Long Island City Real Estate | Swipe 👉 Or 👈?

According to data from Realtor.com

Long Island City is a neighborhood of class and convenience that merges the best of Queens, Manhattan and Brooklyn. You get the Manhattan skyline, waterfront, and better deals than you would if you were to directly invest in Manhattan. It is a popping city that provides excellent commute times to Brooklyn, Manhattan and Queens using just public transportation like the Q, N, E, M, N, & 7 trains along with the LIRR or Ferry.

Long Island City has a unique history as it was once incorporated as it's own entity in the late 1800's which encompass the village of Astoria and the hamlets of Hunter's Point, Blissville, Sunnyside, Dutch Kills, Ravenswood, Steinway, Bowery Bay, and Middletown. In 1898, Long Island City became a part of New York City within the borough of Queens with it's signature 11101 zip code.


Days On Market

From Street Easy Market Report

According to this data (with March 2020 omitted), it shows a relatively unchanged data set alongside the next chart showing marginal decreases in inventory alongside a sliding Manhattan Real Estate market correlating a supply glut in Manhattan and it's drastic price delta, versus relative value and price beta in Queens county. This is important as Manhattan typically has more price volatility than Queens due to over supply in Manhattan due to new developments and lower demand. LIC, being on the border of both, might benefit somewhat from the price inflexibility of Queens and the long term value or proportional price alpha and beta.

A cool article to read based on today's climate on NYC Real Estate

However, in my opinion of March's data which is yet to be released, things are going to drastically change in all boroughs' markets. There are slight difference in data depending on where you pull them from, and how they were calculated. But according to Realtor.com, Days on Market for LIC is 147 as opposed to around 125 from Street Easy. However, the former was calculated as a median whereas the latter was calculated according to an average index.

On a personal standpoint, with having access to 2 different MLS's and in a city under quarantine, many listings were pulled due to initial procedure mandates of temporarily pulling houses off market, to now being able to list homes with strict adherence to work-from-home policies.

As a result of a wide spectrum of volatility in the market, sale to list prices have shrunk to 95.5% and median prices of houses have lowered.

According to Market Activity Generated by RPR using Public Records on 4/6/2020

Homes are still being sold in Long Island City, and the relatively high Sales to List Price metric of 95.55% in February 2020 is a good indicator for people who want to preserve their capital from a further falling market; Or for buyers who want to invest in growing markets over the long term and in a developing city such as LIC where rent is increasing due to the convenience that LIC brings and the corporations that are being attracted to it; ultimately meaning more jobs on the horizon.

The education system in LIC is good and is home to many specialization programs for those students qualified. You can read more about that in your free time.

My Opinion: The Bottom Line

There is no right or wrong answer for what you should do with either your property or whether you should buy up some undervalued LIC houses as investment properties from motivated sellers. It depends on whether you truly feel like the market will crash some more, or if the prices listed now still provide upside potential over 2 to 4 years, which is when most investors typically sell.

During market panics, rentals might become more in demand as this article speculates. So with median rent and average rent for LIC ranging between $2,500 to $3,200; there might be some upside to an investment depending on your risk profile and time horizon. If you're seeking any tax or other legal guidance, consult those professionals. Contact me here if you need any recommendations.

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Find all inventory in the market by searching here. All listings are owned by their respective brokers.
Long Island City Real Estate | Swipe 👉 Or 👈? Long Island City Real Estate | Swipe 👉 Or 👈? Reviewed by Alex Sung on April 05, 2020 Rating: 5

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