The Future of Long Island Real Estate -- According to Whom?

Geri,

Great post! I couldn't agree with you more! This is an excellent time for buyers to get back on the market, especially on LI. Thank you!

While I agree that it's a great time for buyers to get off their duffs and buy - there is not doubt in my mind that home prices are going to drop an additional (at least 12%) over the next year. 

Geri - you can't refute the facts. 

• 33,000 listings throughout the island
• Bank Insolvency (this is a huge issue which is absolutely going to get much worse)
• Lending Restrictions
• Unemployment Increases (100% increase in Suffolk since January)
• Government spending and taxation that's off the charts
• Continued increases in bank foreclosures and short sales

To name just a few.

Look - I'm all for being positive, but I'm also a realist.  I'm certainly not going to argue with a buyer about prices continuing to drop.  Yes, they are.  But to that same buyer, I will tell him a few things:

1. Rates are HISTORICALLY LOW
2. Bank lending issues are going to cause them problems down the road to get a loan
3. What is on the market now (if they really like something) is down in price NOW.  If they hesitate, they take the chance that A. it will sell to someone else or B. the owner will remove it from the market and not sell until market rebounds (not everyone is losing their home).

Just to name a few key points.  Will they make a dent in a buyer's thick head (lol) - probably not.  But I see more buyers coming to play in a big way - now meet Bank Insolvency and you've got another set of problems.  I have a buyer right now, with 1 million in the bank, business owner with 900 credit score, assets, you name it - his debt/income ratios are "a little" tight and the banks have busted his chops for over two months on a 30% down deal (70% LTV). 

That's real.

Geri, despite all the negative media, recently I am also seeing a lot of optimism from buyers... More people asking questions and wanting to get into the market. Life happens, and people need a place to call home.... I, too, like to remain optimistic.:) 

Buyers are coming out all over the place in our area.  They know the tax credit isn't available forever and want to take advantage of the fabulous interest rates while they are so low.

A main challenge for us all is NOT to live (and die...spiritually) by what you hear in the media. I AM NOT IN A RECESSION - because I REFUSE TO PARTICIPATE!

That's my attitude!  Bring it on. 

But I'm also self-employed - running my own business. Most people live by what their employer can help them with.

Anyway - I had literally - 60 people at my last open house...hello!

Kind of like the weather forecasters. They are wrong half the time, too, if not more often.

The sooner we get people back to understanding that a home is a place to live, raise a family, retire in, and perhaps even die in, the sooner we'll get back to a stable real estate market. Unfortunately, I think we're past those days because there are simply too many people who see their homes as investments and cash machines.