Buying and selling real estate in the communities of Long Island
Long Island's home price recovery continues
Long Island has been notoriously slow in recovering from the collapse of the housing market. As has been widely noted, the New York metropolitan area was one of the last markets to suffer the consequences of the bust, and, consequently, it's been one of the last areas to emerge from the depths of the crisis.
The phenomenon counters the first-in, first-out pattern that much of the U.S. Southwest experienced. In Phoenix, for example, prices fell by more than 56.5 percent from their May 2006 high, but the city has seen annual price gains in every month of this year, according to data from the S&P/Case-Shiller Housing Price Index.
Now, it finally appears that residential real estate values in Suffolk and Nassau counties have also regained firm footing. As reported on Newsday's business blog, the median closing price for a Nassau home increased 5.8 percent year-over-year in November to $400,000. In Suffolk County it inched up 1.1 percent to $313,500, according to data released Wednesday by the Multiple Listing Service of Long Island.
For Nassau, November marked the fourth consecutive month of year-over-year increases. Meanwhile, in Suffolk, prices have been on the upswing since June 2012, with a hiccup in September when the median price of a home sale slipped 3 percent.
So evidence is mounting that Long Island's housing market has already bottomed out and is fully in recovery. However, many housing analysts expect the price gains to remain modest as a backlog of foreclosures still exists on the Island.
Outside of Florida, the percentage of mortgages in foreclosure is higher on Long Island than in any of the 25 markets tracked by analytics firm CoreLogic, according to a report released earlier this month. Worse, the year-over-year increase in Long Island's foreclosure inventory is third highest in the country.