Archive for May, 2010

East End, Long Island Real Estate

May 11th, 2010 category: Real Estate NewsNo Comments »

Clam Bake WaterAs a real estate company on the east end of Long Island (Hamptons, North fork) that has been viewing the real estate market *as we now know it* with caution, it was very refreshing to find the following assessment offered by a “local” real estate participant- Michael’s link is at the bottom of this post.

With reports touting (did they, really?) “The market is back! The bottom has been reached!” for the last year,  reading a really honest assessment of the challenges faced by east end, Long Island sellers and their confused partners (buyers) was a refreshing perspective that we’d like to share.

True: the forecast (do we believe “forecasts?”) seems to be that interest rates will be rising.

For investors, a rise in interest rates creates this scenario: such a move will depress pricing FURTHER, as it eliminates market participants (buyers)- wait it out, this whole thing- prices will drop FURTHER.

While there is no doubt validity in that perspective, the other side of the coin, for those seeking A HOME that will be a place to LIVE for the next five to ten years, SO WHAT? Pricing on the east end has dropped anywhere from 20% to a reported 35% from the pretend *and it was, in hindsight, pretend* GLORY DAYS.

How long, with a family to raise, or a retirement to plan, does one wait out another 5%, give or take? Will pricing drop another 30-40%? If so, no one to date has made that forecast…but do we know for sure? NO.

Will prices rise for east end, Long island homes over the next 2-5 years? We don’t think so, but some disagree.

At what juncture does “a home because I love it” supercede “if it’s not a good investment, I’ll rent?”- only the person paying the mortgage can respond with authenticity.

If interest rates rise as predicted, we agree that the waiting period for a purchase (if a buyer is financing, waiting for further drops) has been erased *poof* as quickly as such rates increase. So, the question becomes: IS IT TIME TO BUY A HOME ON THE EAST END OF LONG ISLAND? 

Do your homework, or hire someone to do it: check the number of distressed properties that threaten your area of interest, creating a potential price drop; look carefully at the asking price of a home (particularly in the Hamptons, where properties are routinely overpriced, hoping for a NYC sucker with a big fat bonus) and CHECK CLOSED SALES. Not three month old public record sales, but LAST WEEKS closings.

We enjoyed the blog that can be found HERE, and hope that you do, too!

Oh- and if real estate companies used an MLS in the Hamptons, you could check out the closed pricing from yesterday, right this minute- just sayin’.

To view homes for saleon the east end (Hamptons, North fork) of Long Island, click here. To view REO/bank owned/foreclosures for sale on the east end of Long island, click here.

To view homes that have closed on the North fork of Long island very recently, click here, and then check off your town of interest- sold homes that have closed as recently as yesterday will appear, with sold pricing available.

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