Real Estate Blog
Friday, September 14 2012
Just In Time For Labor Day…
By Michael Ardolino, Broker-Owner, Realty Connect USA
While monitoring the local real estate market over the course of this year, we noted the building momentum in the early months, the sustained growth in the spring, and the revved up market over the summer. Now, as we prepare to celebrate Labor Day, the traditional harbinger of autumn, here’s where we stand:
· For our local area, the July inventory figure stood at 9 months. Reaching a single-digit level represents a major turning point and brings us closer to a balanced market. Exhibit 1 shows the relationship between inventory and price. A tight supply creates a seller’s market and appreciating prices. An excess supply creates a buyer’s market and depreciating prices.
· Inventory for Long Island as a whole went down by an impressive 15% from July 2011 to July 2012. The July figure was 11.7%.
· As noted by Joseph E. Mottola, CEO of the Long Island Multiple Listing Service, “The Nassau, Suffolk, Queens housing market continues to show positive signs for buyers and sellers. For the ninth consecutive month, contracted sales have exceeded the prior year, indicating an improving level of consumer confidence.” This is key to sustaining the recovery of housing on Long Island.
· Long Island’s pending sales in July were up by 16.75% over July of last year. This bodes well for continued improvement.
Things seem to be getting back into synch. The market has definitely heated up, and we are expecting a very busy fall. Nationally speaking, housing has become a bright spot, and we are now getting into the game. (See Exhibit 2.)
If you are a seller who wants to seize the opportunity to become a move-up buyer while conditions are still ripe, contact me at 631-941-6262 or Michael@Ardolino.com. If you are a potential buyer who is concerned about increasing mortgage rates, and you’ve decided to strike while the iron is hot, I look forward to hearing from you. Now is the time to buy or sell and put real estate to work for you. Meanwhile, I’ll keep you posted on the improving health of our local market.