A report finds Long Island home prices are overvalued, but it is worse in other areas of the country.
More than 400 U.S. metro areas were examined by Moody’s Analytics. Their report found homes on Long Island were overvalued by over 16% in the second quarter, below the national average of 26%.
However, homes on the island are more overvalued than other parts of the New York metro-area by 10%.
According to the real estate multiple-listing service, the average sale price for a home in Nassau County in July was $720,000. That is over 30% higher than July of 2019. The average price of a home in Suffolk County was $575,000 in July, close to 40% higher than three years ago.
Economists with Moody’s said this should not be cause for concern for Long Island homeowners, especially those who do not plan on selling in the near future. They predict prices will return to their fundamental value over time.
