LONG ISLAND - For Andrew Gippetti, a 3-bedroom home in West Islip was a worthwhile pandemic purchase.
"I love it," he said. "It’s an old home. A lot of character. It took a lot longer than expected. There were much higher offers in than ours. Luckily everyone backed out. We were the last man standing and it was totally worth it."
The housing market across Long Island is hitting all-time highs according to realtor Lisa Kennedy with Eric Ramsay Associates. She tells us it’s competitive and not uncommon for homes to be listed and under contract for over asking price in just a matter of days.
"For a house in the $400-500-range we’re talking about $60-70k over asking and a million dollar property it can be $200k over asking price," she said.
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The real estate boom began when people wanted to move East to the suburbs for more spacious living during the pandemic and mortgage rates were at an all time low. But experts say competition for houses coupled with quick purchases can lead to buyers second guessing themselves down the road.
"If you’re close to the edge to begin with financially and the unexpected happens, and it’s likely to happen, then it’s really likely you’ll be in a more precarious situation," said Dr. Herman Berliner, Professor of Economics at Hofstra University.
According to a recent Bankrate survey, 64-percent of millennials are facing regrets after buying a home compared with 33-percent of baby boomers. Economists believe one possible factor is desperation - younger homebuyers are more likely to settle for properties - another factor is finances. Paying more than you can afford.
"You need to repair the plumbing, you need to repair air conditioning, those are expenses I encountered and things you haven’t taken into consideration," Berliner said.
Another trend seen today - those who are close to retiring are selling their homes now a year or two sooner than they would just to cash in while the market is hot.