Has anyone noticed the price drop in LI area? (New York: real estate, mortgages)

[newtoli]

Originally Posted by omigawd

Totally wrong.... LI is NOT one of the most affluent places in the country. Are you kidding me?!?!? It's not "affluent" nor is it "desirable". It may be a very expensive places to live, but it is, by no stretch of anyone's imagination, "affluent". Expensive and affluence don't always go hand in hand. It just means that everything on LI is overpriced.

There is no recent "rise" in prices; if anything, it's the exact opposite. The rise in prices from 10 years ago had NOTHING to do with the so-called "desirablitiy" of LI... it had to do with low interest rates. When rates drop, prices go up. When rates go up, prices go down. Simple.

If LI is so "desirable", then why are people leaving in droves for places like PA, NC, SC, etc. where they can live for a fraction of the price they would pay here???? Why the "Brain Drain" that News 12 is always talking about????

As for people paying 400K for a 175K house and therefore that house becoming "worth" 400K, you're wrong again. That 400K house, in today's market, is worth 320K if you're lucky. Why do you think there are thousands of people in foreclosure right now? They can't even re-fi because they're upside-down in their mtg because their homes have decreased in value. I used to work for a mtg company and I can tell you so many stories about this. People who bought homes out here 3 to 5 years ago thinking the prices were going to keep going up and getting ARMs or 3 year fixed rate mtgs, etc. Those people got totally screwed within the last year and many of them lost their homes.

Back to the issue, though. NOTHING on LI makes an average house here worth 400K. People who are ignorant and pay that amount lean their lesson the hard way.

It is one of the most affluent areas in the country

Richest counties with a population of 250,000 or more
Rank City Median household income, 2004
1 Fairfax County, VA $83,975
2 Somerset County, NJ $84,892
3 Morris County, NJ $83,583
4 Montgomery County, MD $82,971
5 Howard County, MD $82,065
6 Nassau County, NY $78,762
7 Prince William County, VA $77,678
8 Monmouth County, NJ $77,223
9 Rockland County, NY $75,306
10 Santa Clara County, CA $74,509
11 Fairfield County, CT $73,110
12 Chester County, PA $72,288
13 Suffolk County, NY $71,956
14 McHenry County, IL $71,153
15 Bergen County, NJ $70,957
16 Norfolk County, MA $70,903
17 Lake County, IL $70,347
18 Middlesex County, NJ $70,344
19 DuPage County, IL $70,174
20 Westchester County, NY $70,095

[omigawd]

Those rankings don't mean much. I highly doubt your average LI family is making over 70K. There is a ton of poverty on LI, not to mention the "working poor" (who used to be called the "middle class")

Can you post a link to the site you got the stats from?

If you're talking about areas like Manhasset, Sands Point, etc. that's one thing. Yes, those are very affluent POCKETS of LI. However, the vast majority of LI doesn't live like that. To the contrary, most families live hand to mouth, paycheck to paycheck.

[brassbin]

to both andy & newtoli, may i assume all the driving you've been doing were outside of so called peek rush hours

[newtoli]

Originally Posted by brassbin

to both andy & newtoli, may i assume all the driving you've been doing were outside of so called peek rush hours

Yes, I generally go into Manhattan Weekend nights.

I don't work in the city, thats not why I moved to LI. I pay a premium to be close to one of the largest cities in the world! Even during peak rush, I can get in on the train very easily. I need to be within a close range of a large city and will pay for it.

[newtoli]

Originally Posted by omigawd

Those rankings don't mean much. I highly doubt your average LI family is making over 70K. There is a ton of poverty on LI, not to mention the "working poor" (who used to be called the "middle class")

Can you post a link to the site you got the stats from?

If you're talking about areas like Manhasset, Sands Point, etc. that's one thing. Yes, those are very affluent POCKETS of LI. However, the vast majority of LI doesn't live like that. To the contrary, most families live hand to mouth, paycheck to paycheck.

It's pretty well known that we are one of the richest parts of the country. If you want to talk hand to mouth, look at places like Appalachia and the rust belt.

Here you go: http://money.cnn.com/2005/08/30/pf/c...ings/index.htm

I'd find CNN Money to be a pretty reliable source, but if you check online, you'll find plenty of other rankings.

If I worked in the city, it would take me an hour to an hour and a half door to door. My Aunt lives way upstate where housing is cheap, but has to drive an hour to her job because the area is not very populated.

It's a trade off wherever you go.

[ClarkStreetKid]

That affluent area is bordered by two of the poorest counties in the US with a pop. over 250,000, Kings County (the most populous county in New York State) and Bronx County.

[Glad2BHere]

Originally Posted by omigawd

There is no recent "rise" in prices; if anything, it's the exact opposite. The rise in prices from 10 years ago had NOTHING to do with the so-called "desirablitiy" of LI... it had to do with low interest rates. When rates drop, prices go up. When rates go up, prices go down. Simple.

If LI is so "desirable", then why are people leaving in droves for places like PA, NC, SC, etc. where they can live for a fraction of the price they would pay here???? Why the "Brain Drain" that News 12 is always talking about????

Back to the issue, though. NOTHING on LI makes an average house here worth 400K. People who are ignorant and pay that amount lean their lesson the hard way.

It is quite the reverse of what you said. Actually people who move to NC or FLA or PA who want to come back learn the hard way. They are then priced out. I know a few friends and family who all were unhappy in other states and just were unable to come back, esp b/c they could not sell their homes in their new states. In North Carolina or PA, there are so many houses, exactly alike, and so many new developments that a lot of people who bought there are now stuck b/c they cannot find anyone to buy their home. That doesn't happen in LI ever. So that obviously means LI is desirable.

I have friends who bought in NJ, by PA. They moved due to a job opportunity only. They cannot sell their home b/c there is NO demand for homes where they bought. They will only lose money if they sell now and they are miserable and desperate to come back to LI. Actually only left hoping to earn money, when all they did was lose money now.

So LI is actually VERY desirable and the prices are about demand more than low interest rates. The interest rates aren't that low anymore and prices keep climbing in desirable areas of LI. LI is close to Manhattan and easily accessible by train for the most part and that will always keep LI desirable and the prices high. So you can't go wrong buying a house here.

Many people leave LI for NC or PA and are very disillusioned. When they get there and realize the schools are horrible and the crime is worse than they thought and they miss their family and friends, they long to come back but are totally priced out or just can't find a buyer for their house so easily as they would have here...

[Glad2BHere]

Originally Posted by omigawd

Those rankings don't mean much. I highly doubt your average LI family is making over 70K. There is a ton of poverty on LI, not to mention the "working poor" (who used to be called the "middle class")

Are you saying that average families are making less than 70k? Every single person I know, even in civil service jobs, make way more than 70k, and way more than 100k if both husband and wife work.

I would think at least 70k is what most families living on LI make or they would have to leave. And I don't know anyone leaving in droves that is for sure.

[ClarkStreetKid]

Originally Posted by Glad2BHere

It is quite the reverse of what you said. Actually people who move to NC or FLA or PA who want to come back learn the hard way. They are then priced out. I know a few friends and family who all were unhappy in other states and just were unable to come back, esp b/c they could not sell their homes in their new states. In North Carolina or PA, there are so many houses, exactly alike, and so many new developments that a lot of people who bought there are now stuck b/c they cannot find anyone to buy their home. That doesn't happen in LI ever. So that obviously means LI is desirable.

So LI doesn't have a housing surplus and houses sell in a month? Good on ya LI!
Pass that egg nog over this way.

From the Long Island Index...

For example, almost 70% of households on Long Island earn less than $100,000. In 2000, over 60% of the homes sold were affordable to this income bracket. By 2006, less than 2% of the single family homes sold were affordable for these families.

http://www.longislandindex.org/index.php?id=109

[Glad2BHere]

Originally Posted by ClarkStreetKid

So LI doesn't have a housing surplus and houses sell in a month? Good on ya LI!
Pass that egg nog over this way.

Well of course not all houses sell in a month. Town and location are a big factor when it comes to selling any house, even in LI.

Houses that DO sit are usually b/c the owner is being greedy and wants a huge amount, just more than a buyer is willing to pay. And most of these sellers already made a killing on their house and then some. But they figure they will let it sit and they will eventually get the $ they want.

When a house is priced right, (even if it still a high one), there is always someone who wants your house in LI. It is all about being priced accordingly and not being greedy when your house doesn't sell as quickly as the next.