How much lower is the housing market going to go on Long Island? (Hempstead: for sale, apartment)

[Mjeacoma]

Hey all - I am new to this forum and I must say I am super addicted! It isn't too often you find blatantly honest people talking about the things that we love and hate about LI! Anyway, My wife and I had a son a few months ago and are quickly growing out of our two bedroom apartment in Merrick. We have saved and are ready to make the plunge and buy a home. We have looked everywhere and have found quite a few houses in our price range but what about those that are a little higher?

As the title suggests my question is, how much lower is the housing market going to go on Long Island? Everyday I hear about how thousands of people are laid off here and there and everywhere and are selling their homes more and more and people just aren't buying or at least less people are buying. For instance we looked at a house in Wantagh and it is $359k (the house was SOLD to someone in 2005 for $590k) The house has been on the market for over 60 days and although the brokers say offers are in - I call bullsh*t. We would love to spend as little as possible (of course) but we don't want to buy a house and then find amazing deals around the block for $100k less, since the reality is that houses even 6 months ago have dropped considerably! I know it's all a gamble but I wanted to know your opinions. By the way we don't fall in love with houses so I don't buy the whole 'if you love the house than that's your answer, buy it now!' I guess it is all about the funky dollar bill for us right now.

we are looking in

Levittown (south of Hempstead Tpk)
Wantagh
Bellmore
North Merrick
Long Beach (beach side)

thanks everyone!

Mark

[rocafeller05]

If you can, wait till next year this time. I still think there is more room for prices to drop.

[Mjeacoma]

We were playing with the idea of renting for awhile longer...we are locked in at 4.9% so we can wait a little while....

[sassieskier]

Doesn't your lock expire?

[Mjeacoma]

Originally Posted by sassieskier

Doesn't your lock expire?

180 days from 3 weeks ago - hopefully we find something cheap in the next 159 days!

[S.I.B.]

some thoughts:
-Nobody (not even the experts) know how low prices are going.
-I have a hunch that prices will fall further...but Nassau County will experience a slightly softer landing than parts of Suffolk, so if you see something you really really like, you may want to jump on it.
-In the winter, there are typically less homes for sale...but there's also fewer buyers. You can likely use this to your advantage (lowballing someone despearate to sell)
-Even if prices keep on dropping, interest rates will likely rise a bit.
-the fact that you don't have to sell your current residence obviously works in your favor and gives you greater flexibility than other buyers. use that to your advantage.

[hotkarl]

I don't see it dropping much more than it already has, I think in most of the more "popular" towns, the prices will hold where they are, give or take a buck or 2.
By popular, I mean those with the more reputible school districts, etc...Basically all of the towns on your list. Go through the threads here, you'll get the "popular" oppinion as to which are the "better" school districts, HA!
No matter how good of a deal you get, you'll always see or hear of a better one the day after you close, so I think it's not a bad idea to buy now.
Eventually, the prices of houses will go back up, there is no doubt about it.

[budsvtec]

Mark are you following me?? Now is a good time to buy. No one knows what the future will hold. If things keep going the way they have been going with the economy, then yes the housing prices will probably go down some more. I think it will get worse before it gets better.

Scott

[I_Love_LI_but]

Originally Posted by rocafeller05

If you can, wait till next year this time. I still think there is more room for prices to drop.

I definitely second this. If you are only giving yourself 159 days to buy, you will definitely pay much more than if you wait until next year. Unfortunately, we have only seen the tip of the iceberg with the recession. There are heavy job losses predicted in the NYC area for Wall St. and for those in public service (even teachers). Current prices of home cannot be sustained and are still overinflated to begin with. The bubble is only partially deflated.

However, if you MUST buy now, since you are open to several places to live and are not stuck on just one or two, I would choose the place with the most homes for sale, since the sellers have the most competition. Then I would choose something and submit a very low offer (if it is obvious they were on crack when they decided the asking price) or a low offer (if the asking price is in a reasonable range) and let the seller respond and see what happens.

I noticed this in your posting:

We have looked everywhere and have found quite a few houses in our price range but what about those that are a little higher?

Please do not choke yourself and spend more than you can really afford! If you want "those that are a little higher" the best advice is to wait for now.

[budsvtec]

I agree. Do not spend more than you can afford. I know a few people that did this a few years ago and now they are in trouble.