Jun

21

Long Island Real Estate Market: Update, May 2009

Filed Under Sellers |


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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).

june-09-house-prices-in-america.jpg

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.

june-09-inventory-vs-sales.jpg

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



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