Will LI homes keep dropping? Or have they hit bottom? (Babylon: loan, how much)

[Positiveone]

So what do you think? I no longer live there. So i'm curious do you feel the prices on existing homes on the market have it bottom price? Or will the prices keep droppping? I have heard some say how much lower can the LI homes drop, yet others say they may drop super low just to get out off of the Island!

[okaydorothy]

Well I was just talking to my neighbour. He put his house on the market july of 06 for $525,000.

Now it is still on the market and he would take what he paid for it almost 2 1/2 years ago which was $435,000. He is asking $480,000 now.

d

[clamboy]

Originally Posted by okaydorothy

Well I was just talking to my neighbour. He put his house on the market july of 06 for $525,000.

Now it is still on the market and he would take what he paid for it almost 2 1/2 years ago which was $435,000. He is asking $480,000 now.

d

I think theres some room to fall in Luxury/Trade Up

I think the price for admission startrer wise will remain Low 3s


C

[TomMoser]

Originally Posted by Positiveone

So what do you think? I no longer live there. So i'm curious do you feel the prices on existing homes on the market have it bottom price? Or will the prices keep droppping? I have heard some say how much lower can the LI homes drop, yet others say they may drop super low just to get out off of the Island!

The real problem is that prices have not dropped. Buyers are waiting on the sidelines in anticipation of a drop in prices. When they do, I expect to see a good 10% to 15%.

[clamboy]

Originally Posted by TomMoser

The real problem is that prices have not dropped. Buyers are waiting on the sidelines in anticipation of a drop in prices. When they do, I expect to see a good 10% to 15%.

Ive seen as much as 20% out here.

Where do you think they need to be for Start/Trade/Lux in Suffolk Tom?

C

[TomMoser]

Originally Posted by clamboy

Ive seen as much as 20% out here.

Where do you think they need to be for Start/Trade/Lux in Suffolk Tom?

C

Suffolk is a big place. I'll address my town, East Northport, and you can extrapolate from there.

Starter's now: 425-450
Should be: 350-375

Trade up now: 600-800
Should be: 525-650

Luxury now: Over 1MM
Should be: Who knows? This is East Northport. Never thought I'd see a house over a million!

[amyla]

Originally Posted by TomMoser

Suffolk is a big place. I'll address my town, East Northport, and you can extrapolate from there.

Starter's now: 425-450
Should be: 350-375

Trade up now: 600-800
Should be: 525-650

Luxury now: Over 1MM
Should be: Who knows? This is East Northport. Never thought I'd see a house over a million!

TomMoser. What's your take on the Dix Hills/Melville area?

[TomMoser]

Originally Posted by amyla

TomMoser. What's your take on the Dix Hills/Melville area?

Dix Hills is quite soft right now. That "move up" price range is really tough right now. And, which area in Dix Hills is becomming more important. People don't seem willing to pay for the "Dix Hills" address if it's in one of the outlying areas.

Melville (particularly the Triangle) is a little better.

[nancy thereader]

How about Babylon Village? How are they doig? (I'll be selling this spring.)

[NYC2RDU]

Originally Posted by TomMoser

Suffolk is a big place. I'll address my town, East Northport, and you can extrapolate from there.

Starter's now: 425-450
Should be: 350-375

Trade up now: 600-800
Should be: 525-650

Luxury now: Over 1MM
Should be: Who knows? This is East Northport. Never thought I'd see a house over a million!

I'm curious about your "should be" numbers. How did you arrive at those ranges?

Mind you I'm not saying their wrong; I wouldn't know because that's your profession and not mine. However I'm thinking about percentages and salaries and the like. If I apply the 20% down payment rule to those numbers a starter home would still require a fairly hefty mortgage. With the property taxes added in a starter home is still too pricey. And one rule I've always thought made perfect sense is to use your annual gross income as a yardstick. Ideally your loan amount shouldn't exceed twice your annual salary.

Someone would need to be making at least $125k per year in order to slot into a starter home and that's crazy.