Jun

21

Long Island Real Estate Market: Update, May 2009

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For sellers, the song remains the same when it comes to the Long Island real estate market. Throughout the past 18 months, I have commented extensively on the main issue facing the market. I continually hear people trying to tell me that “it’s going to get better…”

I agree. However, it’s not going to be next year (2010).

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From this slide, we see that the country is seeing continued declines in home values. What this means is, while values continue to decline, it’s going to take that much longer to recoup what has been and what will continue to be lost during the next coming months. A closer look at our region may help.

june-09-long-island-home-prices.jpg

We have been hit hard here on Long Island. From increased unemployment to a total market saturation of homes for sale, Long Island is currently and will continue to take that beating.

What’s important for sellers to realize is that the first time homebuyer tax credit is an extremely important marketing item for their home right now. This tool allows a seller the added marketing tool in a bad economy to assist them and their real estate agent, in selling the home. Without it, the current buyer pool would not be so large.

Now in terms of how things are going, the next slide shows our greatest challenge.

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With over a 22 month supply of homes, we have a long way to go in order to balance things out. That 22 months is represented by dividing the number of homes for sale by the number of sales in a given month. The number of sold homes has been quite steady. And so has the number of available homes. With over 33,000 homes for sale throughout Long Island, the price of a home must be competitive in order to sell. It’s very simple.

Sellers, while you don’t want to “give your home away”, you must realize that this is a terrible market for sellers…and a great market for buyers. However, given the fact that it will most likely take 5 to 7 years to gain back a good portion of the equity lost in the past 30 months, this market is still a better market to sell in, then 12 to 24 months from now. The equity lost is not going to just “bounce back”.

If you want to sell your home and you want an honest and comprehensive look at your homes value, please contact me here.

(c) Copyright, 2009 www.tommcgiveron.com
By Thomas McGiveron, Licensed Real Estate Salesperson


Jun

17

First Time Homebuyer Tax Credit Information

Filed Under Buyers | 1 Comment

This video, provide to me by Tony Auffant of Continental Home Loans featuring Dean Hartman, Chief Planning Officer for Continental, is filled with fantastic information that will benefit any first time homebuyer who is serious about buying in this historic real estate market.

This is a two part series video. Here is part two:

Should you have any questions at all, please do not hesitate to contact me at 631.831.9048.

If you are searching for real estate and getting a little anxious about finding a home, please use my home search tool.

(c) Copyright 2009 www.tommcgiveron.com

Jun

14

What’s So Great about Homeownership Anyway?

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In this fantastic buyers market, I continually notice many buyers questioning whether or not now is the time. Each person has their own idea of when to buy, how much a home is worth, how further the market will slip in price and on and on.
I think one of the things that a lot of people are forgetting is what homeownership offers. And I’m not going to talk about the tax benefits (ask your CPA or call me).

Each home and potential buyer will vary when it comes to affordability based on financing options, the condition of the home, etc. But for the purposes of this article, I will use a simply pre-qualification for a potential buyer for any house, at any level. For this article, let’s assume that a 4 to 1 ratio for Income to Mortgage Payment (Principle, Interest, Taxes Insurance – PITI) represents affordability. So setting aside the issue of what is affordable and all the number-crunching people do, let’s assume when a buyer is out looking, that if they make four times what a mortgage payment will be – that’s affordable.

With regard to the interest rate, let’s assume that any mortgage that’s a fixed rate not exceeding 6.5% (yes, that’s right 6.5%) is a good quality interest rate. So let’s move that out of the way when we’re thinking about homeownership.

Clear your mind of all that stuff.

This article is about what’s great about owning a home. So let’s talk about what many people don’t talk about.

Owning the land under your feet. No one tells you how to manicure your lawn. It’s yours. No one tells you what shrubs to plant. You make the call. You want a deck or a fence, call the town, find out about any necessary permits and put it on your land. You want to repave the driveway, put in Belgium block, pavers – done. It’s your land.

Your home is your castle. Keep it as neat as you want or messy. The choice is yours. You don’t have to move out in a year, there’s no lease and no landlord telling you how to keep your home. No inspections and no one knocking on your door for the rent every month (you mail in your mortgage payment!).

Your space is all yours…and your guests. There’s nothing like entertaining guests in your new home, or your updated home. You don’t like the bathroom? Demolish it and build a new one. You don’t like the kitchen floors or the cabinets? Reface the cabinets or buy new ones and put in that tile floor you’ve always wanted.

Shopping for your home. There is nothing like going to a home and garden shop or Home Depot or any type of home improvement store and buying things to improve your home or fix your home. After a few years, of course a broken toilet or minor repairs can become a nuisance but in the long run, any improvement makes your home all the better.
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I think that sums up the “investment” aspect of purchasing a home. When you buy stock, you buy a piece of paper. You can build a home with that piece of paper and it doesn’t provide shelter or a place for your family to live. A home to live in, is not a typical investment. An investment property is not something you buy with the sole intention of making a profit within a given time frame. A home does not fit this criteria.

A home is a long-term investment for the average home buyer and one thing is certain, in this market, anyone who buys a home now is “getting a deal”. Period. You are buying low and eventually, you’ll sell high. That’s long-term investing. A home you buy to live in, is an investment in your family. It’s where you will live and eventually, someday, you or your kin will sell it for a profit of sorts. But for the years to come, your home will be all yours to make memories in and become a part of a community.

In the United States Constitution, there’s a few words and they say, “…and the pursuit of happiness.” Originally, this read, “…and property.” That’s what’s so great about homeownership.

(c) Copyright 2009, www.tommcgiveron.com
By Thomas McGiveron, Licensed Real Estate Salesperson