Sep

23

Long Island Distressed Properties Update Sept. 2011

Filed Under Foreclosure Info, Long Island Foreclosure Stats, Sellers | Comments Off


There’s no secret that Long Island has its share of challenges when it comes to real estate values. Most homeowners know that there are “a lot” of foreclosures and short sales and homeowners are hurting. Perhaps you know a neighbor, family member or a friend that can’t make the mortgage payment? However, I’m not so sure how much the average homeowner knows about the Long Island distressed market. This article will try and bring you up to date.

74,000 Unresolved Foreclosure Cases on Long Island

In my previous article, Long Island Distressed Housing Report July 2011, I pointed out the fact that we’ve got a big challenge ahead when it comes to working through the foreclosure mess here on Long Island. So we have the number, but what does it mean?

Let’s look at how slow New York is in processing homeowner’s loans in default and what the consequences are with letting people live in their homes for extended periods of time without paying their mortgage.

The “judicial” states, where a court is in charge of processing the legalities of foreclosure, are all on the left side of the graph. New York is sixth on the list of the highest count of first-lien mortgages in default. With over 5.5% of the mortgages in default in New York, we are faced with over 100,000 homes in foreclosure and over 250,000 that are behind on mortgage payments.

What Does This Mean To Long Island Homeowners

First, as these foreclosures or short sales come to market, they will be competition for “normal” homes for sale. What this means is, the buyer pool for homes that are not distressed (perhaps your home), will shrink, as many of these first-time buyers look to buy homes at a 40% discount.

Secondly, as more of these distressed homes come to market for sale and ruin their local neighborhoods by being boarded up, lacking a manicured landscape, and worse of all, attracting thieves who vandalize or vagrants who occupy the home illegally, the value of homes in these areas, will lose value. Let’s reiterate that point.

Appraisal Values

If you own a home and in the last 90 days, 43 homes have sold and 9 of these homes are foreclosure sales, that’s a 20.9% share of the market or 1 in 5 homes. And let’s say that 7 of these sales in the last 90 days were short sales, a 16.3% share of the market. The average sale price of a foreclosure is about 40% below the “normal” market and short sales range between ten to twenty percent of the normal (non-distressed) home value.

As an appraiser, he/she will make note of these sales and because of the rate of these sales, they will have to incorporate at least one of the distressed sales, as they make up over 1/3 of the sales. It doesn’t take a brain surgeon to realize that this is not good for home values. When an appraiser uses one of these sales the appraisal of your home, it will impact the value significantly.

Bottom Line: What About Selling Now

Because of the delays in the foreclosures being processed here on Long Island (due to robo-signing and other lender/owner challenges to title issues), right now, there is a lag of these distressed homes on the market. That said, as time progresses and the courts begin processing these foreclosure cases again at a 2500 per month basis…home values are going to drop on Long Island.

The good news is, right now, today – September 23, 2011, values are remaining stable but very fragile. If you are considering a move, I can start explaining the benefits of selling now, just to capitalize on the extremely low rates, but for the purposes of this article, I’ll stick to the main point – there’s is (and has been for 8 months) a lag in the processing of foreclosures so if you want to sell anytime soon (within the next 2 years), now is a fantastic time to do it. Otherwise, you may see your home value, in an appraisal, drop like a rock.

Hopefully, you use this information in a positive way and call me so we can get started (631)881-5959.

[Note To Home Buyers: Real estate is a long-term investment. I bought my personal residence in June of 2008 fulling knowing that the value would go down. I plan to own this home for many years, both as a home to live in (now and for the next several years) and in the future (hold on to it and rent it). I have a low interest rate and I love where I live. For the past 3 years, I have had the benefit of a Mortgage Interest Tax Deduction, I've paid down my principal and most importantly, my wife and I have loved every minute of living in our home. So if you read this and don't think it's a great time to buy now - you are missing the point of home ownership and all of its benefits. Lastly, the average net worth of a renter is less than $5,000 approximately whereas the net worth of a homeowner is over $95,000. Buying now, today, is a great decision.]

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Dec

8

West Islip Real Estate Market: 2010 Foreclosure Report

Filed Under Buyers, Long Island Foreclosure Stats, Sellers, Sellers & Buyers, West Islip Real Estate | Comments Off





The West Islip real estate market ended the year with eight foreclosure sales with an average sale price of $274,875. In 2009, there were 9 foreclosure sales with an average price tag of $370,644. There are three bank-owned (REO) properties currently listed on the Multiple Listing Service of Long Island (MLSLI.com).

Part of deciphering the distressed market of a town involves knowing how many homes are “underwater” or in danger of becoming bank-owned. This takes some talent, because if you were to use a search engine to look for “west islip foreclosures“, what you would find is there are about 115 homes “in foreclosure” according to various website results.

But rather than use such a broad number with limited details, we’ll look at short sales. A short sale is a home that is being sold for less than what is owed on the mortgage. A short sale is an option for avoiding foreclosure for homeowners who can no longer afford their home.

Therefore, these listed short sales are a good way to gauge how a town’s real estate market is fairing overall. In West Islip, as of December of 2010, there are ten homes listed as short sales. With about 149 homes listed for sale, the 10 short sales, plus the 3 REO listings, represent approximately 8.7% of the West Islip real estate market.

Bay Shore, by comparison, has a higher available inventory (440 homes total for sale) which includes 159 short sale listings and 20 REO properties on the Multiple Listing Service of Long Island. This represents a whopping 40.6% distressed market share in Bay Shore.

Lindenhurst offers 63 short sale listings and 11 REO properties for sale with an total available inventory of 242, which translates to 30.6% distressed market.

Given these two local comparisons, the West Islip real estate market is holding up quite nicely. Good news!

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Mar

24

Foreclosure Information On Long Island: “Shadow Inventory”

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This video article is going to showcase foreclosure information on Long Island, specifically foreclosure shadow inventory. Some previous articles that may help you understand what’s in this newest article are A Closer Look At The Impact Of Foreclosures In 2010 and How Many Homes Are In Foreclosure In Suffolk County.

This video is going to talk specifically about why it is a good time to sell your home if you’re considering making a move, despite the down market. The foreclosure shadow inventory (foreclosed homes that are yet to hit the market) is going to be staggering in 2010 and as we move into 2011.

(c) Copyright 2010 www.tommcgiveron.com
By Thomas McGiveron, LSA

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Feb

11

How Many Homes Are In Foreclosure In Suffolk County?

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So the question I recently asked myself is how many homes are in foreclosure in Suffolk County, New York. Immediately, I went to work and found out that there are over 190 homes that are bank-owned in Suffolk County…under $300,000. Foreclosures in Suffolk County priced over $300,000 numbers around 50.

So to be fairly accurate, it is okay to say that there are currently 250 homes in Suffolk County that are currently bank-owned…and on the Multiple Listing Service of Long Island. This 250 number does not include all the homes that are not listed yet, in the process of foreclosure, or currently in contract.

If I were to make an educated guess, based on my experience as a BPO agent (an agent who performs broker price opinions for banks to price out homes on their books), I would that there are over 10,000 homes in Suffolk County, that are somewhere in the process of foreclosure.

I complete about 50 BPO’s per month on average. And my competition in this business (other real estate agents doing just as much or more), leads me to believe that not just Suffolk county, but all over Long Island will be facing very difficult times in 2010 and well into 2011.

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Sep

17

Long Island Real Estate Market: 2 In 3 Homes Underwater In Western Suffolk!

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Today I was searching homes in Lindenhurst, Babylon and West Babylon for a buyer. I had certain criteria in my search guidelines which included number of bedrooms and price.

My initial search yielded 121 homes.

I then remembered that my buyer was not interested in short sales or foreclosures, so I updated my search criteria to include NO short sales and NO foreclosures.

My updated search yielded…40 homes.

That’s an 81 home difference. That means that over 66% of homes (or 2 in 3 homes) is a distressed sale.

That is absolutely unbelievable…

I wrote this on my blog at tommcgiveron.blogspot.com.


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