Real estate holding steady

Prices in local housing market contradict national downturn, Realtors say

Issue of August 1, 2008

Though a recent report on Bloomberg.com described falling real estate prices and the lowest sales of pre-owned homes in 10 years, housing in the North Shore and South Shore communities of western Nassau County has remained stable, according to real estate agents in the area.

“Far Rockaway and the Five Towns is a wanted area to live in,” said Donny Miller, owner and broker of Five Towns Miller Realty Inc. in Lawrence. “The developments in Las Vegas, Florida and California were overbuilt; they can’t sell and are standing vacant. There is no vacant land in the Five Towns. You have to knock down a house to build another one.”

Most real estate experts interviewed noted that housing prices peaked in 2006 and have declined since then, showing a drop in moderately priced homes but no significant change in more expensive homes.

“Prices started at $550,000 for small starter homes and now small starter homes are in the 400s,” noted Miller. “A lot of people in low to mid-price ranges could not afford to buy a house, so that prices having gone down, allowing lower-cost houses to sell. The million-dollar-plus homes have been affected much less than smaller less expensive homes, and Far Rockaway is less affected than the Five Towns in the downturn.”

Far Rockaway has fewer homes to choose from, said Miller, explaining the stability. “It’s a small neighborhood, has geographic limitations as to how far it can expand and has less inventory. It keeps prices stable since there is very little to buy.”

By contrast, he pointed out that in the Five Towns, “inventories of homes have doubled since two years ago,” noting that the downturn was caused by the over inflation of house prices and increased difficulty in obtaining a mortgage. He has potential buyers prequalify much more now than in the past, asking them to speak to a mortgage broker to see what they can afford and get a pre-approval before they make an offer.

“Before the mortgage crisis, if you had a pulse, you could get a mortgage,” he said. “Now the banks weed out those that should be renting and allow qualified buyers to get a mortgage.”

“People were buying without hesitation, the market was hyped up in ‘05 and ‘06,” concurred Milky Forst, owner of Milky Forst Properties. “Now it’s more cautious. People are buying; there’s always a need for homes but they are more careful. People were buying a $500,000 house for a deposit of $5,000, some not even that. Now mortgages are not as easy to come by.”

Bayswater has “come down a little bit...but is relatively stable,” said Simcha Dornbush, Licensed Real Estate Agent at Century 21 Yve in Hewlett.”

He estimated that they have come down about 10 percent from the peak, saying that there is a strong, stable market here as compared to the rest of the country. He also pointed out that “Far Rockaway and West Lawrence are more expensive than the Five Towns based on the square footage,” noting that it is the “most exciting area now.”

“Bayswater is more affordable, like Inwood or Cedarhurst, and other areas are being considered that wouldn’t have before,” said Dornbush. He also noted that “you get more for your money in Bayswater and there’s not much inventory.” Due to the drop in prices, the Five Towns is now an option for buyers who wouldn’t have considered it two years ago.

In the last few months, 16 families have bought homes in Oceanside in the low 400s, reported David C. Welner, chairman of the growth initiative at the Young Israel of Oceanside. He noted that prices peaked in 2006 and came down in ‘07 and ‘08 as well.

Prices are “stabilizing” and homes in Oceanside have a “diversity of styles, good inventory and are in every price range. It’s still a buyer’s market; young families are getting wonderful deals,” he added.

Liza Dimarco, associate broker at Daniel Gale in Manhasset, points at the negativity of the media regarding the housing market for some of the “fall off” in prices in Great Neck. She said that prices have come down about seven to 10 percent but, “there is not a lot of fallout. If they’re realistic in pricing, the market is moving. There is not as much demand because of the bank situation, but buyers are coming to the table and only those qualified can buy.”

Hemda Rahmani, a licensed sales agent at Prudential Galeria Real Estate in Roslyn/Williston Park said that Great Neck is stable and “there are always customers, selling and buying.”

According to Robin Goren of Keith Thomas Realty, “prices are less than two years ago. There are fewer buyers.”

However, homes continue to sell in West Hempstead, she said, despite the current nationwide downturn in real estate. Approximately eight families have moved into the area within the last eight months.

Goren advises buyers to get a 30 year fixed rate mortgage with a down payment of about $20,000 and make larger payments once a year to pay it down earlier. She warns against getting adjustable rate mortgages since buyers “got messed up with the interest rate.”