In the years leading up to 2020, a convenient location was at the top of the homebuying wishlist. Even in suburban areas, people were searching for homes close to shopping, dining, and schools. Homebuyers were also more likely to opt for less square footage or a smaller property if it meant they could be close to a walkable downtown. 

This year, that has all changed. 

Bigger homes and sprawling yards are at the top of buyers’ lists as more people are working and schooling from home. 

Increase in Property Values

Buyers aren’t merely adding more rooms to a ‘would be nice to have’ list. Square footage has become a priority that people are willing to pay for. 

In Suffolk County, the median home value in August 2020 was $456,000. This is a 10.1% increase compared to August 2019. Nassau County is experiencing similar activity, with the median home value at $595,000 in August 2020, a 7.6% increase from the previous year. 

The Shift in the Luxury Market 

In addition to median prices rising on Long Island and across the nation, we’re also seeing a dramatic shift in the luxury market. 

Locally, Nissequogue and Head of the Harbor have an average listing price of over $1.7 million. In July and August alone, 14 homes went under contract in these two villages. Last year during the same time frame, there were only 4 pending sales. It’s clear from the data that more buyers are active in the luxury market this year. 

According to the Institute for Luxury Home Marketing, fall 2019 was the height of a luxury condo boom. Now, those same people are looking for much larger estates. 

“The last six months have seen a resurgence in the buying of mega-mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.” - Institute for Luxury Home Marketing

Whether moving to a rural area or into a mega-mansion, one thing is clear: buyers are searching for space. Connect with us to learn how we can help you navigate this changing market.