Suffolk Housing Market on the Move

The F-word is alive and well in the Suffolk housing market – as the nation anguishes in a financial crisis of epic proportions, foreclosures punctuate every zip code in the county. 

However, some areas are faring better than others.  According to a March 10 Foreclosure Rate Heat map by RealtyTrac, one in 641 housing units in Suffolk received a foreclosure filing.  RealtyTrac is a national company specializing in the foreclosure market, with resources including property listings, loan data and real estate courses.  Lake Grove fared well  with three in 1,355, Holbrook one in every 741, Ronkonkoma one in every 606, Farmingville one in every 492 and Holtsville six in every 731.

The Multiple Listing Service of Long Island, Inc. (MLSLI) is a network comprised of almost 2,500 real estate offices in Queens, Nassau and Suffolk.  Through this databank, REALTORS, brokers and sales association work together to keep the regional market moving forward. 

MLSLI is owned by the Long Island Board of REALTORS®.  Frank Dell'Accio is the MLSLI President. 

"The March contracted data supports our belief that there is a strong demand from homebuyers who are most likely responding to the overall favorable market conditions (price, interest rates, selection) as well as many homebuyers are taking advantage of the federal tax credit," said Dell'Accio.  

With that Homebuyer Tax Credit deadline looming on April 30, new data is showing there has been a flurry of activity. Music to the ears of the Obama Whitehouse and those in the real estate market, this tax credit can provide up to an $8,000 tax credit for first time home-buyers (for their principal residence). 

It also provides up to $6,500 for repeat home buyers. Called "The Worker, Homeowner and Business Assistance Act," it was created to stimulate the economy and housing market.  The tax credit applies to sales after Jan. 1, 2009 and on or before April 30, 2010. 

There are income limits and they have changed to benefit Long Islanders where annual wages are higher than national averages.  The original income limits were applicable between Jan. 1, 2009 and Nov. 6, 2009 and they were $75,000 for a single tax-payer and $150,000 for married couples filing joint returns.  Those figures have since risen dramatically to $125,000 and $225,000 respectively.    

When Patch mentioned the F-word, Dell'Accio said there is a great deal of misinformation about the foreclosure market in the region. 

"When they talk about foreclosures, they are talking about filings; when a bank files a notice." 

He says there is a huge difference from a banking filling notice because of late payments and a boarded up home. 

"As of last week, out of the 29,000 houses for sale listed in Queens, Nassau and Suffolk, only 583 were foreclosure sales," he explained.

Dell'Accio releases a monthly video called "The Monthly Skinny Video" with latest data on the real estate industry.  He admits to home prices flattening across the Island, the number of closed sales in Suffolk in March was 709 - a 22.9-percent increase over last March.  In Nassau they rose 36-percent.  However, as far as pending sales transactions – Suffolk hovers over Nassau 38.6 to 31-percent. 

Tick Tock April 30 is encroaching if you want to cash in on the federal tax credit but there an extension has been created for members of the military.  They must have a binding sales contract in place by April 30, 2011 and have closed by June 30, 2011.

Governmental incentives for members of the military date back to the V.A. Act after WWII, which resulted in the birth of suburbia right here on Long Island. 

"They are still applicable now – veterans can buy a house with no money down, any closing fees and  with favorable interest rates," explained Dell'Accio.  And there are plenty of homes to choose from in the Sachem Patch area.

We found 39 pages of house listings on the MLSLI website.  You can search for homes, condos and town houses by zip-code, township or school district.   A behemoth district with eighteen schools, Sachem also sports an enormously high per pupil spending rate averaged at $21,873 per student. Years ago buying a home was all about location, location, location – but on Long Island, where we produce some of the country's best and brightest, it's all about school district, school district, school district.  

"The level of buying activity is quite strong and if it continues as is, we anticipate it will produce a very robust spring sales season," says Dell'Accio. 

In the business since 1976, he has seen the regional market take multiple roller coaster rides. 

"Right now, Long Island is faring better than many parts of the country," he said.