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Tight supply drives up home prices across Long Island

A home for sale on Clinton Avenue in

A home for sale on Clinton Avenue in Huntington on July 26, 2017. Photo Credit: Newsday / William Perlman

A near-record low supply of listings is driving up housing prices across Long Island, from modest homes on the South Shore to luxurious mansions in the Hamptons.

The median closed sale price on Long Island, excluding the East End, was $404,000 in the April-through-June period, up 5.6 percent from a year earlier, the brokerage Douglas Elliman and the appraisal firm Miller Samuel said in a report to be released Thursday. Brokers listed 13,391 homes for sale — roughly half the number listed in spring 2008, when Long Island home prices had started to decline early in the recession.

That’s the lowest spring inventory since at least 2004, Miller Samuel reported.

The scarce supply forced buyers into bidding wars, brokers said. “Buyers have to be ready, willing and able to jump as soon as a house comes on the market,” said Ann Conroy, president of Douglas Elliman’s Long Island division.

The price increases were seen in all regions of the Island tracked by the companies, including the Hamptons, the North Fork, and the north and south shores of Nassau and western Suffolk counties.

The biggest gain was on the North Shore of Suffolk, where prices jumped nearly 12 percent, to $430,000. Along Nassau’s southern coast, home values rose by 8.1 percent, to $459,500.

Young first-time buyers are especially drawn to walkable downtowns near train stations, said Deborah Hauser, regional manager for Daniel Gale Sotheby’s International Realty, based in Cold Spring Harbor. “They’re not interested in having the McMansion that they may have grown up in,” she said.

In the Hamptons, the median price increased by 5.6 percent year-over-year, to slightly more than $1 million. The Hamptons luxury market — that is, the top 10 percent of sales — had annual price increases of 12.3 percent.

On the North Fork, homes fetched a median price of $551,000, up 3 percent from a year earlier.

Low inventory and rising prices are a theme in regions including the Northeast, Florida and California, said Jonathan Miller, chief executive of Miller Samuel.

This year’s gains are not creating a bubble, since strict mortgage lending standards are keeping a lid on the market, Miller said.

In the Hamptons, some of the biggest gains have been in exclusive communities such as the Village of Southampton, where the median price spiked by 40 percent annually, to $2.8 million, Manhattan-based brokerage the Corcoran Group said in a report to be released Thursday.

The increases were driven by big-ticket sales such as an oceanfront estate on Meadow Lane in the Village of Southampton that fetched $24.6 million, said Ernest Cervi, Corcoran’s executive managing director for the East End.

At the same time, “there’s still a very strong appetite for entry-level properties that can be rehabbed,” Cervi said.

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