Multiple Listing Services of Long Island recently reported that there were 2,368 closings in December 2012 — a 25.7% jump over November’s figure of 1,885 and 7.5% higher year over year when there were 2,202 closings in December 2011. There were also 1,928 pending sales in December, compared to 1,838 in November (a 4.9% increase), but 1.7% lower than the December 2011 figure of 1,962 pending sales. (These sales are in contract and are not final.)

The overall median home price on Long Island fell 1.1% in December 2012 to $357,750, compared to $362,000 the previous month. For sales in contract, the median home price was $335,000, which was 2.9% lower than the November 2012 figure of $345,000. The lower home prices and near-record low mortgage rates have resulted in fewer homes on the market: available residential inventory fell 13% month over month and 22.4% compared to December 2011.

The jobless rate has long dictated how well the housing market will fare, but last month’s Long Island home sales report beat out economic indicators, as the New York State Department of Labor recently announced that Long Island’s unemployment rate rose to 7.1% last month and, at the same time, the region lost 2,700 private-sector jobs.

The recovery in the local real estate market could be attributed to the return to normalcy after Hurricane Sandy battered parts of the Island. Another reason for the jump in home sales may be that many high-income earners wanted to unload their homes before January 1, when the 3.8% tax kicked in on some of the investment income for those making over $400,000 a year. Some Long Islanders who were underwater on their homes wanted to complete a “short sale” before the end of the year, fearful that they may lose their deductions under the Mortgage Debt Forgiveness Act.