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Long Island Starter Homes Sell Despite Skyrocketing Prices

July 28, 2018 - 6:00 am
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BAY SHORE, N.Y. (WCBS 880) -- Starter homes are a hot commodity on the Long Island housing market right now despite skyrocketing prices.

WCBS 880’s Sophia Hall spoke with real estate agent Lisa Kennedy of Eric G. Ramsay, Jr. Associate to learn more about this interesting observation.

"As agents, we all see something come up at this good place and we know we need to get our buyers in immediately,” Kennedy said. “So even when a buyer says to us ‘hey, I can go a Saturday,’ a good agent will say that's not good enough. Like if you want this house we need to go Tuesday."

In Nassau and Suffolk counties houses are being sold for $15 or $20 thousand over the asking price as a result of bidding wars between prospective buyers.

"We had a listing in Islip. It was priced to 89. If I tell you that this house had no less than 11 offers on it, it had two sets of contracts out to two different buyers. You know, eventually, it's in contract now for $15,000 over ask price,” Kennedy explained.

What’s contributing to the high prices of these homes? The new tax law that limits homeowners to a $10,000 property tax deduction. Kennedy explained that even on homes where taxes are $25,000 or $30,000 a year, she has not heard of people not buying a house because of the high taxes.