Like many other industries, real estate has been turned upside down by the COVID-19 pandemic. Before the virus interrupted everyday life as we knew it, the Long Island housing market was operating at a pretty above-average rate. According to Libn, in 2019 a record $15.8 billion worth of homes were sold on Long Island. That year’s 29,053 closed home sales were the most in recent memory, even surpassing the boom years of the mid-2000s. But even though there happens to be a pandemic, Long Island has still seen tons of homes sell in 2020. According to The Real Deal, the record-breaking number of transactions for the quarter have depleted inventory, contributing to rising prices and bidding wars. Long Island — including Nassau and Suffolk counties — had 9,942 home sales from October through December. That was a big jump from the 7,611 homes that sold over the same period in 2019. The median price of a home that sold in that area was $525,000. Sellers are getting way over the asking price since people seem to be leaving Manhattan for Long Island. With people being in quarantine they have realized that having a backyard is better when kids are involved and wealthier NYC residents are flocking to The Hamptons.
ABC News reported Nassau County Executive Laura Curran explaining another reason that home sales have surged: pent-up demand as showings finally reopened post lockdown. Prices island-wide are up 5.55% in Nassau County. And along the North Shore, that number jumps to nearly 9%. Experts say millennials are driving the new wave — those on the older side, in their 30s, with families, but still looking to get out and enjoy eating and shopping. “And these walkable, vibrant downtowns are a real key to that,” Curran said. “That’s what young people are looking for.” But aside from the fear of COVID and the ability to work remotely, officials say the recent surge in gun violence in New York City may be what’s sealing the deal. Since record-low interest rates are helping more people qualify for home loans, it’s resulting in a very hot real estate market. Also according to The Real Deal Median home prices in Suffolk and Nassau counties hit record highs in November. Suffolk County’s median sales price was $472,500, up 18.4% from November 2019. That trend appears to be continuing, as pending sale prices were up 16 percent year-over-year. The number of sales was 19% higher. Both counties came to a standstill during lockdowns starting in March but quickly recovered in the months when restrictions on real estate activity were lifted.
Sharestates has experienced a surge in lending recently. Since restrictions for construction have lifted, borrowers are also getting back to business. They are seeing their opportunities increase and Sharestates has recently funded some exciting projects on Long Island in return.
Recently funded Sharestates projects in Long Island: Syosset, Long Island
Syosset is located on the North Shore of Long Island. The school district in Syosset is ranked as one of the top districts in New York State making this a very popular area for young families. Another reason why Syosset is so attractive to families is that it’s only 27 miles away from NYC making it a very commutable town. This property is a 1 residential/1 medical unit property. The borrower is acquiring the property to add value. When the rehab is complete, the property will be leased out to tenants. The borrower plans to refinance into a conventional loan after rehab is completed.
- Loan amount – $547,000
- Loan Purpose – Bridge
- LTV – 75%
- ARV – 64%
Roslyn Heights, Long Island
Roslyn Heights is another beautiful town located on the North Shore of Long Island and is approximately 22 miles from NYC. Living in Roslyn offers residents a suburban feel and most residents own their homes. There is a mix of young professionals and retirees that call Roslyn home. The public schools in Roslyn are highly rated, making it another attractive town for young families. This property is going to be a complete tear-down and ground up construction of a new single family residence. After finishing the project, the property will be leased out.
- Loan amount – $910,000
- Loan Purpose – Construction
- LTV – 70%
- ARV – 65%
For more information on properties we have funded or for more information about our loan programs click below.