Are you curious about the current state and future outlook of the Staten Island real estate market? In this comprehensive 2024 analysis, we'll dive into the key trends, statistics, and factors shaping the housing market in Richmond County, NY.
Key Takeaways:
- Staten Island home prices continue to rise in 2024
- Inventory levels remain tight, favoring sellers
- Certain neighborhoods stand out for their popularity and value
- Buyers face challenges but opportunities exist in foreclosures and new construction
Current Market Snapshot
As of 2024, the Staten Island real estate market remains competitive, with steady demand and limited supply. The median home price in Staten Island stands at $670,000, a 4.9% increase from the previous year. This marks yet another consecutive month of annual price increases for the borough.
| Key Statistic | Value |
|---|---|
| Median Home Price | $670,000 |
| Year-over-Year Price Change | +4.9% |
| Median Price per Square Foot | $424 |
| Homes Sold in Past Month | 324 |
| Months Supply of Inventory | 3.6 |
Compared to the national trends, Staten Island's housing market has not kept pace with the upswing in existing-home sales and inventory levels. According to the National Association of Realtors (NAR), national existing-home sales improved by 9.5% in the same period, driven by a dip in mortgage rates and an increase in housing supply.
Staten Island Housing Market Trends 2024
Median Sales Price Analysis
The median sales price for homes in Staten Island reached $670,000 in 2024, a notable increase from the $625,000 median in October 2023. This steady rise in home values bodes well for sellers but presents affordability challenges for buyers, particularly first-time homebuyers.
Price per Square Foot Trends
In terms of price per square foot, Staten Island homes now command around $424, up 3.9% from the previous year. This metric provides a helpful way to compare the relative value of properties across different sizes and layouts.
Price Variations by Zip Code
Home prices in Staten Island can vary significantly by location, with some zip codes commanding much higher values than others. For example, the median estimated home value in zip code 10307 (Tottenville) is $910,600, while in zip code 10303 (Mariners Harbor), it's a more affordable $549,900.
| Zip Code | Neighborhood | Median Home Value |
|---|---|---|
| 10314 | Westerleigh | $775,000 |
| 10306 | New Dorp | $699,000 |
| 10312 | Annadale | $775,000 |
| 10305 | Arrochar | $599,000 |
Year-over-Year Price Changes
Comparing 2024 home prices to the previous year, Staten Island has seen a steady upward climb. The year-over-year price change of 4.9% outpaces the national average of 3.8%, indicating a relatively strong and stable local market.
Market Activity and Dynamics
Available Inventory Levels
One of the key factors driving Staten Island's competitive market is the limited inventory of homes for sale. As of September 2024, there were 516 homes available, a 0.6% decrease from August. This tight supply puts upward pressure on prices and can lead to bidding wars among eager buyers.
Pending and Closed Sales Data
In terms of market activity, pending sales (homes under contract) were down 18% to 324 in March 2024. Closed sales also declined by 3.9% for the same period, indicating a slight slowdown compared to the previous year. However, this could be attributed more to the lack of available homes than a decrease in demand.
Days on Market Statistics
Homes in Staten Island are selling relatively quickly, with a median of 81 days on the market as of March 2024. This is a 22.2% decrease from the previous year, indicating that well-priced homes in desirable areas are moving fast.
Months Supply of Inventory
Another key metric for gauging the balance between supply and demand is the months supply of inventory. In March 2024, Staten Island had a 3.6-month supply, down 21.6% from the previous year. This suggests a strong seller's market, as a balanced market typically has around a 6-month supply.
Neighborhood Analysis
Most Popular Areas
Certain neighborhoods in Staten Island are particularly sought-after by buyers due to their amenities, location, and overall desirability. Some of the most popular areas include:
- Tottenville
- Huguenot
- Prince's Bay
- Annadale
- Eltingville
These neighborhoods command higher prices but also tend to hold their value well over time.
Up-and-Coming Neighborhoods
For buyers looking for more affordable options with potential for appreciation, there are several up-and-coming neighborhoods to consider:
- St. George
- Stapleton
- Mariners Harbor
- Port Richmond
These areas have seen increased investment and development in recent years, which could bode well for future home values.
Price Ranges by District
Staten Island is divided into three distinct districts (North Shore, Mid-Island, and South Shore), each with its own character and price ranges.
| District | Price Range |
|---|---|
| North Shore | $400,000 - $800,000 |
| Mid-Island | $500,000 - $900,000 |
| South Shore | $600,000 - $1,200,000+ |
Of course, there can be significant variation within these ranges depending on the specific neighborhood, property type, and other factors.
School District Considerations
For buyers with children, the quality of local schools is often a top priority. Staten Island is served by the New York City Department of Education, with several highly-rated schools across the borough. Some of the top-performing schools include:
- PS 50 Frank Hankinson (Elementary)
- IS 75 Frank D. Paulo (Middle)
- Staten Island Technical High School (High)
Buyers should research schools carefully and verify enrollment eligibility based on their address and other factors.
Buyer's and Seller's Market Analysis
Negotiation Trends
In the current market, sellers generally have the upper hand in negotiations due to the limited inventory and strong demand. However, buyers may still be able to negotiate concessions or price reductions if a home has been on the market for an extended period or has certain drawbacks.
Price Reduction Statistics
As of September 2024, 63.1% of homes sold below their original asking price, indicating that there is still some room for negotiation. However, the average price reduction is relatively small at around 2-3%.
Seller Concessions
Seller concessions, such as paying for closing costs or offering a home warranty, can sweeten the deal for buyers. In the current market, sellers are less likely to offer concessions, but they may be more willing to do so for homes that have been sitting on the market or have certain issues.
Buying Power Analysis
With mortgage rates still relatively low (around 3.5% for a 30-year fixed loan), buyers have significant purchasing power. However, the tight inventory and competitive market can make it challenging to find the right home at the right price.
Investment Opportunities
Foreclosure Properties Overview
For investors or buyers looking for a deal, foreclosure properties can offer significant discounts compared to traditional listings. As of 2024, there are 1,680 properties in some stage of foreclosure in Staten Island.
Bank-Owned Properties
Bank-owned properties (also known as REO or real estate owned) are homes that have been foreclosed on and are now owned by the lender. There are currently 26 bank-owned properties available in Staten Island.
Auction Properties
Properties that don't sell at a foreclosure auction may be offered at a later auction, often at a significant discount. There are 61 properties headed for auction in Staten Island as of 2024.
Investment Return Potential
Investors looking to buy and hold rental properties in Staten Island can expect decent returns, with average rents ranging from $1,500 for a one-bedroom to $2,500+ for a three-bedroom home. Fix-and-flip investors may also find opportunities, particularly with older homes in need of updating.
Market Challenges and Opportunities
Interest Rate Impact
While mortgage rates are still relatively low, any significant increase could impact affordability and dampen demand. Buyers should keep an eye on rate trends and be prepared to act quickly when they find the right home.
Inventory Constraints
The limited inventory of homes for sale is one of the biggest challenges facing buyers in Staten Island. This can lead to increased competition and bidding wars, particularly for well-priced homes in desirable areas.
Price Appreciation Factors
Factors such as the ongoing economic recovery, increased demand from buyers leaving the city, and limited new construction all contribute to the steady price appreciation in Staten Island. However, buyers should be cautious about overpaying in a competitive market.
Market Competition Analysis
With multiple offers common on many listings, buyers need to be prepared to act quickly and decisively. Working with an experienced local real estate agent can help navigate the competitive market and craft a winning offer.
Future Market Outlook
Growth Predictions
Looking ahead, the Staten Island real estate market is expected to remain strong, with steady price appreciation and demand. However, much will depend on factors such as the overall economic recovery, job growth, and interest rate trends.
Development Projects
Several major development projects are underway or planned in Staten Island, including the redevelopment of the former Stapleton Homeport site and the creation of a new mixed-use complex in St. George. These projects could bring new housing options and amenities to the area.
Market Stability Factors
While no market is entirely immune to fluctuations, Staten Island's diverse economy, strong job market, and relatively affordable prices compared to other NYC boroughs all contribute to its overall stability.
Economic Indicators
Key economic indicators to watch include job growth, wage growth, and consumer confidence. A strong economy and low unemployment rate bode well for the housing market, as more people are able to afford homes and feel confident about making a purchase.
Additional Considerations
Environmental Factors
Staten Island's coastal location means that certain areas may be more vulnerable to flooding and other natural hazards. Buyers should research flood zones and consider the potential impact on insurance costs and resale value.
Natural Hazard Risks
In addition to flooding, Staten Island is also at risk for other natural hazards such as hurricanes, nor'easters, and severe storms. Buyers should be aware of these risks and take steps to protect their investment, such as purchasing appropriate insurance coverage.
Community Development Plans
Staten Island's North Shore is undergoing significant revitalization, with plans for new parks, public spaces, and mixed-use developments. These projects could enhance quality of life and property values in the surrounding areas.
Transportation Access
While Staten Island is somewhat isolated from the other boroughs, it does offer several transportation options, including the Staten Island Ferry, Staten Island Railway, and express buses to Manhattan. Buyers should consider their commuting needs and proximity to transit when choosing a neighborhood.
Resources and Support
Local Real Estate Associations
The Staten Island Board of Realtors (SIBOR) is the main professional association for real estate agents and brokers in the borough. SIBOR offers a variety of resources and support for both industry professionals and consumers.
Multiple Listing Services
The Staten Island Multiple Listing Service (SIMLS) is the primary MLS for the borough, providing a centralized database of homes for sale and supporting cooperation among brokers.
Professional Services
Buyers and sellers can benefit from working with a variety of professional service providers, including real estate attorneys, home inspectors, mortgage brokers, and contractors. Your real estate agent can provide recommendations and guidance on assembling your team.
Market Research Tools
There are several online tools and resources available for researching the Staten Island real estate market, including:
By staying informed and working with experienced professionals, buyers and sellers can navigate the complex Staten Island real estate market with confidence.
Conclusion
The Staten Island real estate market in 2024 presents both challenges and opportunities for buyers and sellers. With steady demand, limited inventory, and rising prices, it remains a competitive market that favors sellers. However, buyers who are prepared, informed, and working with experienced professionals can still find their dream home or investment property in this dynamic borough. By understanding the key trends, neighborhood dynamics, and economic factors at play, buyers and sellers can make smart, confident decisions in the Staten Island real estate market. Also if you're considering a move, it's essential to weigh the pros and cons of relocating to Staten Island to determine the best fit for your needs.
Posted by Robert DeFalco on
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