The New Housing Numbers

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People who are following the Long Island real estate market and my updates were probably not surprised by the latest story in the news about the latest housing numbers. The doom and gloom of the media, playing on peoples emotional strings for the purposes of trying to stir up ratings only helps people make poor decisions.

The tax credit during the spring, which is historically, the best time for real estate in that many buyers are buying and sellers are selling. July and August are both months where the real estate market, in normal conditions, slows down. It’s summer. People are out at the beach, not in hot open houses. Are there people buying – of course, but generally speaking, the summer is slower than Spring.

So the freak out that the media is trying to cause had no effect on me emotionally because I knew that sales would slow down. Anyone who’s following the real estate market knows this.

Now the “bad news”. Yes, prices will continue to soften because of the amount of inventory on the market. That’s a fact. Employment is high and there are many people who are still afraid to buy…just about anything. But demand will slowly increase (as it usually does during the fall and then just after the holidays).

Interest rates are at historic lows and prices are very good across the board for any type of buyer, especially first-time and move-up buyers. For the homeowner who wants to sell and “move up” to a newer home or larger home, with rates so low, even if you drop your price, you’re most likely going to be buying on the other side, at a great price as well.

These latest real estate numbers really mean very little in the larger picture. They were expected.

It is expected that about 5 million homes will sell in the next 12 months (conservative industry standard). Now the challenge is, there will be double that amount in available inventory. So which ones will sell?

The homes that will sell will be the homes with compelling prices. This means, when buyers see your home, it needs to look its best and have a price tag that makes them stop and say, “OMG, I’ve gotta have this house”. If you’re not there in that price area, then you’re home will not sell.

I hear many people say that it’s not a good time to sell. Well, they’re half right. Of course it’s not a good time to sell in the overall grand scheme of things. Yes, 2005 was the best time to sell. But that’s crying over spilled milk. Now is also a good time to sell because rates are low (more buyers can afford more to spend) and prices on the other side (when you’re buying) are low as well! Even if you’re not buying after you sell your home, think about my last article on the market and the decline of prices over the next 12 months or so. Do you want to lose another 5% to 8%? Selling now is better than selling later.

The sky is not falling and if you want to sell your home, you will be able to sell and move on with your life. You’ll just be better off financially doing it sooner than later.

If you want to discuss the value of your home and how I can assist you, please call me at (631)831-9048.

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