scene.
The market
The North Shore market has been a hot topic among buyers and sellers in recent years, with demand for properties continually outstripping supply. According to recent market reports, however, price decreases across the North Shore are helping move the market from a seller’s market to a more balanced state, with inventory rising to meet demand.
In certain parts of the North Shore, inventory remains lower than demand, driving up competition for new homes that become available. Homes below $1,000,000 aren’t on the market for long, keeping many buyers on their toes as they search for the perfect property. Some predictions for 2023 point to rising interest rates as a potential deterrent for buyers, and that shift could lead to lower prices, especially in the off-season.
For buyers, this could be an opportunity to enter the market as pricing cools down. However, it's important to act quickly and partner with the right real estate professional, as seasonal shifts in the market could lead to increased competition among buyers. For sellers, a potential cooling of the market means that it may take longer to sell. It’s imperative to price a property competitively to attract the highest number of buyers.
Price trends
Overall, the median home price in the North Shore has been on an upward trend in recent years. However, as of January, year-over-year median prices were lower, and homes have been staying on the market longer. Many professionals expect that median home prices in the North Shore will continue to increase in 2023, but it all depends on how interest rates and demand fluctuate. With sustained demand for properties and limited inventory, median prices will climb again. But if interest rates do continue to drive down demand, homeowners will have to adjust and lower their prices.
In comparison, the North Shore luxury real estate market has experienced more of a buyer’s market in the past year, with homes listed at $1,800,000 selling closer to $1,500,000. As the year goes on, the luxury home market may experience continued dips in pricing due to increased inventory of luxury properties on the market and lower demand. This is good news, however, for buyers interested in owning luxury North Shore, NY beach houses.
Number of homes on the market
The North Shore Long Island real estate market has been characterized by low inventory in recent years, with more buyers competing for a limited number of properties. However, the supply-demand balance could potentially shift in 2023, with indications that there could be more homes on the market.
Several factors could contribute to this shift, including rising interest rates, a potential slowdown in the economy, and an increase in new home construction. Homeowners who were on the fence about selling in the wake of the pandemic may decide to take the leap in 2023. If more homes do come on the market, this would give buyers more options to choose from and potentially lead to less competition for properties.
New construction
There are several new construction projects planned for the North Shore, including both residential and commercial luxury developments. The Glen Cove waterfront has seen a number of new condominiums pop up, including those at Breton Hills. Oyster Bay has seen stunning new homes built in recent years as well, with rumors of further luxury properties coming onto the scene across the North Shore in 2023.
While there are certainly new construction projects in the works, there are also limitations when it comes to lot availability for new constructions. This is particularly true in more established neighborhoods, where available land for new developments is scarce. As a result, buyers may need to be prepared to consider less established areas or work with developers who have access to unique opportunities in the market. Buyers and developers will need to navigate local zoning regulations and building codes to ensure that any new construction projects are in compliance with local laws.
Mortgage interest rates
Mortgage rates play a significant role in any real estate market by impacting a buyer's purchasing power and monthly mortgage payments. While it is impossible to predict the future direction of mortgage rates with certainty, there are several factors that could impact rates in the coming year.
Mortgage rates in New York are hovering around 6.84% for a 30-year, fixed-rate loan, but aren’t expected to climb significantly in 2023. Though it isn’t likely that rates will lower considerably, buyers and sellers can expect lower jumps in rates throughout 2023.
To navigate changing mortgage rate conditions, buyers should work closely with a lender they trust who can provide guidance on financing options and help them secure the best possible rate. Buyers should be prepared to be flexible in their home search, and sellers should stay up-to-date and aware of how rising mortgage rates could impact the number of offers they receive on their homes.
Do you plan to buy or sell North Shore homes in the upcoming year? If so, get in touch with experienced local agent Maggie Keats for expert guidance during the entire process.
