Local Market Changes
In the Long Island Market we see great buyer activity. We are finding that homes which are priced well really are selling! However, the question remains unanswered as to the overall market progression in the Smithtown, Commack and Saint James areas. The Market is currently vulnerable in light of current distressed properties and inventory levels. According to Steve Harney of Keeping Current Matters, this is a concern on a national level as well. Harney's article states
"We believe the housing market is recovering. We believe that sales will be robust through the rest of the year. However, we also believe that the increase in demand will not impact prices in a big way as we think there will also be an increase in the supply of homes coming to the market. This increase in supply will offset the increase in demand. The increase in supply will be fueled by two categories of inventory:
- Foreclosures entering the market as a result of the National Mortgage Settlement
- Pent up supply of homeowners who have been unable to sell their homes over the last several years."
While we do not have a huge supply of foreclosure properties on our market, we do have an abundance of inventory. Therefore, this will continue to hamper any increase in pricing for a while to come for our homeowners.
Our market at a glance:
Smithtown, NY has 217 homes for sale... That is 16 months of inventory
Saint James. NY has 107 homes for sale...That is 20 months of inventory
Commack, NY 156 homes for sale...That is 13 months of inventory.
Now, keep in mind a normal market is about six months of inventory so we do still have a ways to go. So if you are selling now, price it right and work with a company who will aggressively work to sell your property!!