Long Island Real Estate Homes Online

Statistics for Real Estate to go under contract July 2008 Oceanside Long Island NY 11572

Statistics for Real Estate to go under contract July 2007 Oceanside Long Island NY 11572

Statistics for Real Estate to close in July 2008 Oceanside Long Island NY 11572

Statistics for Real Estate to close in July 2007 Oceanside Long Island NY 11572

(Calculations are done excluding zero-values except for %Difference)

Stats are stats and they don’t tell everything that is going on, but just a few observations comparing July07 to July 08;

For Closed sales: values are only down by approximately 5%.

Days on the market are way up

Volume is down by 20%

For under contract: Asking prices are down by 15%

Days on the market are also way up

Volume is almost the same

http://www.longislandrealestatehomesonline.com/the-wedgewood-section-of-oceanside-ny

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.

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 516.984.0789 or e/m Reillyerik@aol.com

Erik Reilly

“Living a life I love, through service to others”

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.