Local Market Report - Realty Connect USA

Local Market Report
Volume 10, Issue 1
Our Message
All of us at Realty
Connect USA hope you
enjoy this issue of our
Local Market Report,
which presents the
latest real estate
information for the Long
Island market. All the
graphs and charts compare the first quarter of
2010 with the same
period in 2009. Please
keep in mind that the
2009 Real Estate market
was one of the toughest
on record and that’s the
basis of these
comparisons. The next
several months could tell
the tale for the remainder
of 2010 and well into
2011. There are many
changes in key areas that
affect Real Estate values
both nationally and
locally; Such as, changes
in the mortgage industry,
expiration of the
governments’
homebuying tax credits
and how the banks will
treat the millions of
houses with negative
equity. To help sort
through what this means
to you we encourage you
to consult with one of our
highly qualified sales
associates for the most
up to date information.
We strongly believe that
in this ever changing
world that to best serve
our clients, with sound
advice, we must keep
current on all conditions
affecting today’s housing
market. This is an
Obligation at Realty
Connect USA that we
take very seriously.
Long Island, New York
What...Home Sales Are Up!!
That’s right! The Real
Estate market in the
Residential Unit Sales
Long Island Region for
the first quarter of 2010
has experienced what
most would call a surge!
Whether due to buyers
31%
23%
7%
rushing to take
advantage of the
government tax credit
before the April 30th
deadline, or the
realization that home
values are just too good
Source: MLS LI
to pass up. Either way,
Please note: This chart only tracks residential home sales. Later in this
the buyers are out and in
report we breakout the condo/co-op segment.
strong numbers. With
home sales up an average of 22% over same period last year! Everyone is feeling
pretty good about the market; but remember we are comparing it to one of the
worst years for home sales in a long time. Either way, that’s a huge
improvement; with Suffolk County having the largest jump with over 30% more in
sales than last year. So among all the bad news circulating regarding the real
estate industry, the fact is that more people are signing contracts on homes and
at a very, very robust rate.
22%
Sale Prices Rise-Correct???
On the surface, that’s right!
Residential Prices
But we need to look a little
600000
deeper for the true picture.
2%
10%
5%
The average sales prices in
500000
1%
all 3 counties “overall” did
increase. But does that
400000
mean in your community
300000
prices are increasing?
When we looked deeper
200000
into the numbers, we found
100000
that in over 2/3 of the
Communities, sales prices
0
actually decreased. What
SUFFOLK
NASSAU
QUEENS
ALL
Source: MLS LI
actually happened is that
Average Sales Price Jan 1st - March 15th 2009
Please
Source:note:
MLSLI This chart only tracks residential home sales. Later in this
more homes sold in the
Average Sales Price Jan 1st - March 15th 2010
over 750K price range that report we breakout the condo/co-op segment.
increased the average of all sales. So for most of the communities the reality is, at
best, home prices are stable and in most cases decreasing. Click here for a
complete list of home sales and prices in your community .
Page 2
Market Report
Is Confidence Returning?
Houses New To The Market
18000
45%
16000
14000
12000
10000
8000
37%
47%
6000
52%
4000
2000
0
SUFFOLK
NASSAU
QUEENS
ALL
Source: MLS LI
Houses New to the Market Jan 1st - March 15th 2009
Based on these facts,
it appears so….
What is striking is
that Homeowners, in
a big way, have
decided that now is
the time to put their
homes on the
market. Houses new
to the market in this
period are up a
staggering 45%.
That’s over 5,000
more houses for sale
now on Long Island
than a year ago!
Normally this
increase of this
amount would be
considered a glut to
Houses New to the Market Jan 1st - March 15th 2010
Source:
Housing Supply
the market, but as
you will see in the
30
graph to the right,
even with this
25
increase of new
listings, the housing
19%
supply is still well
34%
19%
20
23%
below last years
bloated levels. So
15
choices are still in
abundance for the
home buyer. Are you
10
thinking about
buying? What are you
5
waiting for? You have
great choices, great
0
interest rates, great
prices and can still
NAS
QNS
ALL
Source: MLS LI SUF
qualify for the government tax credit. So
MONTHS
SUPPLY
FEB 2009 yourMONTHS
FEBor
2010
: very
add it all up and now may Source
be your
best time
to purchase
primary,SUPPLY
second
vacation
home.
Page 3
Are Long Islanders Making A Lifestyle Change?
Condominium/Cooperative
Sales
1400
52%
1200
1000
800
47%
600
Source:
MLS400
LI
43%
77%
200
0
SUFFOLK
NASSAU
QUEENS
Source: MLS LI
UNDER CONTRACT Jan 1st - March 15th 2009
ALL
Maybe so…..Based on
the information in the
chart the answer would
be YES! For the first
quarter of 2010 the
condo/co-op market has
experienced a
tremendous increase in
unit sales. Overall, this
better than 50%
increase may indicate a
lifestyle shift for the
Long Island Home
buyers; or maybe it is
just the attraction of
lower prices that is
fueling this segment of
the market. Both are
UNDER CONTRACT Jan 1stCondominium/Cooperative
- March 15th 2010
Source:
MLSLI
Average Sale Prices
appealing and either
way, condo’s are a
hot item. There is
400000
no doubt that on
Long Island we are a
350000
graying community
2%
and many people
300000
chose this carefree
5%
3%
250000
lifestyle, however,
this lifestyle choice
200000
for the first time
buyer, singles and
150000
newly married is
there too! As you’ll
100000
see in the graph to
50000
the right the condo/
co-op prices have
0
been relatively staSUFFOLK
NASSAU
QUEENS
ALL
Source:
MLS LI
ble for the past year.
On average you
Average Sales Price Jan 1st - March 15th 2009
Source:$265,000.
MLSLI
could purchase one for about
Compare
residential
home
Averagethat
Salesto
Price
Jan 1st - March
15thprices
2010 and that’s
about $200,000 less. So is this a good deal? You decide.
1%
Page 4
So…..Will It Last?
Well if you follow the industry trends
and the analytics used to predict the
future real estate markets most
experts are cautious. With the
impending rise in mortgage interest
rates and more homes coming to the
market is widely believed that sales
prices will begin to drop. Although
Long Island is geographically unique
and somewhat isolated, these
indicators do have an effect on home
values right here at home. So lets
enjoy all the good news while we
can and hope that with the
expiration of the government tax
subsidy home sales do not follow the
trend of vehicle sales when cash for
clunkers ended. Stay informed by
checking back often for our local
market updates.
New Home Sales-News Not As Good….
New homes sold at a seasonally adjusted annual rate of 308,000 a year in February, according to the
Commerce Dept. That's down from 315,000 in January, a record low. It's also lower 354,000 in
February 2009, twelve months before. If you remember, February of last year seemed like a terrible
time for new home sales.
Back at the peak of the building boom, in October
2005, new homes sold at an annual rate of 1.4 million.
That's more than four times the current rate. Of
course, we can all remember a time when home buyers
would have driven through a rain of fire to make an
offer thousands of dollars above the asking price for
their dream home. Now the opposite seems to be true:
Even an $8,000 federal home-buyer tax credit that
expires April 30 can't rouse potential home buyers from
their cozy seat by the fire.
The good news is that home prices rose slightly,
reflecting some confidence from buyers and sellers that the houses have value, even if few people are
bidding. Median home prices rose to $220,500, about 6 percent from January and up more than 5
percent from the year before, according to the Commerce Dept.
Source: Housing Watch
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Copyright 2010