Why are home prices falling in Garden City? Relative to other areas? (Hempstead: real estate, houses)

[Drwhitefps]

We've been looking for a home for over a year, and it seems that homes in GC are falling much faster than other areas such as Manhasset and Port Washington. Even the prices in Rockville Centre seem to be staying stable. Any thoughts?

[twingles]

Delayed reaction. Skyrocketing taxes. Lots of crappy homes that need a ton of work, and buyers just aren't putting up with it anymore.

When we were looking at home back in the mid-90s, homeowners in GC were the worst offenders for not keeping up with their homes.

A lot of houses that were selling for around $1 million 5 years ago are really not that big either. They may look big from the outside, or they are in the Estates section, but get inside and it's like the space disappeared. Buyers have wised up to that too.

I also think that when people sell, they want to sell quickly....if you've got someone who has been in their house in GC over 10 years, they probably are still going to make money even if the price has dropped from what it was a year ago or 3 years ago. So they aren't going to let it sit and sit.

Our former neighbors just sold their house for $100K less than we did - totally comparable to our old house and with a nicer yard. But they've been in that house almost 20 years - they aren't losing money on the deal by any stretch.

[hob333]

What are your impressions based on? Not quite sure if this is really the case.

However, I will say that after looking at houses last year, my impression is that the realtors in GC - as compared with Manhasset and Port W - almost never price a house to sell quickly. They almost always start with an asking price that is more suited to 2007, and then reduce 20, 30 or 100k at a time. In some instances, there is no cutting from the 2007 price, and the house just lingers on the market six months and is then taken off without a sale.

[scottzilla]

I think this shows a definite economic shift for Garden City, probably fueled by While Flight.

[JCNNY]

Originally Posted by twingles

Delayed reaction. Skyrocketing taxes. Lots of crappy homes that need a ton of work, and buyers just aren't putting up with it anymore.

When we were looking at home back in the mid-90s, homeowners in GC were the worst offenders for not keeping up with their homes.

A lot of houses that were selling for around $1 million 5 years ago are really not that big either. They may look big from the outside, or they are in the Estates section, but get inside and it's like the space disappeared. Buyers have wised up to that too.

I also think that when people sell, they want to sell quickly....if you've got someone who has been in their house in GC over 10 years, they probably are still going to make money even if the price has dropped from what it was a year ago or 3 years ago. So they aren't going to let it sit and sit.

Our former neighbors just sold their house for $100K less than we did - totally comparable to our old house and with a nicer yard. But they've been in that house almost 20 years - they aren't losing money on the deal by any stretch.

Couldn't agree more. I'm from Garden City and I second that there are many people here that do not keep up with their homes (e.g. kitchen that hasn't been renovated in more than 20-30 years). It's also true that several years ago many houses in Garden City were selling for $1 million and were not even that big.

I think another reason why Garden City was overpriced because of its location and amenities. Unlike Manhasset and Port Washington, Garden City is centrally located. You can easily access the North and South Shore from Garden City, it is close to both Jericho and Hempstead Turnpike, and is right next to Roosevelt Field Mall and all the shopping on Old Country Road. Garden City also has 5 LIRR stations that are walkable. Compared to its neighboring towns, Garden City is slightly more spacious and has wider roads as well. Garden City also has huge village pool with two water slides, an adult and kitty pool, food court, and mini golf.

Nevertheless, Garden City was still overpriced and I agree that too buyers have wised up to that in recent years.

[Interlude]

GC has never cost more than Manhassett.

[twingles]

Originally Posted by Interlude

GC has never cost more than Manhassett.

That's true....when we sold last year we had quite a few potential buyers who were from Manhasset. I was curious about this and looked for comparable homes to mine on MLSLI.com and they were priced a good $100-200K above mine and many needed work.

GC is more convenient but Manhasset is the north shore.

[Forest_Hills_Daddy]

How would a buyer in GC know if the price offered is too high? What would be the basis of comparison?

[twingles]

That's a tough question to answer...I lived there 13 years and really paid attention to home prices. It would be easy for me to say when seeing a house whether I think it's overpriced or not, just from knowing the village so well. I would take into consideration how many BRs the house has, the current taxes, and the condition of the home.

I looked on MLSLI.com before and I'm surprised how many houses there are under $600K. Some of them are in good locations, etc....it looks like there has really been a big drop the last 6 months.

I think buyers are looking at what people paid. If someone paid $1 mil for a 3 BR house in 2006, I think buyers are thinking that's going to be a tough negotiation now. That house just isn't worth that much (probably never was).

[I_Love_LI_but]

Originally Posted by Forest_Hills_Daddy

How would a buyer in GC know if the price offered is too high? What would be the basis of comparison?

That's Real Estate 101 -- and applies to a buyer anywhere

Comps -- as in comparing the price to recently sold similiar homes in the same area.

This is a good book to read before you purchase your first home:

Amazon.com: Home Buying For Dummies, 4th Edition (9780470453650): Eric Tyson, Ray Brown: Books