Long Island Unemployment And How It’s Going To Impact The Real Estate Market

Filed Under Sellers |

Strange thing. I hear on the news about all this unemployment and it slowly creeps into your backyard. I know several friends and some family members who have lost their job. So I started to pay closer attention to what’s going on in our backyard here on Long Island. I decided to write about the Long Island unemployment rate to inform my reaqders of what is about to happen to the Long Island real estate market.

First I must state that I am personally concerned about what is going to happen with our local economy.

I am doubly concerned about how this economy is going to impact the Long Island real estate market in general.

As a Realtor, I see it as my personal mission to help educate the public not only about this or that house, but about the overall picture of what is going on and the unemployment rate increasing by 36% in one year in Suffolk county is something that raises my eye brow…alot.

Pearl Kamer, while I don’t know her personally, I have been told that Pearl has a reserved tone when it comes to making statements about things of this nature, so the word Pearl uses, “alarming”, send a red flag high in the air for me.

While I believe that now is such a fantastic time to buy, my main concern for this article is to show sellers that they really should consider calling me right this split second and getting their home on the market. I will be adding a few new articles about foreclosures, the subprime (Part II), and our sales numbers for January (scary stuff).

Now you may ask how unemployment will affect your home value. My answer would be quite simple. A further shrinking of the buyer pool is not good (less people with jobs means less people with money to buy homes). Secondly, unemployment lends to higher mortgage interest rates and the main ingredient for keeping the decline of home values from free-falling is the low mortgage interest rate.

The trickle-down effect of high unemployment rate is endless. Through this entire process, one thing is clear; the buying opportunities are only going to get much…much better.

FOR A COMPLETE MARKET ANALYSIS OF YOUR HOME’S VALUE - PLEASE CALL ME AT 631.831.9048.

Comments

3 Comments so far

Paul Warkow on March 6, 2009 12:04 pm
Excellent article. I think this is an excellent time to buy. I know many home owners are now under water and it is hard to sell their home. I specialize short sales to help those people sell their house.
tmcgllc on March 20, 2009 12:52 pm
Paul,

You’re a mortgage broker? How do you help homeowners sell their homes in a short sale? Via a referral to a Realtor?

And listen - I’m managing several SS’s right now and I’ve got 3 out of 4 in contract with one closing in a week and a half.
Paul Warkow on March 20, 2009 2:38 pm
I also negotiate short sales and get short sale approvals. The good news that if the mortgage is owned by Fannie or Freddie, their new regulations allow the realtor to receive a full 6% commission. Call me at 516-935-0700 if you have short sales that need approval from the lender.