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Monday, October 8, 2012
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Wednesday, January 11, 2012
Real Estate Market Watch- Patchogue
Know Your Neighborhood Report
January 2012
PATCHOGUE NY 11772
# of Homes On The Market – 174
# of Homes SOLD in past 6 months- 69
If NO MORE homes were to come to the market, it would take approximately 15 months to clear the inventory available.
Avg. # of Days on the Market- 128 days (403 days was the highest, 20 days was the lowest)
Avg. LISTING price of homes sold in past 6 months was $263,688
Avg. SELLING price of these homes was $236,484 (10.5% lower than asking price)
There are currently 2 Bank Owned properties for on the market and 61 Short Sale properties. These distressed properties, along with 15 months of inventory available at today’s absorption rate, make Patchogue a DEPRECIATING market.
As of today, 1 in every 10 homeowners on Long Island are in “pre-foreclosure”, or 90 days or more delinquent on their mortgage payments. Historically, only 2% of all delinquent homeowners are able to recover and make their mortgage payments. That means, 98% of the homes in “pre-foreclosure” will become either Short Sales or Bank Owned properties. In the recent past, the banks in NY had stopped the foreclosure process to alleviate some of the burdens in the real estate market. However, banks have now gotten the approval to “clear their inventory” and start foreclosing again!
Due to the shadow inventory in Suffolk County of pre-foreclosures that will be coming to the market as distressed properties, all of Suffolk County can expect a decline in home values of at least another 4-7% over the next 6 months. The longer a seller waits to accept an offer, the quicker the value of the house will depreciate. “Waiting until the flowers bloom” in the Spring is no longer a viable option for home sellers. In the Spring, there is more competition, driving home values down- and giving buyers more options of where to put their money.
For more information on the Patchogue real estate market, feel free to call me anytime at 631-831-0912 or send me an email at KKellyNY@gmail.com
New information can be found daily on my blog at WWW.TheLIRealEstateGuy.blogspot.com where I focus on not only facilitating transactions, but educating the consumer.
If you would like to subscribe to my bi-weekly newsletter, with current information about your local market, drop me a line at KKellyNY@gmail.com
January 2012
PATCHOGUE NY 11772
# of Homes On The Market – 174
# of Homes SOLD in past 6 months- 69
If NO MORE homes were to come to the market, it would take approximately 15 months to clear the inventory available.
Avg. # of Days on the Market- 128 days (403 days was the highest, 20 days was the lowest)
Avg. LISTING price of homes sold in past 6 months was $263,688
Avg. SELLING price of these homes was $236,484 (10.5% lower than asking price)
There are currently 2 Bank Owned properties for on the market and 61 Short Sale properties. These distressed properties, along with 15 months of inventory available at today’s absorption rate, make Patchogue a DEPRECIATING market.
As of today, 1 in every 10 homeowners on Long Island are in “pre-foreclosure”, or 90 days or more delinquent on their mortgage payments. Historically, only 2% of all delinquent homeowners are able to recover and make their mortgage payments. That means, 98% of the homes in “pre-foreclosure” will become either Short Sales or Bank Owned properties. In the recent past, the banks in NY had stopped the foreclosure process to alleviate some of the burdens in the real estate market. However, banks have now gotten the approval to “clear their inventory” and start foreclosing again!
Due to the shadow inventory in Suffolk County of pre-foreclosures that will be coming to the market as distressed properties, all of Suffolk County can expect a decline in home values of at least another 4-7% over the next 6 months. The longer a seller waits to accept an offer, the quicker the value of the house will depreciate. “Waiting until the flowers bloom” in the Spring is no longer a viable option for home sellers. In the Spring, there is more competition, driving home values down- and giving buyers more options of where to put their money.
For more information on the Patchogue real estate market, feel free to call me anytime at 631-831-0912 or send me an email at KKellyNY@gmail.com
New information can be found daily on my blog at WWW.TheLIRealEstateGuy.blogspot.com where I focus on not only facilitating transactions, but educating the consumer.
If you would like to subscribe to my bi-weekly newsletter, with current information about your local market, drop me a line at KKellyNY@gmail.com
Why Didn't Your House Sell?
I am sure you have heard the old saying that the three most important factors in real estate are “location, location, and location”. While location is a factor in the decision to purchase a property, there are many other determining factors. I believe that there is “a lid for every jar”. You purchased the property for some reason other than location- it’s important to determine the true motivation for a prospective buyer, and match them to the home that meets their needs.
Other than location, there are many reasons why a home that has been on the market may not sell. I would like to focus on what I think are the main reasons, price and marketing.
In my experience, many sellers today are pricing their homes too high. Whether it be from watching too much HGTV or reading too many Zillow or Trulia reviews, sellers assume that they need to price their properties higher so that there is “room to negotiate”. I can understand why a seller would feel this is a good tactic for getting the most amount of money for the house. Many of my past clients have tried this strategy, and what they have found is that a higher price actually turns off many potential buyers, and most of the time an offer is never even made.
A properly priced home will draw the attention of qualified, educated buyers. A buyer in today’s depreciating market needs to feel not only that they are getting the home for a good price, but that they are compelled to buy NOW because there is a good chance they will lose the opportunity to buy the property if they wait too long. If you look at the statistics on the Multiple Listing Service of Long Island, the homes that are priced in the lower 10% of all the homes available in a given area are the ones that sell- and they typically sell for at or ABOVE asking price! A good strategy for pricing is to position your property in a way that will attract many buyers and hopefully cause a “bidding war”.
All too often, when I am searching for a home for buyers that I am working with, I come across homes with very little information, or property details, and some with only 1 or 2 pictures. I am a professional Realtor®, and I search the MLS multiple times a day, every day. I know what to look for and where on the property data sections. But, imagine for a moment, your typical home buyer running a search. Today, other than the MLS, there are hundreds of sites dedicated to real estate search. These sites typically just import the data that an agent has put on the MLS, and give the same exact information, just in a different layout. If an agent is not utilizing a multitude of tools to properly market the property, it will easily get lost in the noise. Potential buyers are using the internet to help expedite their search and save valuable time. If the property is not appealing at first glance, they will skip over it.
This is why I feel I have a great advantage in the marketing of a property. I use many different platforms to advertise a property for sale. I include at least 20 pictures of the property, a virtual tour using panoramic software, a video tour, MLS, Coldwell Banker, My personal site, AOL Homes, Zillow, Trulia, You Tube, Facebook, Twitter, Blogger, and many more avenues for marketing. Not to mention, open houses, Newsday ads, and actually knocking on doors to promote the home! Actually, my most recent sale came from doing just that- I knocked on all the doors in the neighborhood to let everyone know that there is a home for sale and in the interest of maintaining the home values in the neighborhood, the quicker it sells the better, and if anyone knew of someone looking to buy, please have them call me… I GOT A CALL THE VERY NEXT DAY! A neighbor had a friend looking to buy, and was able to talk about the reasons to buy in the area from a personal perspective, and the home sold for MORE THAN ASKING PRICE!! Amazing how a pretty simple marketing tool can be so effective- and yet many agents are not doing it!
When the time comes that you decide to sell your home, it is important to choose a Realtor® who will not simply list your property with the “hope” that it will sell, but who will be pro-active in getting your home sold for the best price in the least amount of time. Consider this for a momet- there are over 18,000 licensed Realtors® on Long Island today. Less that 2,000 of them were involved in more than 7 transactions last year! That means there are over 16,000 Realtors® who simply look at this as a part time gig or hobby. Do you want a part time hobbyist helping you with one of the largest transactions in your life, or do you want the guidance of a true professional?
Have questions regarding selling your home? Want an honest and objective look answer for why YOUR home didn’t sell? Feel free to contact me anytime at 631-831-0912 or drop me a line at KKellyNY@gmail.com
Other than location, there are many reasons why a home that has been on the market may not sell. I would like to focus on what I think are the main reasons, price and marketing.
In my experience, many sellers today are pricing their homes too high. Whether it be from watching too much HGTV or reading too many Zillow or Trulia reviews, sellers assume that they need to price their properties higher so that there is “room to negotiate”. I can understand why a seller would feel this is a good tactic for getting the most amount of money for the house. Many of my past clients have tried this strategy, and what they have found is that a higher price actually turns off many potential buyers, and most of the time an offer is never even made.
A properly priced home will draw the attention of qualified, educated buyers. A buyer in today’s depreciating market needs to feel not only that they are getting the home for a good price, but that they are compelled to buy NOW because there is a good chance they will lose the opportunity to buy the property if they wait too long. If you look at the statistics on the Multiple Listing Service of Long Island, the homes that are priced in the lower 10% of all the homes available in a given area are the ones that sell- and they typically sell for at or ABOVE asking price! A good strategy for pricing is to position your property in a way that will attract many buyers and hopefully cause a “bidding war”.
All too often, when I am searching for a home for buyers that I am working with, I come across homes with very little information, or property details, and some with only 1 or 2 pictures. I am a professional Realtor®, and I search the MLS multiple times a day, every day. I know what to look for and where on the property data sections. But, imagine for a moment, your typical home buyer running a search. Today, other than the MLS, there are hundreds of sites dedicated to real estate search. These sites typically just import the data that an agent has put on the MLS, and give the same exact information, just in a different layout. If an agent is not utilizing a multitude of tools to properly market the property, it will easily get lost in the noise. Potential buyers are using the internet to help expedite their search and save valuable time. If the property is not appealing at first glance, they will skip over it.
This is why I feel I have a great advantage in the marketing of a property. I use many different platforms to advertise a property for sale. I include at least 20 pictures of the property, a virtual tour using panoramic software, a video tour, MLS, Coldwell Banker, My personal site, AOL Homes, Zillow, Trulia, You Tube, Facebook, Twitter, Blogger, and many more avenues for marketing. Not to mention, open houses, Newsday ads, and actually knocking on doors to promote the home! Actually, my most recent sale came from doing just that- I knocked on all the doors in the neighborhood to let everyone know that there is a home for sale and in the interest of maintaining the home values in the neighborhood, the quicker it sells the better, and if anyone knew of someone looking to buy, please have them call me… I GOT A CALL THE VERY NEXT DAY! A neighbor had a friend looking to buy, and was able to talk about the reasons to buy in the area from a personal perspective, and the home sold for MORE THAN ASKING PRICE!! Amazing how a pretty simple marketing tool can be so effective- and yet many agents are not doing it!
When the time comes that you decide to sell your home, it is important to choose a Realtor® who will not simply list your property with the “hope” that it will sell, but who will be pro-active in getting your home sold for the best price in the least amount of time. Consider this for a momet- there are over 18,000 licensed Realtors® on Long Island today. Less that 2,000 of them were involved in more than 7 transactions last year! That means there are over 16,000 Realtors® who simply look at this as a part time gig or hobby. Do you want a part time hobbyist helping you with one of the largest transactions in your life, or do you want the guidance of a true professional?
Have questions regarding selling your home? Want an honest and objective look answer for why YOUR home didn’t sell? Feel free to contact me anytime at 631-831-0912 or drop me a line at KKellyNY@gmail.com
Homes ARE selling, and Banks ARE Lending
Due to the current state of the real estate market, we on Long Island currently find ourselves in a depreciating market. Many are under the false assumption that homes just aren’t selling, and banks are not lending.
Recently, the National Association of Realtors (NAR) released their Existing Home Sales Report. According to the report, there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means approximately 12,000 houses sold yesterday, 12,000 will sell today, and approximately another 12,000 will sell tomorrow. So the thinking that homes aren’t selling just isn’t true.
Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.
There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe.
Recently, the National Association of Realtors (NAR) released their Existing Home Sales Report. According to the report, there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means approximately 12,000 houses sold yesterday, 12,000 will sell today, and approximately another 12,000 will sell tomorrow. So the thinking that homes aren’t selling just isn’t true.
Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.
There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe.
Thursday, January 5, 2012
Predictions for the 2012 Real Estate Market
Predicting trends during the most volitile housing market in american real estate history is no easy task. According to the crew at Keeping Current Matters, these are the five real estate items we should keep an eye on in 2012.
1. Buyers Will return
In 2011, a lack of consumer confidence in the economy dramatically impacted the housing market. Buyers were afraid of making any big ticket item purchases. By the end of 2011, buyer confidence began to return and sales increased. Overall economic conditions will continue to slowly improve throughout 2012 and consumer confidence will solidify. Once that happens, home buyers will begin to relaize that now is THE time to buy
2. Foreclosures Will Increase
The "shadow-inventory" of foreclosures which has been growing since the robo-signing challenges of late 2010 will finally be introduced to the market. Banks finally have the clearance from the courts to clear their inventory. Over 10% of all the homes on Long Island are in pre-foreclosure (90 days or more behind on mortgage payments). As these properties are foreclosed on by banks, and the banks begin to release their inventory to the public, we will see more discounted prices. Distressed homes will impact the values of the non-distressed homes in the area.
3. Prices Will Soften
As more and more foreclosures come to market, there will be greater pressure on the values of houses in the region. Foreclosures impact the value of non-distressed properties in two ways:
- They will eat up some of the buyer demand in the market. Less demand equals higher supply, equals lower cost.
- They impact the appraisals on ALL transactions in the area. According to appraisers that I have recently spoken with, the appraisal must include foreclosed/ bank owned/ and short sale properties in their reports to the banks if the market area consists of more than 10% of sales in distressed properties. AGAIn- ALL OF LONG ISLAND is at at least 10% pre-foreclosure status. So ALL areas will be affected in appraisals.
An increae in foreclosures will have a negative impact on values. This will cause more homes to be underwater.
4. Short Sales Will Increase
As mentioned above, we strongly believe that home prices will soften through at least the first half of 2012. Falling home prices will force more homeowners into a position of negative equity. Negative equity is a main trigger for people to "strategically default" on their mortgage obligations. Even the areas that have not been affected in recent past have a higher chance of being negatively affected now. Homeowners who do have the money to make their mortgage payments, but view their home as a depreciating asset (or liability) will choose to strategically default on their mortgage payments, or short sale the property. If this happens, there will be an increase on the number of foreclosures. However, banks will most likely be taking preventative measures to help these homeowners avoid foreclosure by easing the requirements in the short sale process for bith homeowners and real estate professionals.
5. Great Agents will be VERY Successful
Real Estate Professionals who have invested the time, money, and energy to truly understand what is happening and why it is happening will seperate themselves from their competition and do very well this year.
Those who take the next step of learning how to simply and effectively communicate the market to their clients will be seen as industry leaders. these experts will dominate their market.
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