With each new year comes a new series of trends—and that’s especially true for the housing market. With the average home price in Suffolk and Nassau counties trending at $390,000 and $540,000, respectively, it’s safe to say a home is the most expensive purchase most people will ever make. With such a large investment, it’s important to stay up to date on anything and everything that could affect your home buying future. Here are five housing trends you should keep an eye on:
- Loan Limits Are Increasing
Low- to moderate-income homebuyers are in luck: In November 2019, the Federal Housing Finance Agency announced limits on FHA, VA, and conventional mortgages programs are significantly increasing in the majority of the country. That means a new level of homes will be available to these borrowers, which could create a more competitive market.
- Lower-Priced L.I. Homes Are Flooding the Market
It’s true: The U.S. housing market inventory has reached its lowest level since 2012—but no one told Long Island. While the overall number of available homes nationwide has dropped 14 percent (19 percent for those under $200,000), Long Island is experiencing a 21.7 percent increase! Homes under $350,000—which is 10 and 35 percent below average for Suffolk and Nassau counties, respectively—are being purchased as starter homes by Millennials and Gen Zers who have patiently waited their turn to fulfill their homeowner dreams.
- Affordable Cities Are Booming
More and more people are leaving behind high-cost home prices and property taxes in search of more affordable second-tier cities. While this strategy is proving beneficial for early adapters, eventually the influx will likely result in an increase in home prices, creating the same high-cost market homeowners were trying to escape.
- Gig Workers Are Catching a Break
Historically, gigs (aka freelancing) was not considered a stable profession, so gig workers had difficulty with the financial aspect of the mortgage approval process. Now, 36 percent of Americans work in the gig sector—a number that is expected to reach 52 percent by 2023. That’s why the Self-Employed Mortgage Access Act of 2019 is changing the game by naming certain alternative incomes acceptable when evaluating mortgage applications.
- Boomers Are Downsizing
With grown children who have left the home and the promise of retirement on the horizon or already a reality, more and more Baby Boomers (those born between 1944 and 1964) are trading in their family homes for smaller ones or community living, opening up a new market for younger homebuyers.
Now that you know what to expect out of this year’s housing market, it’s time to find the financial partner who will help you make the most of it. Suffolk Federal has the low fixed- and variable-rate mortgages, expert advice, and home buying resources you need to welcome you home: Learn more.