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I have been keeping a close eye on the housing market for quite some time. Its gotten to the point now that I am seeing more and more listings sit on the market for months upon months.. There also seems to be a large inventory of homes with few buyers. My question is now that its a buyers market how long should i wait till I buy. My target area is massapequa and a price range of 400-475k. (Example )if i was to offer 450k on a house that is asking 490k and get accepted should I consider that a deal or will the market continue to drop as more people default on their ARM's and intrest only loans. What to do what to do?
I've been keeping an eye on the LI market as well - especially the Farmingdale/Massapequa area. I would very much like to move back from upstate NY. I am only 28, but I've been purchasing properties in NY since I was 23. I now own a bunch of rental properties in addition to my primary residence with hopes to liquidate in a few years and purchase a home in that area for cash and be able to live on my small salary. I've learned that as far as a primary residence, as long as you're not WAY overpaying and you plan to live in the property for a very long time, it really doesn't matter too much if rates are high and prices low, or prices high and rates low. As far as investments are concerned, that's a very different matter.
I had my eye on a property on N. Boston Avenue in N. Massapequa - right across the street fom my best friend's house (from high school). I wasn't planning to buy necessarily, but I used it as a model for what's happening in the market. It listed at first about a year ago at $459k. It just sold maybe a month ago for $409. I believe it sat on the market for about 9 months. Farmingdale is becoming more expensive and properties are moving a bit faster. When I lived there only a few years ago it was reversed. Massapequa was more expensive (North Massapequa and Massapequa Park not near the water, of course).
I personally believe that the market is correcting itself according to the reality of disposable income and the fact that salaries have not increased at the same rate as real estate prices. I'm hoping prices for the type homes that are now in the mid 400s will eventually be listed in the high 300s. or even a bit lower. When the prime rate hit all time lows, listings hit all time highs. I think people are still living in the thought that they can ask whatever they want like they could only 4 years ago or so. It's a slow process, though, because I'm noticing a lot of homes for sale are owned free and clear by retirees, and therefore they're not in a rush to sell.
I have a 5-year-plan, though, so who knows what things will be like in
2012. My parents suggest moving a bit farther out east. I like the south shore, so they suggested Patchogue and on. I'd rather be in Massapequa or Babylon near the water, though. Keep in mind that most of the homes you see in the various listings are in great shape and updated. There are homes that are selling for the high 300s low 400s that need updated kitchens, paint, and maybe a new garage door. My plan is buy a home that's very outdated but in great shape and in the location I want.
Keep in mind that we're just enetering the busy time of year for home sales/ purchases. It is certainly a buyer's market, but you may be better off waiting until next winter just before Christmas. Ultimately, if you find the house you really want, you can afford it, and you plan on staying it for a long time, I'd jump on it.
As far as ARMs and I/O loans, some are adjusting, but many people are simply refinancing. It's the negative amortization loans that are really killing people. The I/O loand that are adjusting ti regular PI payments will shock many, but I don't think we'll see the rash of forclosures so many are thinking will occur.
You also have to keep in mind the taxes also, further East the taxes are a lot less, my Aunt and Uncle just sold in Massapequa, they got 619,000 the house had a new kitchen, but the baths are 30 years old, the property was less than 1/4 acre and the taxes were close to 12,000 and no bsmt, one car garage.3 beds.
I was just looking on mlsli.com and saw a house in the Village of Farmingdale - the part nearest Bethpage - listed at $579k. Only a 6 weeks to 2 months ago it was listed for well over $600k. I think the shift is beginning. Taxes, though, are almost 14k!!!
It's funny: Property taxes are largely based on home value, so you'd think they wouldn't be on the rise so much. Have town services increased? Have current services improved? Nope. The budget just gets bigger at the expense of homeowners. I don't know what the NY State government thinks will happen if it stays on this path. At this point, my taxes in Albany are actually much more per thousand dollars than in Nassau County. The house I mentioned in F'Dale for 579k is $42 per 1k of value. My house is $50 per 1k of value - and I drive on HORRIBLE roads, have HORRIBLE city schools, live in acity with a HUGE government reliant population, and get fined for everything you can think of.
I live on LI. About a year ago, they knocked down the modest house next door, and up popped a "McMansion" like a friggin' mushroom. And...there it sits, vacant.
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