Who knows? Thus far in 2008, one third fewer houses have been sold in this area than in the same period in 2007. Prices are down in this area of Long Island, although not nearly as much as in other regions of the country. Mortgage rates have held relatively steady, although it is far more difficult to qualify for a mortgage, and the "comps" are considerably lower than last year. That means that a homebuyer needs better credit, needs to put a larger downpayment, and that lending institutions are much stricter about the amount they will value a house at, to determine how much they will lend.
Many are predicting that interest rates have dropped as much as the Federal Reserve will let it go, because while there are many economic challenges at the present time, the fear of inflation will probably prevent the Fed from letting interest rates drop further. It is important to remember that for many years mortgage rates rested at about 8 1/2%. Therefore, from a historical standpoint, we have been in an historically low mortgage rate period for many years. Nobody knows for certain how long that will remain, but many believe today's low mortgage rates are unlikely to remain low forever.
This situation offers great opportunities to anyone considering "buying up," because, although the house being sold will likely be below last year's levels, the house being bought will also, and if one is trading up, that combination, plus low mortgage rates, offers a fabulous buying opportunity.
For anyone serious about selling, it is essential to "price their house right from the start." Historically, the best offers are received in the first month after a house is listed on the market.
I call my marketing system RICH IDEAS because I combine a 22-POINT service guarantee, the ultimate in technological and cyberspace service, personal guidance and service, and realistic "right to sell" pricing.