Interest rates, low inventory contribute to lower-than-average home sales

STATEN ISLAND, N.Y. – The cost of buying a Staten Island home increased in May as compared to the same month a year ago, according to a newly released report from the Staten Island Board of Realtors® (SIBOR). The report reveals the median sales price increased 2 percent to $650,000 when measured against May 2022.

The months’ supply of housing inventory in the borough is currently 3.9 months. When compared to May 2022, inventory levels fell 27.8 percent to 1,221 units, the number of days on market until sale statistic was up 56.4 percent to 92 days – and pending sales were down 10.4 percent to 369.

“Lower-than-average home sales can be attributed to both fluctuating interest rates and the prevailing shortage of inventory,” said Sandy Krueger, CEO of SIBOR.

Krueger points to a new Realtor.com® report that implies current housing-market conditions boil down to a “chicken and egg” problem. A Realtor.com article interprets the report by explaining: “It all starts with mortgage rates — which are about 1 percentage point higher than last year, hovering in the mid-6% range. This is a formidable deterrent not only for buyers, but also for sellers, who feel “locked in” to their current properties (along with the lower mortgage rates they got years earlier). As a result, even homebuyers who are willing to pay high rates are finding few homes for sale …” On Staten Island, May clocked in with 28.4 percent fewer new listings than last year.

“Many sellers report being concerned about finding another home, which may cause some of them to put plans to list on pause,” says Realtor.com® Chief Economist Danielle Hale. “But this reduces the total number of options for buyers in the market.”

NATIONAL TREND

As higher interest rates continue to impact buyer affordability, existing-home sales slid nationwide for the second consecutive month, falling 3.4 percent as of last measure, according to the National Association of REALTORS® (NAR). Nationally, sales are down 23 percent compared to the same period a year ago, while contract signings dropped 20.3 percent year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7 percent year-over-year nationally, although more affordable markets continue to see price gains.

About the Staten Island Board of Realtors® (SIBOR)
And Staten Island Multiple Listing Service (SIMLS)

Established in 1915, the Staten Island Board of Realtors® (SIBOR) is the largest professional association in Staten Island, N.Y.

SIBOR exists to enhance the ability and opportunity of its members to conduct their business successfully and ethically, and promote the preservation of the public’s right to own, transfer and use real property.

Comprised of approximately 2,500 members, SIBOR serves real estate agents, brokers and affiliated professionals throughout the borough and surrounding areas.

SIBOR is the provider of the Staten Island Multiple Listing Service Inc. (SIMLS), which works as a clearinghouse through which more than 275 local real estate firms exchange information on properties they have listed for sale. Together, its members participate in over 5,000 real estate transactions every year.

All SIBOR Realtors belong to the New York State Association of REALTORS® (NYSAR) and the National Association of REALTORS® (NAR).

SIBOR and the SIMLS may be reached at 718-928-3220 and viewed online at MLSsiny.com. SIBOR may also be visited on Facebook at Staten Island Board of Realtors, Twitter via @SIBOR and Instagram at SIBOR REALTORS (siborrealtors).

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Media Contact: Barton Horowitz
Relevant Public Relations, LLC
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