Prodigy Real Estate - SI NY Real Estate Blog - Home Sold Data

Do mortgage rates impact home values? Here's a look at a bit of history showing there can be.

Home values have historically been significantly impacted by mortgage interest rates. Lets look at significant years and decades to highlight this connection: 

1. 1970s: Mortgage interest rates significantly rose during this decade. The typical interest rate for a 30-year fixed mortgage was around 7.5% in 1970, but by 1980 it had increased to almost 13%. Because higher interest rates meant larger monthly payments for borrowers, making it harder for them to finance homes, this increase in rates resulted in a decline in home values.

2. 1980s: Mortgage interest rates hit a record high during this time period. The typical 30-year fixed mortgage rate in 1981 was above 18%. Due to the high rate, there was less of a demand for homes, which resulted…

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Staten Island/New Jersey May Market Snapshot: Are The Cracks Starting To Show?

At nearly 6%, the 30-year fixed mortgage rate hit a 13 year high this month. Have buyers pulled back in our seller’s market?

Average Home Sale Prices

For the second time in history, home sale prices broke $700,000 in Staten Island last month. The average home now sells for $706,557. In New Jersey we see the same thing happening. For Monmouth and Ocean counties, prices came back to record levels at $551,061. Only in September of 2021 did average home prices eclipse that, coming in at $554,307.

Available Inventory

Inventory is also still struggling to keep up with demand. Active listings are down from last year in both markets. In New Jersey, active listings fell 26% from last year to 2,553 from 2021’s 3,439. Staten Island inventory…

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Buyer Interest Dampened By Sharp Mortgage Rate Hike- Staten Island/Jersey Shore Market Report April 2022

Interest rates are now giving home buyers sticker shock. The market has dropped in Staten Island, as well as much of the United States. The Jersey Shore market continues to hold its own.

Mortgage rates around the country are now 5.37% according to CNBC Real Estate, the highest since 2009. Borrowing rates have risen faster than expected to, and are projected to rise further by year’s end.

Home prices fell in Staten Island by $26,775 to an average of $669,258. Active listings are also up by more than 100, from 1,279 in February to 1,381 in March. New listings came in at a healthy 654 new homes this month. This is on par with one year ago, when 659 new homes were listed in March. Sales are up from February’s 374 to 425 in March.…

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Rising Interest Rates Fuel Buyer Pullback: Staten Island/New Jersey Real Estate Market

All around the nation, mortgage rates have been rising for the first time since the start of the pandemic. Home prices have begun to stabilize after their breakneck climb.

Here in our local markets, Staten Island and The Jersey Shore, we do see some similarities between the two. But there are pronounced differences between buying and selling in these two areas.

Breakdown: Staten Island and New Jersey Real Estate, March 2022

Staten Island is the more stable market of these two. The Jersey Shore market is more volatile. Staten Island home prices remained about the same in February as they did in January. The average Staten Island home sold for $710,776 last month.

In Monmouth and Ocean Counties, prices came down quite a bit.…

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High Prices Remain For Housing Assets: Staten Island/Jersey Shore

There simply aren’t enough houses to go around! Inventory shortages have once again pushed home prices to a record high.

For the first time, the average home sale price in Staten Island cracked $700,000. The average property now sells for $707,376, an amazing $45,251 increase in just one month! In Monmouth and Ocean Counties, the average home fetched $540,740. Although this was up 14% from last year’s $474,411, prices in New Jersey appear to have stabilized over the past few months.

The inventory squeeze has created high buyer competition in both markets. In Staten Island, just 1,228 listings are available for the entire county. By contrast, 1,763 homes were listed at the same time last year. This hot seller’s market offers 30% less inventory…

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Real Estate’s Wild Ride of 2021: New York/New Jersey Market Recap

2021 was a historic year for real estate. Pandemic boom towns brought remote workers out to the suburbs, starting bidding wars that brought home prices to record highs.

Our two main markets, Staten Island and The Jersey Shore, are attractive for buyers leaving New York City. Combine this trend with the lowest borrowing rates in a lifetime, add in constrained new construction inventory, and this past year was a roller coaster to say the least!

Across the US, new construction has not kept up with shrinking inventory. Supply constraints pushed up home prices nationwide. But each market is different, as we found when serving clients in the New York Metro area and the Jersey Shore area.

Year Over Year Comparison:

Home Sale Price

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Staten Island VS. Jersey Shore Real Estate Market Report

Prices came back up again this past month in Staten Island. Despite a small slip in early fall, the average home in Richmond County now sells for $666,041. For the past six months now, home prices have stabilized around the $660,000 mark.

On the other hand, our new ventures into New Jersey have opened up an entirely different market. By contrast, the New York City market has been on a steady climb in recent years. Home prices on the Jersey Shore have been more volatile. Here, buyer activity is off the charts (literally).

In Monmouth and Ocean Counties, real estate now sells for above 100% of its asking price. Even in the hottest months, Staten Island homes have always sold at a slight discount from list price for as long as we have been…

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Staten Island Home Prices Hit ANOTHER All-Time High!

Inventory is down, prices are up, and sold listings are up too. The market is still clearly in favor of sellers. But for how long?

This past month, the average home sale price rang in at $653,519. Prices have been rising ever since the pandemic started last year, when home prices were $608,817. In a year, home prices have increased 7.5%.

Active listings fell 19% since last year too. There are currently only 1,517 homes for sale in Staten Island; last year 1,874 properties were available. Housing supply has now dwindled every month for an entire year since lockdown ended last June 2020. A tighter supply will of course increase demand, and the amount of new listings has not been keeping pace with the rise in sales.

In the month of May…

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Values Finally Give Way- Prices Down From Last Year For The First Time In Ages

(Pictured above: Monthly home sales have dropped precipitously over the last few months in the Staten Island market)

Home sellers have been reluctant to accept the market slowdown, insisting that prices are still up over the last year. That is now no longer the case.

The average home sale price in March came in at $570,088. This is down $13,426 from the prior month and $4,171 lower than one year ago.

Not only are prices down, but other indicators have also slowed considerably. March had only 261 closed sales, the lowest in 2+ years and down from 322 last March. Sold to list price ratio is down to 96.2%, tied with the prior month for a two-year low.

Month’s inventory is up to 7.46, another two-year high. This means it would take 7 1/2 months to…

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Chinese Investments Dropped Sharply Across NYC And Nationally in 2018

In the Staten Island market, Chinese buyers have shown the most interest in properties near the Verrazano-Narrows Bridge

Foreign investment activity can be a litmus test for the real estate market conditions. And lately, it has practically slowed to a crawl.

Over the past several years in New York City, real estate has been heavily propped up by Chinese investments. This has been a major vehicle driving more intense bidding wars and rising prices, particularly through the period of 2015-2017.

The New York Metro area has the largest foreign buyer pool in the United States. While the city has long been known for its high-priced real estate, foreign capital has been instrumental in pushing values to record highs over the past five years.

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