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.
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.