Has anyone noticed the price drop in LI area? (Garden City: buying a home, neighborhoods)

[TomMoser]

Originally Posted by newtoli

For all I know, my house could be worth less that what I paid right now (I bought a year and a half ago).

But we made sure we had a fixed loan with a payment we could afford... I'm not going to let my house go into foreclosure simply because it could be worth less more than I paid for it on paper... that shouldn't matter until it's time for me to sell in a few years.

People just need to go back to looking at buying a house as a place to live, long term investment, instead of an instant equity ATM, move in 2 years and make $200k on the deal!

I absolutely agree with this sentiment. I have said it many times on these boards. I bought my home in the late 1980's, by the early 90's I was underwater with my mortgage. But, since I could afford to live there, I stayed. Eventually, time bails you out with real estate. The big problem today is the adjustable rate mortgages. Many people counted on home prices continuing to rise dramatically and when they did not, they got stuck. They can't afford their payments after the adjustment, plus, because the value of their home has fallen, they cannot refinance their way out.

[Jrprofess]

Originally Posted by TristansMommy

The neighborhoods like Levittown are a prime example of what Tom is speaking of. MOstly first time homebuyers.. young famiilies squeezing into their homes. I've watched priced come down dramatically in my neighborhood leaving me at 100%LTV or even worse.. upside down. There are currently 222 homes for sale in Levittown (although only about 50 in Levittown in my home's SD).

Having lived in Queens/Nassau/Suffolk I feel that the logic of a foreclosure spike in Suffolk is due to much of the reason we ended up out here as first-time buyers...pushed by price and home size out east. Suffolk has always been more affordable due to its distances from the city,etc. Not to say what is better or worse, that depends on your family situation, but more first time home buyers most likely found there way to Suffolk to afford the homes and taxes and might have stretched into their home on an ill-thought adjustable rate. Same goes for neighborhoods in any county where maybe some recent immigrant families from the city and/or first generation went into a home without enough education on the market and mortgages.

Either way as it concerns the price drop, I always find it funny how when people were benefitting from these tremendous run-ups in price they never thought it was nearly as irrational as a potential decline of maybe even half of that run-up.... When I sold and benefitted from the bounce I did not offer to give some of the equity back, so if I were to sell my current home of 3+ years at a modest "loss" relative to my purchase price you have to keep the hysteria in perspective. The market is correcting the concept that a 3BR ranch in Kings Park should not cost close to half a million dollars. I see it as healthy, and might keep some young couples here instead of having to look elsewhere.

[TristansMommy]

Originally Posted by TomMoser

I absolutely agree with this sentiment. I have said it many times on these boards. I bought my home in the late 1980's, by the early 90's I was underwater with my mortgage. But, since I could afford to live there, I stayed. Eventually, time bails you out with real estate. The big problem today is the adjustable rate mortgages. Many people counted on home prices continuing to rise dramatically and when they did not, they got stuck. They can't afford their payments after the adjustment, plus, because the value of their home has fallen, they cannot refinance their way out.

Tom..that's all well and good.. but for some the first home buyer isn't buying the home they will stay in for the next 20 or so years. It's a stepping stone into that home. For me, my house is small and was supposed to be my stepping stone into my final home (which, btw, isn't going to be in NY.. plan was to take the money from this home here that we paid so much for and buy a much bigger home on more land for a fraction of the price). But alas..I bought at the wrong time!!EECKK>>>

[KellyFG]

I'm chiming in late here. to answer the OPs question-yes prices have dropped at varied rates across LI. I own the house we live in as well as a few investment properties & we are constantly looking for more so I watch the MLSLI, foreclosure & short sale lists & speak to REAs regularly. What I have found is interesting. The area I live in is Eastern Suffolk-north shore, sale prices in my area have decreased only slightly but inventory is growing & houses are sitting longer. Some of the "desirable" south shore nassau towns with good train access have dropped an easy 100k with no sign of leveling off. one of the towns I have a house in is considered a "bad" area & the prices are way down on the crappiest of properties but since that area never appreciated to the insane overinflated zone that others areas did the hit has not been that bad. The percentage drop is much lower there will always be first time investors & low income owners looking to buy there.

BTW reality trac admits often that their stats are often wrong or erroneous in some way.
If you read the public notices in our local papers as consistently as I do you'll know that there are MANY foreclosures in Nassau & suffolk & often in the most desirable areas. The unfortunate thing from an investor perspective is that because these houses have loans on them that are so inflated due to the problem perpetuated by stupid homeowners, greedy mortgage salespeople & shady appraisers buying these homes on the court house steps is a waste because there is no way to come close to producing positive cash flow at the price it costs to get them.
Things here will take YEARS to correct completely.
My husband & I congradulate ourselves everyday for buying a beautiful 5 bedroom/3bath home we love in a neighborhood we adore for $250,000 in 2004.

[TomMoser]

Originally Posted by TristansMommy

Tom..that's all well and good.. but for some the first home buyer isn't buying the home they will stay in for the next 20 or so years. It's a stepping stone into that home. For me, my house is small and was supposed to be my stepping stone into my final home (which, btw, isn't going to be in NY.. plan was to take the money from this home here that we paid so much for and buy a much bigger home on more land for a fraction of the price). But alas..I bought at the wrong time!!EECKK>>>

It's a funny thing. We, too, thought our home would be a "starter". Here we are 20 years later. A couple of years ago we almost sold and traded up to a much larger home. Then we thought about it. In a few years the kids would be gone and we really didn't need that huge home. Sometimes things just work out.

[cricketfan]

The problem with alot of folks on LI is that they think that LI is Utopia. I keep hearing the word "desireable" as if there is no other place that comes close to LI. The fact is that if you are struggling financially to live in a certain place then it is no longer desireable. Alot of people consider LI desireable because of the proximity to Manhattan. Big deal! Sure, you can make more money working in a big city and spending half of your life on the LIE. But what's your bottomline after all your big city living expenses? What's your quality of life?

I know people on LI who were suffering and had the opportunity to sell their homes at a fair price a year ago. But they always had a certain sentimentality about living in NY and living close to NYC. After all, NYC is supposed to be the greatest city in the world. But it is the affluent people who can afford to be sentimental about LI, not the poor sucker that is trying to stay above water.

The most important thing in life is to be HAPPY. Problem is people don't believe that they can be happy if they move out of high-taxed, high cost-of-living LI. Chances are you may end up earning less but spending less, so at the end of the day it's all even. I made the decision to cut loose a year ago and I gotta tell ya, I have no regrets today. No turning back for me!

[Jrprofess]

Originally Posted by cricketfan

The problem with alot of folks on LI is that they think that LI is Utopia. I keep hearing the word "desireable" as if there is no other place that comes close to LI. The fact is that if you are struggling financially to live in a certain place then it is no longer desireable. Alot of people consider LI desireable because of the proximity to Manhattan. Big deal! Sure, you can make more money working in a big city and spending half of your life on the LIE. But what's your bottomline after all your big city living expenses? What's your quality of life?

I know people on LI who were suffering and had the opportunity to sell their homes at a fair price a year ago. But they always had a certain sentimentality about living in NY and living close to NYC. After all, NYC is supposed to be the greatest city in the world. But it is the affluent people who can afford to be sentimental about LI, not the poor sucker that is trying to stay above water.

The most important thing in life is to be HAPPY. Problem is people don't believe that they can be happy if they move out of high-taxed, high cost-of-living LI. Chances are you may end up earning less but spending less, so at the end of the day it's all even. I made the decision to cut loose a year ago and I gotta tell ya, I have no regrets today. No turning back for me!

Sounds like your decision worked out for you, but I gotta tell ya, I am really growing tired of everyone posting about REAL life happiness and how horrific LI is (and how all long islanders think irrationally about it being the center of the universe, Manhattan is next door, I can't leave the pizza...blah blah blah).

It is arrogant to post that you are somehow more enlightened then those of us who choose to live in this area...as if all Long Islanders are dim-witted morons or are only happy if they are affluent. I am middle class and happy here. I was not born in this region and have been in the area for about ten years. If you are truly espousing that people should simply focus on happiness in their life then why get on a discussion board and generalize about a location and its residents. There are over 3 million people on long island...some of them are happy here...you were not; great for you. But I fail to see the benefit of coming to vent and stereotype about a region that wasn't working for you...sounds like you might have some pent up angry...maybe you are not so happy

[newtoli]

Originally Posted by Jrprofess

Sounds like your decision worked out for you, but I gotta tell ya, I am really growing tired of everyone posting about REAL life happiness and how horrific LI is (and how all long islanders think irrationally about it being the center of the universe, Manhattan is next door, I can't leave the pizza...blah blah blah).

It is arrogant to post that you are somehow more enlightened then those of us who choose to live in this area...as if all Long Islanders are dim-witted morons or are only happy if they are affluent. I am middle class and happy here. I was not born in this region and have been in the area for about ten years. If you are truly espousing that people should simply focus on happiness in their life then why get on a discussion board and generalize about a location and its residents. There are over 3 million people on long island...some of them are happy here...you were not; great for you. But I fail to see the benefit of coming to vent and stereotype about a region that wasn't working for you...sounds like you might have some pent up angry...maybe you are not so happy

Well Said! There is so much bitterness towards this area from people who have left Long Island. Just because you didn't like the area anymore, doesn't mean that other people living here don't! I've been here for 2 years and love it. I'm also middle class, and make it just fine.

I also personally know 3 people who moved to FL and came back after 2 years because they didn't like it.

[Glad2BHere]

Originally Posted by newtoli

Well Said! There is so much bitterness towards this area from people who have left Long Island. Just because you didn't like the area anymore, doesn't mean that other people living here don't! I've been here for 2 years and love it. I'm also middle class, and make it just fine.

I also personally know 3 people who moved to FL and came back after 2 years because they didn't like it.

ITA

Same here. I also know people who moved to NC/Fla and were dying to come back. Over 4 different families who don't know each other, all felt the same thing.

[TeaJay]

Originally Posted by Glad2BHere

ITA

Same here. I also know people who moved to NC/Fla and were dying to come back. Over 4 different families who don't know each other, all felt the same thing.

My husband and I moved off LI almost three years ago. We are still in the NY metro area, but we thought we'd like the quieter way of life and more rural feel of Putnam County. And we do like here, but when you have a small child it's no longer charming to have to drive almost 15 minutes to get to a grocery store. I don't miss the traffic and crowds at the mall, but I do miss the convenience of having the necessities nearby. Needless to say, we are going to sell our house and move back as soon as we can.

For us, a lot also has to do with the fact that neither my husband or I are outgoing- we really have not made friends here and we really miss our friends and relatives on LI.