At the end of April (when the tax credits expired) the interest rate was hovering around 6%.you would have spent much more than the $8000 Tax Credit for 1st-Time Homebuyers – many times over!

My friend Rob Levy, a top-producing agent from Portland, OR (and a fellow member of the CyberProfessionals) shared a great article he wrote on the impact of lower interest rates on the housing market.   I liked his approach and it prompted me to write this post.  I added and changed some information and details to reflect our housing market on Long Island.  The examples given do not include property taxes – only principal and interest.  You would need to add the monthly cost of property taxes for any particular home to the monthly principal and interest to know what your total monthly payment would be.

Is now a good time to buy a home?  Even if prices drop some more?  Consider this – If you buy a home for $400,000, and for this illustration obtained a $400,000 mortgage for the property – and that home drops 10% the next year – you lost $40,000.   Easy enough to figure.  But if the mortgage you obtain today cost 4.25% and the one available in a year cost 6 % – then the difference in the total cost of that home is a lot less if you purchase a home now.  $400,000 @ 4.25% = Monthly Payment of $1,967.76 vs. $400,000 @6% = monthly payment of  $2,398.20 – for a difference of $430.44 – Each and Every Month!  For a 30-year mortgage that difference in the finance charge adds up to $154,960.74.  And one thing is a “given” – when the economy improves, interest rates will rise.

And what about the “Housing Tax Credits” which expired April 30?  Did you mess up by not taking advantage of that opportunity?  Not really.  About that time in April interest rates were hovering around 6%.  The Cost of the Home – even with the tax credits – would have cost more in April than today with the historically low interest rates available. 

Despite what you’ve heard, homes are selling – and this is a great time to buy a home.  The bottom line is “How much is it going to COST to Pay for the home?”  It’s not just the purchase price that has to be considered – but the total cost of paying for it, and for most buyers that means the cost of financing a home.  Check out the financial calculators on my website to do your own estimates.

For more information – or any questions Contact Cheryl at cheryl@liagent.com or 631-493-0542.  Search the MLS for all homes available on Long Island at www.LIagent.com.

The July 2010 Housing Market Report from the Long Island Multiple Listing Service has some mixed news.

Between January and July of this year the total number of closed sales on Long Island has significantly exceeded closed transactions reported during the same time period in 2009.   That is a result of the tax credit which was very effective in stimulating the housing market. However, as expected, now that the tax credit has expired, Long Island contracted sales have posted a 17.3 percent decrease from July 2009.  There were 2,386 purchase agreements signed in July 2010 compared to 2,886 last July.  This could be explained by the many would-be summer time buyers accelerating their purchases to take advantage of the tax credit.

In July, contracted home prices on Long Island were up and down amongst the three counties.  Contracted home prices is a forward-looking indicator since it represents what deals have been recently written, not what deals have been closed.   The July 2010 contracted median home price in Nassau County was $410,000 which represented a 2.5% increase over last July.  In Suffolk County, the July 2010 contracted median home price slipped to $325,000, compared to $335,000 a year ago.  Queens reported a contracted median home price of $350,000 which is 2.8 percent less than a year ago.

Industry experts predict that home sales in the short term are expected to slow before picking up later in the year providing the job market improves.  Joseph E. Mottola, MLSLI CEO says, “To sum up the local housing market, would be to say that it is really trying to hold its ground until the job situation improves. Only after the employment picture begins to brighten will a stronger demand for housing be restored.”

For more information about the market in your area – or to request a Free Market Value Report for your home please Contact Cheryl Grossman.  To view all homes on the LI Multiple Listing Service go to Cheryl’s Web Site.

The Dix Hills, Melville, Half Hollow Hills School District 2010, January-June, Bi-Annual Housing Market Report looks at the data from several perspectives.  What is happening now in the local housing market, how that data compares to past market activity and what those indicators actually mean when evaluating future market trends.

In their May Housing Market Report, the MLS of Long Island overall showed a 31% decline in the number of contracted sales during May from one year ago.  Housing inventory increased nearly 15% and the closed median sales price stabilized at around $350,000—about 4% less than a year ago. The drop off in pending sales was anticipated after the expiration of the federal tax credit which expired April 30.

Our local stats tell a different story. That’s why it is so important to know what is happening in the neighborhood.  I hope that you will find this report helpful.  It certainly is to me.  When someone asks me “How’s the market?”  I know exactly what the answer is.  The 3-page Report is available as a pdf file.

Mortgage rates are at historically low levels.  Keep in mind that an increase of 1 point in an interest rate translates to an increase of about 10% more for the cost of a mortgage .  Buyers should consider not only the price of a home – but also the cost of that home.  The big drops in housing prices seem to have stopped.  We may bounce along for awhile—meanwhile mortgage rates will not stay in the 4%-6% range much longer.  These low rates are an anomaly.  Once they normalize the home you want—at the price you want—may cost too much when you arrange for financing.

For more information or with any questions about this report, please contact Cheryl Grossman at 631-493-0542 or cheryl@liagent.com.  Live weekly market updates for Dix Hills, Melville and other areas within Huntington Township are available for download from Altos Research Reports by clicking on the widget – upper right sidebar.

]]> http://blog.liagent.com/2010/07/05/dix-hills-melville-half-hollow-hills-school-district-2010-january-june-bi-annual-housing-market-report/feed/ 0 http://blog.liagent.com/2010/06/27/video-from-long-island-mls-may-housing-market/ http://blog.liagent.com/2010/06/27/video-from-long-island-mls-may-housing-market/#comments Mon, 28 Jun 2010 03:41:04 +0000 cherylgrossman http://grossman.realty-buzz.com/?p=1029

Long Island MLS now produces a monthly video that gives a quick overview of the housing market and current real estate conditions.

For more information or to request a Free Market Value Report prepared especially for your home, please call Cheryl Grossman at 631-493-0542 or by email at cheryl@liagent.com.

Only 6 months left to use the federal energy-efficiency tax credit!  There is still time for homeowners to obtain financial help for some upgrades.  The tax credit is worth 30% of the costs, up to a maximum $1,500 total, for improvements – including insulation upgrades, heating and air-conditioning equipment, windows and doors, roofs, ventilation, water heaters and biomass stoves.  Some installation expenses are not included.  More advanced energy improvements, including solar panels have no cap and don’t expire until the end of 2016.

Check out the Database of Incentives and Policies for Renewables and Efficiency for federal and New York State at http://bit.ly/fhifg.

There is a waiting list for the appliance swap-out program – but other stimulus funded programs may still be running.

The Huntington Farmers Market opened today for the season!  I set the alarm for 6:30 this morning to arrive early – and I wasn’t disappointed!

Strawberries from the East End.  Fresh broccoli rabe ravioli.  Raw Honey from Centerport.  Live Crabs!  …and much more!  Open Sundays from 7-11.  Located in the Municipal Parking Lot next to Central Presbyterian Church on Main Street, with plenty of parking in the rear parking lot.

Don’t miss the WLIW/21 documentary about The Town of Huntington on Monday, June 7 at 8 pm!  “Hometown Huntington” explores the rich history of the Town – past, present and future.  Several former and current residents are featured, including:  Patti Lapone (Northport native), Ralph Macchio (Dix Hills native), the Lockhorn’s Bunny Hoest (Huntington) and Bernadette Castro (Lloyd Harbor).  Huntington is a wonderful place to live – the beautiful beaches, picturesque villages and towns and lively cultural scene!  For the 4^th year in a row, the “Best of Long Island” poll (“Long Island Press”) has ranked Huntington the “Best Downtown”!

You can view a preview of the program at wliw.org/huntington and a DVD of the program will be available later at wliw.org with a suggested donation. But you can watch it for Free on Monday, June 7, Channel 21 at 8 pm!

I’m frequently asked, “How’s the Market?”  The chart below gives the best answer to that question.  Altos Research provides a unique market statistic,  ‘Market Action Index” (MAI) which illustrates the balance between supply and demand – based on the current rate of sales versus inventory.   Their market reports contain this statistic and you can Request a Free Market Report from Altos Research for any zipcode (and some areas) on Long Island.  Just fill out the quick form for a free market report on the Left Sidebar.  Altos Reports will email one to you.  If you would like a personal consultation for a Market Value Report for your home, please call me at 631-223-8549 or email:  cheryl@liagent.com.

These charts are based on Quartile Statistics, Last 90 days.  They are “Live” – so the stats will change each week.

In both Dix Hills and Melville, during the week of February 10, 2010, the Top Quarter and the Bottom Quarter of the Market are performing the best.

The January, 2010 Dix Hills, Melville Half Hollow Hills School District Housing Market Report shows inventory levels about the same as last month.  Considering that during January there were 45 new listings in the Dix Hills market (vs. 12 new listings in December) and 16 in Melville (vs. 7 in December) the total numbers for both areas were surprisingly sustained – nudging up only slightly.  You can view the full report by clicking on Dix Hills, Melville SD#5 Housing Market Report, January 21010.

The  2-page Report below lists all the  Homes Entered Under Contract and Closed in January, 2010 for Dix Hills, Melville School District #5.   The report also includes market stats for each area.

If you have any questions about these reports or want more infomration please contact Cheryl Grossman at cheryl@liagent.com.

Half Hollow Hills High School West Senior, Levent Alpogel is one of the 40 students  from across the country named a finalist in the 2010 Intel Science Talent Search.  Established in 1942, this science competition is the nation’s oldest – and probably most renowned research contests for students.  The finalists are considered to be the most promising scientists of the future.

The competition between the finalists will be in March where they will meet in Washington, D.C.   The top winner will receive $100,000 from the Intel Foundation.

Levent’s project is:  ”A Non-Parametric, Massively Parallelized Multiscale Vessel Detection Method for Complex Vascular Structures” and is described as research on an improved method of detecting stenosis, a narrowing of blood vessels underlying many health problems.   Michael Lake is his teacher and the supervising scientist is:  Xenophon Papademetris from Yale University.

Over the years, Half Hollow Hills School District has had many of their students rank as Semi-Finalists.  And in 2003 Lester Wayne Mackey won 6th Place in the Final Competition.  Half Hollow Hills School District has detailed information about their science curriculum on their website.

All residents in Dix Hills & Melville can be proud of  Levent Alpogel’s achievment – and we wish him success in Washington D.C.!  We are also proud of the Half Hollow Hills School District for providing the support, teachers and high standards of education that prepare and enable all our students to achieve their goals.  I know their were some teachers who had a tremendous impact on my daughter and son during their high school years.  First ignating the “Spark”, then establishing the means and focus to accomplish their goals.  One in science and one in art (digital animation).