Over the past 4 years US home prices have soared an average of 47%. NY State prices increased 39%, while some states such as Florida, the Carolinas, Idaho and Tennessee saw increases of 60+%. States that saw the largest increases, however, are now experiencing larger price cuts as more Homeowners there are looking to sell (for a variety of reasons).

Price cuts are on the rise nationally. 34.4% of homes on the market have taken a price cut. That’s Up from 29.9% of homes taking price cuts last year at this time. Even though there is a shortage of Homes for sale, buyers are reluctant to undertake the cost of repairing and upgrading older, Unimproved homes. Cash is necessary for these improvements, in addition to a buyer paying for their Loan and closing costs. It is important for sellers to prepare their homes to be in the best condition possible as they go on the market in order to attract today’s buyers – and top dollar.

Mortgage interest rates rose 5/29/24 for the first time in 4 weeks with the 30 year rate up to 7.05%. This led to a decline of 5.7% in mortgage applications heading into Memorial Day weekend. Mortgage Activity was pushed to the lowest level since early March. Borrowers remain sensitive to small Increases in rates and purchase applications are below last year’s levels.

Inventory levels in Queens and Long Island are still below the six-month level (a balanced market) and In favor of sellers at this point. Lack of homes for sale versus demand continues to drive prices higher. Queens has an average of 4.8 months of inventory for sale while Nassau and Suffolk counties show Inventory at 2.3 and 2.2 months respectively.

Sources: – One Key MLS, Inman News 1/2

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