Long Island Real Estate Market: Prices Are Dropping?

By
Real Estate Agent with Long Island Real Estate Market: Realty Connect USA

I recently sat with a homeowner to discuss the fair market value of their home and to talk with them about the Long Island real estate market. We sat to talk and started talking about the market. She had lived in her home for 35 years and was curious about selling.


As we talked, I showed her all the information that I normally review. This information contains the latest insights from experts in the real estate industry as well as my expert analysis of the Long Island market.
Halfway through our discussion, she said, "Oh, so prices are dropping?"


This interaction helped me realize that I, and my colleagues in the real estate business, have our work cut out for us. There are a number of homeowners out there that just do not pay any attention to what's happening. And there are some that do listen and know a little, but still think Spring will bring higher prices.


best-slide-90-vs-now.jpg
With nearly a 28% drop in prices since 2006, Long Island real estate [NEWSFLASH] prices are dropping. This graph shows just how different the Long Island real estate market is today as opposed to the 1990's. I recently had a discussion with an investor in Babylon who told me, "We've been through this before in the 90's. We'll ‘bounce' back." Well this graph breaks down both the 90's and now and what you see is that long line going down...we're over 200% worse off now than we ever were in terms of lost equity/value. The depreciative numbers are staggering.


The current inventory, as of February, 2009, for homes available for sale on Long Island was 32,746 homes for sale. As for demand (buyers), 2486 closings ocurred in February, with Suffolk county seeing the most sales at 905 units sold according to the Multiple Listing Service. And remember, those closings are homes that went into contract most likely in November/December, 2008 and some in January of 2009.

Click here for more information on Inventory and how it's affecting price.

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Rainmaker
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Laurie Mindnich
Centennial, CO

Tom, it seems as thought there's still this misconception that bubble pricing constitutes the recovery- people don't seem to fully grasp that those days are no longer. A recovery will be a return to sane pricing, with buyers that qualify under conservative guidelines. (opinion, of course)

Apr 03, 2009 07:37 AM #1
Rainer
32,810
Thomas McGiveron
Long Island Real Estate Market: Realty Connect USA - Bohemia, NY

it could be argued what you said is fact - not so much opinion.

one need only look at the numbers.  it makes me laugh when i read a stupid article in LIBN about sales increasing...lol.

they talk about a "big february" - yes sales shot up nearly 90% - but we all know that CLOSINGS in February are contracts from November and December - when rates went down like crazy.

I suspect April, May and June to have strong CLOSING numbers from Jan, Feb and March.  Then this will continue of course and increase in July, Aug and Sept - when all the contracts from Spring close.

but PRICES will continue diving just based on the fact that we have a 20 month supply of homes.

Apr 04, 2009 12:14 PM #2
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Rainer
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Thomas McGiveron

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