Prepping to buy or sell Staten Island real estate? Continue reading to learn about prevailing
trends and what to expect in the market this year.
2022 IN RETROSPECT
For Staten Island real estate, the year started on an optimistic note. For the first time since
2006, the market saw an uptick in existing home sales. 2021 recorded an 8.5% year-on-year
change, with home buyers motivated by the historically low mortgage rates. There was an
expectation that such a trend would continue in 2022, but certain challenges were identified as
● The year started with only 910,000 existing homes in the inventory, which is the record
lowest since 1999.
● By the end of the month, only 433 new listings entered the Staten Island real estate
market. While this was significantly more than what was recorded in December 2021, it
still reflected a 19.7% year-on-year decrease.
● On the flip side, sellers in Staten Island were incentivized. The median sales price in
January 2022 rose by 12.1%, from $580,000 to $650,000. The inventory was also
down to 1,019 units or 2.2 months. Buyers also continued to swoop onto the market,
which shortened average days spent from 99 days to 74 days— a 25.6% year-to-date
decrease.
In the end, 2022 proved to be a challenging year not only for Staten Island real estate but the
national housing market as well. Mortgage interest rates increased, as did sales prices. The
effects of inflation were also widely felt throughout the country. Here are some of the key
takeaways from the Staten Island Board of Realtors’ (SIBOR) December 2022 report:
● Market activity was severely affected by the rising home prices. December only saw
212 listings enter the market, 22.6% less than December 2021. Pending sales also fell
by 41.8%, from 385 to 224. Only 338 home sales were closed.
● With less buyers, properties spent a longer time on the market— 78 days, which was
9.1% more year-on-year. And although the inventory only had 1,202 homes for sale,
there was a supply of at least 3.5 months. This tipped the market in buyers’ favor, as
supply outstripped demand and there was a wider selection of homes to choose from.
● In terms of real estate prices, the median fell by 0.6% from $620,000 in December
2021 to $616,500 by the year’s end. The average sales price also slightly decreased,
from $661,201 to $659,204 year-on-year.
WHAT ARE THE TRENDS LIKELY TO AFFECT STATEN ISLAND REAL ESTATE IN 2023?
Based on 2022 data, it’s reasonable to expect that the market will continue to slow down this
year. This may result in further price reductions, particularly in more expensive parts of the
country. Buyer demand may prevent significant decreases, however, but it remains to be seen if
buying activity will pick up in the next few months. For now, Staten Island real estate is a
balanced market, neither favoring buyers or sellers.
2023 is shaping to be even more ambiguous. Experts can’t agree whether home prices will
increase by 5% nationally or decrease by as much as 22%. What happens in the broader
economy, not to mention mortgage interest rates and housing supply levels will definitely
shape which way 2023 swings. As it’s only the first few months of the year, it’s still a little too
early to tell.
On the bright side, mortgage rates are likely to become stabler this year. While there is no
going back to the glory days of 3% rates, housing economists predict rates to settle at around
8%. This will depend, however, on inflation.
No matter the market trends or economic forces, the fact remains that people will still need to
buy or sell homes in their respective areas. One of the best things to do to ensure a successful
real estate transaction is to work with a local Realtor with a deep understanding of how Staten
