LI home prices and closings decline
Long Island home prices fell 4.2 percent last month from a year ago, and the number of closings declined, according to figures released Monday, as the economy pushed many house hunters to the sidelines, according to the Multiple Listing Service of Long Island. This home and its for-sale sign are in North Carolina. (Oct. 16, 2011) Credit: Bloomberg News
Local home prices fell 4.2 percent last month from a year ago, and the number of closings declined, according to figures released Monday, as the economy pushed many house hunters to the sidelines.
The Multiple Listing Service of Long Island, which released the data, said the median closing price for local home sales in October was $345,000. The median is the midpoint in a series of numbers. Prices were down 5 percent from September. The data include house sales in Queens.
There were 2,047 closings last month, down 2 percent from a year earlier.
"I just feel there are less people in the marketplace," said Peter Caputo, broker owner of ERA Caputo in New Hyde Park and a 32-year industry veteran.
Caputo Monday oversaw the downsizing of his office space, because prices and closings have fallen about 12 percent from a year ago. He's gone from 40 employees two years ago to 20.
The broker blamed high unemployment and tight credit for countering low interest rates and home prices. He has seen an "amazing" number of prospective first-time buyers, he said, but many don't qualify for mortgages. Repeat buyers often qualify, he said, but they can't buy until they sell their homes.
The Multiple Listing Service noted a bright spot: 2,159 contracts were signed in October, up from 2,071 in September.
That number is down 1.6 percent from a year ago, but the trade group said the month-to-month jump bodes well for winter activity.
Still, many local agents said more contracts are being canceled for various reasons -- house hunters losing jobs, for instance, or buyers tired of waiting months for lenders to approve sales of distressed properties.
On Sunday, the National Association of Realtors said 18 percent of members reported having contracts canceled in recent months, about double the level last fall.
Steven Pagano, a broker-owner in Huntington Station, blamed lenders for some contract cancellations.
"The failure of the banks to complete a timely transaction results in these people having a little more time to look at the market and maybe find something else that's more appealing to them," the head of Pagano Properties said. "They could go out one weekend and say, 'Oh my gosh, look at this house. Not only is it $15,000 cheaper than the one we're looking at, but it has one extra bedroom.' "
