Long Island, NY Real Estate and Homes For Sale

Positive Signs in the Real Estate Market

Positive Signs in the Real Estate Market:

NAR's Pending Home Sales Index Rises in June

Some improvement is projected for existing-home sales in the months ahead, according to the latest forecast by the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 5.3 percent to 89.0.
"The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery."

-- Lawrence Yun, NAR chief economist "Pending Home Sales Rise, Wider Gains Anticipated as Buyers tap Housing Provisions," National Association of Realtors®, August 7, 2008. (Data/Report - PDF)

Study: Most Americans Not Likely to Experience Significant Decline in Home Values

Only four states -- Arizona, California, Florida and Nevada -- have had declines of more than 4 percent in home prices over the past year, according to the house price index of the Office of Federal Housing Enterprise Oversight.
Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states -- but will not collapse.

-- "Housing Collapse Ahead? Not According to the Data," by Charles W. Calomiris, Stanley D. Longhofer and William Miles, Washington Post, August 4, 2008.

Housing Rescue Bill Signed in to Law

The housing act ... aims to provide relief to homeowners, incentives to buyers, guidance to lenders and oversight to vital government-sponsored entities, such as Fannie Mae and Freddie Mac. Some of the bill's provisions include:

Foreclosure avoidance: Will help an estimated 400,000 homeowners avoid foreclosure by refinancing into 30-year fixed-rate loans backed by the Federal Housing Administration.
Aid for buyers: First-time home buyers who purchase a primary residence between April 9, 2008, and July 1, 2009, will be eligible for a tax credit of $7,500 or 10% of the purchase price, whichever is less. Home buyers who claim the credit will be required to pay it back in equal installments over 15 years, starting in the second year after the home is purchased.
Loan limit: Federal Housing Administration's loan limit is raised in high-cost areas from 95% to 115% of area median home price, up to $625,500.
Neighborhood help: Provides $4 billion in grants for buying and renovating foreclosed properties in hardest-hit areas.

-- "Housing Rescue Bill May Fall Short; Who Benefits?," by Anna Bahney, USA Today, July 28, 2008.

Mortgage Applications Up 2.8% over Previous Week

The volume of mortgage applications filed last week rose slightly, increasing a seasonally adjusted 2.8% compared with the week before, the Mortgage Bankers Association reported. Applications for mortgages to refinance existing home loans rose 4.4% on a week-to-week basis, while mortgage applications for the purchase of a home increased a seasonally adjusted 1.8%.

-- "Mortgage Applications Rose Slightly Last Week," by Amy Hoak, Marketwatch, August 6, 2008.

Top 11 Most expensive Long Island homes

105	Centre Island	Rd	Centre Island	11771	$14,500,000	Post Modern	17	9	6.5	Full	4	6	$62,361	Det	1	2	Y	2050056
45	Moores Hill	Rd	Laurel Hollow	11771	$14,500,000	Colonial	12	7	5.555	Full	8	6	$0	Det	1	1	N	1982406
1	Lighthouse Point		Lloyd Harbor	11743	$14,500,000	Estate	19	7	7.555	Full	4	2	$66,466	Det	1	1	Y	2073924
30	Forest	Dr	Sands Point	11050	$15,500,000	Colonial	11	6	4.555	Full	3	4	$0	Det	1	1	Y	2101170
32	Bay	Rd	Quogue	11959	$16,500,000	Estate	17	10	5.5	Crawl	3	3	$12,289	Att	1	1	Y	2107014
1365	Planting Fields	Rd	Upper Brookville	11771	$16,950,000	Traditional	40	7	7.5	Full	7	6	$77,612	Det	1	1	N	1969027
8	Aqua	Dr	Southampton	11968	$18,000,000	Estate	20	8	7.5	Full	2	5	$34,688	Det	1	3	Y	1880185
77	Crescent Beach	Rd	Glen Cove	11542	$19,500,000	Antique/Hist	26	11	10.5	Full		5	$161,713	Det	1	1	N	2102758
75	Cornwells Beach	Rd	Sands Point	11050	$19,950,000	Estate	16	8	10.555	Full	6	4	$165,852	Det	1	1	Y	1843806
5	Ariel	Ct	Sands Point	11050	$24,500,000	Mediteranean	12	6	10.5	Crawl	3	4	$88,177	Att	1	2	Y	2051980
1	Beach Plum	Ct	Amaganset	11930	$25,000,000	Other	11	6	6.5	None		3	$5,237	Det	1	1	Y	2099954

Your Green House: Energy Efficiency Goes Up, Power Bills Go Down

1> garde;">Green is more than just the color of energy efficiency. Its also the color of all the money youll save when you reduce your power bills.

Proper insulation is one key to a "green" home.

During cold weather, insulation keeps heated air inside, so your furnace doesnt have to work as hard. During warmer months, it prevents cooled air from escaping, easing the demand on air-conditioning units.

Insulation is rated by R-value, a measure of its effectiveness.Experts recommend an insulation value of at least R-30 in ceilings, R-13 in walls, and R-11 in floors. While insulation is an investment, there are also other, less expensive ways to cut your energy usage.

During the winter, open blinds and curtains to let the sun warm your home.
Use ceiling fans. Youll feel cooler without having to lower the thermostat.
Make sure warm and cool air from your system can circulate freely; dirt and other obstructions force a system to work harder. So, change the air filters at least every three months. Keep vents and registers clear of drapes and furniture; vacuum them regularly.
Don't "bump" your thermostat up and down. Set it at a consistent temperature thats comfortable for you. Add a programmable thermostat, if you dont have one.
Change regular light bulbs to CFLs, compact fluorescent light bulbs. CFLs use two-thirds less energy and last up to 10 times longer than incandescent bulbs.
Ask your local power company for a free energy audit. Many companies will send a consultant to evaluate your home and suggest personalized money-saving tips. Energy-saving appliances and other improvements may also come with incentives like tax credits or deductions that make "greening-up" your home even more beneficial.

Erik Reilly

"Living a life I love, through service to others"

Long Island Investment Property

Great Long Island investments today have good cash flow. I saw this property this week and was very excited about it, for the buyer investors I have been working with. It is a bank owned (REO) in Hempstead NY (on Long Island).

It s is 4 family consisting of 3- 2 Bedroom Apartments and 1- 1 bedroom apartment. It needs considerable work. All 4 baths, all 4 kitchens, some windows, as well as the stairs from the 1st floor hallway to the second floor need fixing or replcing. Structurally the property seems ok although I would definately have an engineer make sure.

Back to the numbers though. If the apartments are rented to tenants through the section 8 program the rents for 2 bedroom apartments are approximately $1,400.00 US per month. 1 Bedroom apartments can recieve up to $1,100.00 US per month. That is a gross annual income of $62,400.00 US ($1,400.00 + $1,400.00 + $1,400.00 + $1,000.00 x 12 = $62,400.00 US Dollars). The taxes are stated as $11,254.57. If we assume the insurance is $1,200.00 , heat $3,000.00, and water $1,000.00, per year the annual expenses are approximately $16,454.57 making the net operating income (NOI) a little less than $46,000.00 US Dollars.

The asking price on the property is $229,900.00 USD. The property may need 50-60,000.00 in work (you could easily put in more if you wanted to, but look at the picture- it is not and never will be a luxury apartment). Lets figure on some surprises and figure the total cost is $300,000.00 USD and that is figuring purchasing at full asking price (remember it is bank owned and banks are sometimes negotiable).

The capitolization rate on this property is 15%

I have spoken with one investor who puts in electric heat for each apartment, making his income go up and reducing the maintanance on an old boiler with the bonus of reducing carbon emmissions (It's a "Green" investment property---WOW making money and saving ther earth).

If you have any questions about this property or any other investment property feel free to contact me at 516*764-6200 or e/m Reillyerik@aol.com

Erik Reilly

"Living a life I love, through service to others"

Positive Signs in the Real Estate Industry

Mortgage Applications Up for Second Consecutive Week

Mortgage aplications in the U.S. rose for a second straight week, a sign that falling home prices are attracting some buyers. The Mortgage Bankers Association's index of applications to purchase a home or refinance a loan gained 7.5 percent in the week ended July 4. The group's purchase index increased 6.7 percent and its refinancing gauge climbed 8.7 percent.

-- "U.S. MBA's Mortgage Applications Index Increased 7.5% Last Week," by Shobhana Chandra, Bloomberg News, July 9, 2008.

First-Time Buyers Impacting Housing Market

First-time buyers dominated second quarter sales activity in many U.S. housing markets by accounting for an estimated 54% of existing home purchases, according to HouseHunt's latest Current Market Conditions national survey of about 2,000 member-agents. This is an increase of 15 percentage points in the past six months.

-- "First-Time Buyers Dominated Second Quarter Sales Activity in Many Markets," RISMedia, July 9, 2008.

The key player in any recovery scenario is the first-time buyer. The housing market operates with a pronounced laddering or ripple effect. When entry-level buyers flood the market, they not only stimulate production of new homes, they purchase existing homes. Those purchases, in turn, allaw the sellers to move up to bigger houses.

-- "On the Path to a Housing Rebound," by Shawn Tully, Fortune, June 24, 2008.

Some Markets Showing Price Gain

One bright spot in the (S&P/Case-Shiller) report was that more cities showed a gain in prices in April compared with the previous month. Houses in eight areas rose in value, compared with just two in March. Month-over-month gains were led by Cleveland and Dallas. There may be "some surprises in the next few months that would indicate we are at or near a bottom in probably one-third to one-half of the country."

-- Karl Case, an economics professor at Wellesley College, "S&P/Case-Shiller Home Prices Fell 15.3% in April," (video) by Shobhana Chandra, Bloomberg News, June 24, 2008.

Great Time to Buy for Retirees

This might be the right time to find a bargain, especially for buyers approaching their retirement years who can afford to take their time. Of course, anyone looking to buy can also find good reasons to take a wait-and-see attitude, like the fact that good deals may not exist in every location, and no one really knows if prices will continue to decline. "It's like missing the top of the market - it's the same thing with the bottom. Generally you know it's happened because you're looking in the rearview mirror and it's passed you by."

-- Maurice Veissi, president of a Miami agency, "Retirees Find the Time May Be Right to Buy," by Susan Stellen, The New York Times (registration required), June 27, 2008.

Falling Housing Starts a Positive Sign for Recovery

The news that housing starts have fallen to their lowest level in 17 years sounds like one more reason to be depressed about the shrinking value of your home. In fact, it's an almost certain sign that the path to a housing recovery is finally in sight. If prices are going to stabilize, let alone rebound, the United States needs to produce far more first-time home buyers than new houses. "For the recovery to begin, builders need to eliminate the standing inventory of finished, unoccupied new homes."

-- Mike Castleman, founder of Metrostudy, "On the Path to a Housing Rebound," by Shawn Tully, Fortune, June 24, 2008.