Jul

31

Long Island Real Estate Market: Attention Homeowners

Filed Under Sellers |


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In the Long Island real estate market, we continue to see foreclosures rising - steady and surely. To piggy-back my last article, I visited www.mortgagenewsdaily.com and viewed this clip from bloomberg news. It’s a must see.

I currently listed 2 foreclosures in West Islip, New York and one in Bohemia in the past 30 days. I launched www.islandforeclosures.org just last week.

The problem for homeowners is they must realize that another 20% reduction (which is very possible) over the next 12 to 18 months would be very real in their wallet. For buyers who buy now, that 20% is just that. If you buy now, the home you buy will drop in value 20%. Okay. But you’re buying a long term asset and you will recoupe that loss in equity and in 18 months, when rates are 9%…you’ll be sitting pretty at 5.2% (a nearly $900 monthly savings).

For sellers, another 20% reduction in their home value will be on top of the 30% lost since 2007! Yes…that’s 50%. If your home is worth $400,000, living in that home from month to month, will cost you approximately $4000 a month (in lost equity) to live there. Attention homeowners, if you want to sell, now is the time. Sell low (ouch)…buy low (yay!).

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



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