Marketwatch: The North Fork

Real estate on the North Fork had a strong summer, experts say

While market reports from the big brokerages weren’t published as of press time, sales were steady in the second quarter of 2024, according to the Corcoran Group, with the Southold/Peconic area doubling its contracts of properties priced more than $2 million. The median sales price on the North Fork was $963,000 in the second quarter, according to Douglas Elliman’s report, with 115 closed sales, up 26% from last year. Several agents said they saw a surprising burst of activity between June and August, particularly in the luxury end. With interest rates dropping and a presidential election looming, they had some key insights for buyers and sellers this fall and winter, too.

Summer Resilience
“We are definitely in a pre-pandemic market,” said Sheri Winter Parker, a licensed associate real estate broker with Corcoran. Winter Parker added that she was surprised by the number of exclusive listings she signed that were priced for more than $25 million.

Bridget Elkin, a licensed real estate salesperson with Compass, said the luxury waterfront segment was particularly busy. “A number of special waterfront properties traded at big numbers across the town of Southold this summer as both buyers and sellers saw it as an opportune time to transact,” Elkin said. She added that the market overall has been resilient this year. “In spite of it being an election year and the expectation of rate drops in mid-2023 to early-2024 never materializing, we continued to see solid buyer activity and deals coming together,” Elkin said.

Playing Catch-Up
For those seeking affordability on the North Fork, Elkin suggested looking at homes that could use a little work. These listings were most likely to experience price cuts this summer, she noted. “With buyers’ purchasing power already squeezed by high interest rates, they were less willing to pay up for homes that needed a lot of added investment out of the gate,” Elkin said.

The entry-level market, meanwhile, cooled the most, with the number of days on the market rising while asking prices dropped, noted Kristy B. Naddell, a licensed associate real estate broker with Douglas Elliman. The average days on the market overall was 99 in the second quarter, up 7% from the year prior, while listing inventory rose nearly 50% with 233 available properties. “With the increased inventory, buyers were a little more particular and sellers had to be more flexible with price and terms,” Naddell said of the summer market.

Looking Forward
“With rates coming down meaningfully over the past few months and the potential for more [inventory] to come, we expect steady buyer demand through the fall and winter,” Elkin said, noting that the colder months provide a less competitive market for buyers.

Naddell advised sellers to price their listings well if they want them to move quickly. “Homes priced on the money will sell but buyers are more selective again and will not overpay for homes so setting the price right from the start is critical,” she explained, adding that she expects an active winter.

“I would say the best thing to know is that it is a great time to sell and a great time to buy,” Winter Parker said. “If you are thinking about it, just make the move!” 

With the recent Federal Reserve rate cut of a half point, with further cuts likely to follow, most North Fork brokers see the market getting very active through the end of the year and into 2025.