With the final numbers in for 2011 we can characterize the real estate market in Long Island as stabilizing. Nassau County finished the year with an up month in December (over 2010 figures) and the 4th quarter ended with just 33 less houses under contract than last year's 4th quarter. Year to date Nassau County ended 4% under last year's total under contracts. Suffolk County did less well with a 7% drop year over year.
Prices were not stabilized yet with median home prices in Nassau declining 2.5% from $395,000 to $385,000. Suffolk County was down 6.5% with median prices declining from $325,000 to $305,000.
We need more activity and less price pressure from short sales and REO's to see any significant movement in prices and that is not in the cards for this year. Sales activity in 2012 should improve over the last 2 years low levels - undoubtedly a higher percentage of sales this year will unfortunately be short sales.
If you waited for the past 2 years to sell you home -hoping for improvement - you lost 10 -15% waiting. You probably won't lose more than a few percentage points waiting this year but if you have some place to go - not reason to wait to go there. The prices there will probably be just as depressed as here.
If you waited during the past 2 years to buy - you saved 10-15% but paid rent and didn't get any tax advantages. If you can get a mortgage and your job situation is stable or improving this might be the best year to buy. Both interest rates and prices have brought the affordability index to a low you probably won't see in your lifetime.
Tune in next month for the first look at 2012 statistics.
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