As we turn the page on a new year, we’re asking for some predictions for 2024. What’s ahead for the real estate market on Long Island? We asked some of the top agents to tell us some of the most important things buyers and sellers should be aware of this year.
Molly Deegan
BRANCH REAL ESTATE
SEA CLIFF
“Happy New Year! With interest rates starting to come down based on positive inflation news I see the market significantly improving in 2024. Depending on circumstances, there will always be people who must buy or sell, but with improved market conditions it will make the process a bit less scary. With pre-pandemic rates being the exception, interest rates have historically hovered between 7-8%. Seeing recent mortgage rates in the 6% range is encouraging news for the New Year! I always advise buyers to thoroughly educate themselves on their financing options as there are many opportunities available that can work within all sorts of parameters given their lifestyle and/or financial history. According to Inman, the demand for purchase loans has picked up in recent weeks as mortgage rates continue to drop from the October highs based upon the expectation of federal rate cuts. As for sellers, the demand is there and buyers are out in droves. In most market years the real estate market has generally slowed down a bit during the Winter, but low inventory and dropping rates may just make this this the right time to list your home! As we turn the page on a new year, we’re asking for some predictions for 2024. What’s ahead for the real estate market on Long Island? We asked some of the top agents to tell us some of the most important things buyers and sellers should be aware of this year.”
Jack Pearson
CEEJACK TEAM, COMPASS
SAG HARBOR
“As we emerge from a challenging yearend of Hamptons real estate, 2024 provides pockets of opportunities. As pricing moderates across the board and interest rates continue to decrease, providing better pricing and financing for the paused customer, thereby sparking transactions. This window should widely open even more toward late spring and into summer creating a pent up business bloom, particularly if the Fed begins to reduce bank rates. And by the end of the year, a 6% mortgage interest rate should cap a real estate recovery, mounting an even better year in 2025, heading for a new normal rate of 5%.”
Dawn Costello
DOUGLAS ELLIMAN
SEA CLIFF
“My 2024 housing market predictions for Long Island include, 1) Increased Demand. As interest rates continue to decline, housing affordability will improve, resulting in a surge of buyers. Who can blame them? Our beautiful beaches, vibrant communities, and proximity to New York City make it a great place to live. And don’t forget about our pizza and bagels! 2) Uptick in Inventory: With lower interest rates, we anticipate a bustling spring selling season as homeowners previously hesitant about losing their existing low-rate mortgages decide to make the jump and sell. 3) Focus on Commuting-Friendly Locations: A recent Wall Street Journal survey of CEOs revealed that nearly two-thirds expect a full five-day-a-week return to the office by 2026. Buyers will seek properties near convenient train lines or highways for easier commuting. 4) Increased Interest in Investment Opportunities: Real estate will remain attractive for savvy investors amid market volatility and global uncertainties. Additionally, as Baby Boomers retire, there will be a growing interest in securing passive income streams through real estate investments. 5) Demand for homes geared to aging-in-place: Single-story homes, condos with minimal maintenance, and homes with wide doorways and other adaptations for aging-in-place are highly attractive.”
Nikola (Niko) Cejic
DOUGLAS ELLIMAN
EAST HAMPTON
As we approach the upcoming election year, historical trends indicate a prevailing calm in the real estate sector. As far as market activity goes, November came in like a lamb but went out like a lion. Inventory is critically low and prices remain strong up to $2 million, as we lack affordability. My team has been doing a lot of deals under the radar recently. World events are keeping people closer to home, and uncertainty is compelling people to return to comfortable habits. I also believe that we will see a strong rental market in 2024, because people have reduced flexibility in work schedules and are more likely to be required to be physically present on Monday morning. Working remotely from Mykonos is a thing of the past for many, and everyone knows that 99 miles away from the capital of the world, the Hamptons is the summer place to be. To the buyers who have waited since COVID — 2024 is your year to get something good with less competition, particularly if you can spend over $2 million. Under that number, steel yourself for bidding wars. It might be tough to hear, but Hampton prices are here to stay!
Lisa Kasparian
DOUGLAS ELLIMAN
PORT WASHINGTON
“My prediction for the 2024 real estate market begins with a continued decrease in interest rates setting the pace for a very busy year. There will be an increase in the inventory of homes for sale as sellers will be able to purchase with a more favorable interest rate. Buyers who have been searching and those who were outpriced once interest rates climbed will now flood the market driving up demand. If there is enough inventory home prices should remain stable, but if inventory remains low we will see the return of long lines at open houses and bidding wars. Buyers, be prepared with a mortgage pre-approval and/or proof of funds. Sellers, begin with decluttering, making repairs and painting if necessary. Inventory of homes for sale is at a 40-year low, the sooner you enter this market the easier it will be to sell with less competition. The most important thing is to listen to a trusted real estate advisor when pricing. I look forward to procuring a profitable sale for my sellers and to serving the many potential buyers who were left out of the joys of home ownership these past few years.”
Abigail Mago
FIRE ISLAND SALES AND RENTALS
“Going into 2024, I remain bullish on the Fire Island market. We have been starved for inventory since COVID hit, and we are finally seeing that ease up a little bit. After having been in an extreme seller’s market for so long, the tide is shifting to be more balanced. That’s been a big positive for buyers in terms of being able to find a match for what they’re looking for, but we’ve not really seen downward price pressure in a significant way like many other markets have. With the expected interest rate cuts coming in 2024, I think a lot of buyers who have been watching and waiting on the sidelines, will come out in full force for the spring selling season, potentially causing prices to resume rising again. I think buyers who purchase early in the year will secure better pricing than those who wait until spring or summer when competition is likely to be higher.”
This article appeared in the January 2024 issue of Behind The Hedges Powered By the Long Island Press. Read the full digital edition. For more 2024 predictions from our Hamptons edition, click here. For more on Long Island real estate on Behind The Hedges, click here.
