As part of our on-going research, we look at the markets through the prism of the buyer. As such, we have segmented Nassau County into 11 regions - today, we will look at our first region that includes Baldwin, Freeport, Hempstead, Roosevelt and Uniondale.
The first quarter-2010 saw 152 properties change hands. This was a good period for this region with an increase in sales volume of 24 percent as compared to the same quarter last year and a 153 percent increase as compared to the 1st quarter 2008. Sales activity is down from the prior three quarters in 2009 which is typical for this seasonal housing market. The cold weather and snow proved to be a challenge for the real estate market during Jan, Feb and March-2010. With the extension of the first time home buyers tax credit, look for strong numbers moving forward.
The median sales price has shown continued weakness with a median sales price of $233,420. This is the lowest price point since the survey started and reflects a decline in price of 8 percent as compared to the first quarter-2009 and 34 percent decline as compared to the 1st quarter 2008.
Looking deeper, if you look at the market without distressed sales (short sales & foreclosures), activity drops to a low of 38 units transferred and a median sales price of $317,250. Only 25 percent of the sales that occurred were true "arms length" transactions.
According to the Long Island MLS, there are now more than 500 homes listed for sale in this region of Nassau County, with a median asking price of $319,000. Of these homes listed for sale, more than 60 percent have had a price reduction from their initial listing. The median original listing price was $349,000 and has since declined approx. 10 percent to $315,000. Nearly half of the homes listed for sale are distressed sale (short sales or foreclosures).
Wednesday, April 21, 2010
Tuesday, April 6, 2010
Looking at Ronkonkoma
This morning, we had an opportunity to appraise a property located in Ronkonkoma, and as always, we compile our research and present it here.
Ronkonkoma reached its peak during the 4th-quarter of 2005 when the average high sales price was $393,000. As 2009 ended, the average sales price in Ronkonkoma was $310,000 while the median sales price during 2009 was $311,000 - a decline of 21 percent. This is consistent with many of the surrounding area's of Suffolk County. According to recent data, 11 percent of the homes in this market are in default as of 02/2010.
During the 1st-quarter of 2010, the average sale price had remained level at $311,000 while the median price dropped to $290,000; the drop in the median sales price suggest that there were many more at the lower end of the price range.
Moving forward, we see that the available inventory (homes listed for-sale) is declining which is reducing the downward pressure in pricing.
As you can see, the median listing price is beginning to move upward while the number of homes listed for sale remains relatively flat. The Ronkonkoma market should have a stronger than average 2nd-qtr, bolstered by the first time home buyers tax credit.
Ronkonkoma reached its peak during the 4th-quarter of 2005 when the average high sales price was $393,000. As 2009 ended, the average sales price in Ronkonkoma was $310,000 while the median sales price during 2009 was $311,000 - a decline of 21 percent. This is consistent with many of the surrounding area's of Suffolk County. According to recent data, 11 percent of the homes in this market are in default as of 02/2010.
During the 1st-quarter of 2010, the average sale price had remained level at $311,000 while the median price dropped to $290,000; the drop in the median sales price suggest that there were many more at the lower end of the price range.
Moving forward, we see that the available inventory (homes listed for-sale) is declining which is reducing the downward pressure in pricing.
As you can see, the median listing price is beginning to move upward while the number of homes listed for sale remains relatively flat. The Ronkonkoma market should have a stronger than average 2nd-qtr, bolstered by the first time home buyers tax credit.
69% of Reviews Completed Show Negligence
A large part of our business is to complete valuation reviews that were originally developed from 2005 - 2008. During the month of March, we completed 32 appraisal reviews and found that 69 percent of these appraisal had misrepresented the value by 10 percent or more.
The most common occurrence involved the appraiser (a supposed unbiased third party to the transaction) selecting comparable sales that were not suitable for the assignment. In many cases, the appraiser chose to utilize sales data from a superior area and ignoring the sales located on the subjects street in an effort to support their opinion of value. This occurred in 44 percent of the appraisal we review. The next most common occurrence was the appraiser not reporting the subjects listing history. For instance, one property was listed for sale asking $429,000 yet the appraised value was $500,000.
Among our observations, we noted that several appraisers did not report the true condition of the subject property. In these cases, the appraiser reported that the subject was maintained in "good" condition yet their MLS listings state that the property "needs work" or "needs TLC".
While I do not believe that the appraisal industry was totally at fault for their actions, it is apparent that many appraisers were part of the problem.
The most common occurrence involved the appraiser (a supposed unbiased third party to the transaction) selecting comparable sales that were not suitable for the assignment. In many cases, the appraiser chose to utilize sales data from a superior area and ignoring the sales located on the subjects street in an effort to support their opinion of value. This occurred in 44 percent of the appraisal we review. The next most common occurrence was the appraiser not reporting the subjects listing history. For instance, one property was listed for sale asking $429,000 yet the appraised value was $500,000.
Among our observations, we noted that several appraisers did not report the true condition of the subject property. In these cases, the appraiser reported that the subject was maintained in "good" condition yet their MLS listings state that the property "needs work" or "needs TLC".
While I do not believe that the appraisal industry was totally at fault for their actions, it is apparent that many appraisers were part of the problem.
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