Jan

10

Long Island House Prices: Home Pricing Update, January 2009

Filed Under Foreclosure Info, Sellers |


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Long Island house prices are down 14.7 percent for 2008
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I am going to take you through a lot of information in this article. The purpose of this article is to lay it all out for you in plain english and simple graphs. That 14.7% figure is directly from Multiple Listing Service data. It is Island-wide, not nation-wide.

Long Island foreclosures are rising.
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How are foreclosures affecting the the Long Island real estate market? The foreclosures are setting the market value…because there’s so many of them!

Why would a buyer pay 335k when they can buy the same house for 280k?
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This slide shows the difference between asking prices and sales prices. That $92,000 difference is directly being affected by the amount of foreclosures throughout each town.

So I am going to assume that some of you think your town isn’t effected by foreclosures.
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I have written multiple articles about many towns throughout Long Island that have been effected by foreclosures. This is just a sample of towns throughout different areas. If you want numbers on your area specifically, call me or leave a comment.

So let’s talk about pricing.
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If you’ve read my previous articles about house prices, you’ve heard about me talking about supply vs. demand and months of supply. With over 34,000 homes for sale and only 1,700 sales, that equals out to about 20 months of supply. That means it would take almost two years to sell off all the current homes for sale, without taking on any new homes to the market.

Feng shui not going to get you $40,000 more for the house. It’s all about pricing effectively to begin with. Marketing techniques and effective home enhancements help to seperate a home that shows poorly and a home that shows great.

So where are prices going and what does the future hold? The Case Shiller index is considered the best source for accurate real estate data. Robert Shiller is an American economist, academic, and best-selling author. He has been a research associate of the National Bureau of Economic Research (NBER) since 1980. He is the founder and chief economist of the investment management firm MacroMarkets LLC and is ranked among the top 100 economists of the world.
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Again, one of the main items that supports this outlook is the months of supply.
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If found this map to be an amazing snapshot at real hard facts. The good news, the map is 6 months old. And the Long Island portion of it is down now to 19.7 months according to the Multiple Listing Service of Long Island.

So if you are thinking of waiting until Spring…or next Spring…or next Spring (by the way that’s 2012), at the very least, I suggest you call me so that I might share more information with you about the market and talk about what value Coldwell Banker brings to the table in order to help a great agent like me sell your home in this tough market. I look forward to hearing from you (877-765-3123, ext. 51).

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



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3 Comments so far

  1. Gary on January 10, 2009 4:54 pm

    Great post, Tom. Is there really an average $92K gap between ask and buy? Is that initial ask or final ask?

  2. tmcgllc on January 10, 2009 7:25 pm

    Overall - from where prices are selling to what the general asking price is, there is a difference of $92,000. When those two lines meet or get much closer, we’ll see a very large spike in sales.

  3. Long Island Real Estate Market | Tom McGiveron | Coldwell Banker Realtors on February 3, 2009 4:23 pm

    […] my previous article, Home Pricing Update, January 2009, I commented on depreciation and how Long Island would be affected by the high months of supply. I […]