STATEN ISLAND, N.Y. (Dec. 9, 2023) – As 2023 nears conclusion, potential Staten Island homebuyers and sellers may be wondering where next year’s housing market is headed.

According to predictions from the National Association of REALTORS® (NAR), there are some reasons to be optimistic about the 2024 housing market. The organization forecasts a turnaround for existing-home sales, with projections of a 13.5 percent increase in 2024. NAR expects home prices to increase nationwide by 0.7 percent next year and forecasts the 30-year fixed-rate mortgage to decrease to an average of 6.3 percent in 2024.

Sandy Krueger, CEO of the Staten Island Board of Realtors® (SIBOR), said: “We would expect the Staten Island real estate market to be mixed in 2024. While there might be a slight increase in affordability and more options for buyers, home values are still expected to rise, albeit modestly. The number of homes for sale will likely remain low, which puts upward pressure on prices.”

Looking at last month’s numbers as measured against November 2022, according to the most recent data from SIBOR: New Listings of homes on Staten Island decreased 10.6 percent to 313; pending sales were down 15.5 percent to 224, and inventory levels fell 32.1 percent to 1,183 units.

The days on market until sale statistic was up 22.8 percent to 77 days, and Staten Island sellers were encouraged as the months supply of inventory was down 20.2 percent to 3.9 months.

MEDIAN SALES PRICE

According to NAR, the U.S. median existing-home sales price increased 3.4 percent from a year ago with annual price gains reported in all four regions of the country. Prices also continued to gain traction on Staten Island. The median sales price in the borough increased 4.9 percent to $700,000 in November, as compared to the same month a year ago.

When considering the cost of living on Staten Island in 2024, especially in relation to the real estate market, it’s important to factor in several aspects. According to BestPlaces.net, Staten Island has a Cost of Living index of 158.4, indicating that expenses including housing, food, childcare, transportation, healthcare, taxes, and other necessities are 58.4 percent higher than the U.S. average. However, the Island’s index is 30.4 percent lower than the average for New York. The median sales price on a Staten Island home for all of 2023 year to date is $660,600.

NATIONAL TREND

Low inventory, elevated sales prices, and decades-high interest rates continue to weigh on the housing market, causing sales of existing homes to fall to their slowest pace since August 2010. According to the NAR, existing-home sales in the United States declined 4.1 percent month-over-month and 14.6 percent year-over-year as of last measure, as prospective buyers faced with rising homeownership costs wait for mortgage rates and home prices to drop.

“Lack of inventory is providing the support for high prices, but it’s also making it super difficult for first-time buyers to enter the housing market,” said Lawrence Yun, chief economist of NAR, during a real estate forum in November.

Yun said the 30-year mortgage and Fed funds rates have likely crested.

“I believe we’ve already reached the peak in terms of interest rates,” Yun said. “The question is when are rates going to come down?”  He forecasts that interest rates will drop to between 6 to 7 percent by the spring buying season and anticipates that more sellers will enter the market.

“Builders are back on their feet, up 5 percent in newly constructed home sales year to date,” Yun said. “Builders can simply create inventory. In a housing shortage environment, builders are really benefiting.”

“Pent-up sellers cannot wait any longer. People will begin to say, ‘life goes on,'” Yun said. “Existing home sales will rise by 13.5 percent next year.”

In late October, as NAR looked ahead to 2024, the organization acknowledged that contract signings can vary greatly from market to market. NAR’s pending home sales index showed monthly increases for contract signings in the Northeast, Midwest and South, while the West saw a decrease. Sales are volatile at the moment, but better days may be ahead for home sales, according to NAR’s latest forecast.

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 or rent. Together, its members participate in over 5,000 real estate transactions every year.
SIMLS is the premier source for real estate listings and market information on Staten Island, providing real
estate professionals and the community with a comprehensive platform for property listings, market data, and
professional development opportunities.

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, LinkedIn (Staten Island Board of Realtors) and Instagram at SIBOR REALTORS (siborrealtors).