Home Prices on LI? (rental, lenders, home sales)

[ClarkStreetKid]

Originally Posted by scottzilla

Job situations are always at risk. When the economy is doing GREAT large corporations lay off 12000 workers so they can move to China.
No different right now than 5 years ago, or even 10 years ago.

You're right, things are just as they've always been. Same as it ever was.

Originally Posted by scottzilla

Earning power? I assume you mean "How much they get paid". How has it been reduced? My salary has not been reduced-it's gone up.

Earning power is the ability of a person to generate profit from their labor. You're salary goes up, but if inflation also rises, for example, you're getting nowhere.

Originally Posted by scottzilla

Debt. Yes, it's called a mortgage and has no revelence to buying now, last year or next.

Well it actually does, as one has to pay off that debt or default on it. Tighter job market and less earning power put that at risk.

Originally Posted by scottzilla

No offense but every reason you stated has no refection on buying a home NOW. All of these factors have to be weighed regardless of when you buy a house. If you can figure out a way to avoid all of these potential disasters for THIRTY YEARS more power to you. The best way would be to NEVER buy a house.

None taken, but those reasons do effect a person's decision if they should buy a house now, or whenever. A house requires taxes to be paid, maintenance and repairs to be made and on occasion something catastrophic needs to be handled. They are not money making machines. If you don't have adequate cash flow and reserves then a home could easily drive you further into debt than just your mortgage. FWIW, I own a home, several cars, have a good deal of money saved up and no debt. Guess I figured a way to avoid a lot of those disasters.

[SilverBulletZ06]

Originally Posted by scottzilla

Can you point to any data indicating houses on LI are overpriced??
Really, I would like to see this info if you can provide it. Don't feel bad if you can't because it really doesn't exist. As stated earlier, the median price for LI is up 1% over last year.
If you folks are gonna keep whining at least have some actual numbers to whine about.
So the $100,000 would have made me a grand. Nice.
Doesn't really matter as homes generally took on average FOURTEEN YEARS to reach an LTV that allowed PMI to be dropped. 14 years. So you want to buy a house and see $100,000 growth every year, huh?
What do you drive? You do realize your car is the worst investment you could possibly make (Other than just giving me all your money), yes? Food is even worse-you just crap it out. It's worthless.

A 1% increase is less then inflationary (typically 3%) so a 1% rise, assuming I believe that but I'm looking mid-eastern suffolk and everything is decreasing, is actually a relative decrease in price just not an absolute decrease.


As for LI being overpriced. Thats easy, it is. Median income vs. home costs is way over the normal ratio for the rest of the country. There are very few areas above us considering we're in the top 2% of most expensive counties. Our taxes, Nassau and Suffolk are both in top 15 most expensive and depending on study both are in the top 10. Its like making $1.50 but needing to pay $2 for a $1 hamburger, your still losing. Thats not even getting into land parcel sizes, home ages/amenities, etc.

[ClarkStreetKid]

Add into that the 100,000 isn't available for other uses and to get the 1G out you have to sell the darn thing.

[Quick Commenter]

At about this time a real estate broker will be chiming in to assure us that the housing decline has flatttened out and they have already seen signs of a revovery. And that real estate remains an excellent long term investment. Let's face it, if you bought and sold within the last 7 years you lost. Many hopeful sellers are still completely unrealistic and are still setting prices based on what they still owe on their houses as opposed to market forces...which is why homes are essentially not selling. The market continues to head down down down and putting you money into a purchase of a home is a risky proposition.

[Jetties]

Originally Posted by Quick Commenter

At about this time a real estate broker will be chiming in to assure us that the housing decline has flatttened out and they have already seen signs of a revovery. And that real estate remains an excellent long term investment. Let's face it, if you bought and sold within the last 7 years you lost. Many hopeful sellers are still completely unrealistic and are still setting prices based on what they still owe on their houses as opposed to market forces...which is why homes are essentially not selling. The market continues to head down down down and putting you money into a purchase of a home is a risky proposition.

We bought in 2004...but we also sold in 2004 so we are ok, though definitely took a hit since 2007 or so. We are here long term so who knows. Taxes hurt fo show.

[MikeyKid]

Originally Posted by scottzilla

Can you point to any data indicating houses on LI are overpriced??
Really, I would like to see this info if you can provide it. Don't feel bad if you can't because it really doesn't exist. <snip>

Here's your data... According to NAHB/Wells Fargo Housing Opportunity Index (HOI) LI is overpriced.

NAHB/Wells Fargo Housing Opportunity Index (HOI)

Long Island ranks #211 out of a total of 222 areas ranked by this index.

[TheLists09]

Originally Posted by MikeyKid

Here's your data... According to NAHB/Wells Fargo Housing Opportunity Index (HOI) LI is overpriced.

NAHB/Wells Fargo Housing Opportunity Index (HOI)

Long Island ranks #211 out of a total of 222 areas ranked by this index.

I have to say I'm a little disappointed that we couldn't make the bottom 10. So close. I think a few more multi million dollar football fields for high schools can get us there.

[scottzilla]

Originally Posted by MikeyKid

Here's your data... According to NAHB/Wells Fargo Housing Opportunity Index (HOI) LI is overpriced.

NAHB/Wells Fargo Housing Opportunity Index (HOI)

Long Island ranks #211 out of a total of 222 areas ranked by this index.

Ah, pie charts and graphs.
OK, so there are 11 areas that are ranked less affordable than LI?
We are a Suburb of one of the most expensive cities on the planet.
I'm pretty sure we established LI home values are on par with what other areas within a 50 mile radius of LI cost.
I understand you are in a constant mode to defend your decision to move off of LI, can you tell me what houses are supposed to cost on LI?
Remember to take in to account a year of RE transactions that resulted in a 1% gain in resales when you answer.

[Elke Mariotti]

MikeyKid, to me, your chart is meaningless unless you can show the same chart with information from say five, ten or even twenty years ago.
I may be wrong, but as a long time Long Island resident, I would venture to say, Long Island's affordability standing hasn't changed much, if at all.

Any chance you can get those (official) comparative charts? I'm always willing to learn!

[MikeyKid]

Originally Posted by scottzilla

Ah, pie charts and graphs.
OK, so there are 11 areas that are ranked less affordable than LI?
We are a Suburb of one of the most expensive cities on the planet.
I'm pretty sure we established LI home values are on par with what other areas within a 50 mile radius of LI cost.
I understand you are in a constant mode to defend your decision to move off of LI, can you tell me what houses are supposed to cost on LI?
Remember to take in to account a year of RE transactions that resulted in a 1% gain in resales when you answer.

Not defending anything... I just remembered seeing that Index referenced in an article, saw someone looking for data and responded. Take a moment and read through it, I think you'll understand that you're actually making the point being overpriced with "Suburb of one of the most expensive cities on the planet".

The Index uses what most people agree is the key factor in affordability - income to home values. So when only 54.5% of home sales are "affordable" to the median income of the area (somewhere in the 2.5 to 3x range), you either need a big raise or find a cheaper house when your median income is 100k to the median home sale of 375k. With those numbers you can keep your 1%, property taxes more then eat through that.

BTW - the areas below LI on the index:

212 - Bridgeport-Stamford-Norwalk, CT
213- San Jose-Sunnyvale-Santa Clara, CA
214 - Ocean City, NJ
215 - Laredo, TX
216 - Santa Cruz-Watsonville, CA
217 - San Luis Obispo-Paso Robles, CA
218 - Santa Ana-Anaheim-Irvine, CA
219 - Honolulu, HI
220 - Los Angeles-Long Beach-Glendale, CA
221 - San Francisco-San mateo-Redwood City, CA
222 - New York-White Plains-Wayne, NY-NJ