The housing landscape got bleaker in 2010 for much of the country, but in New York things were less awful than in 2009, according to data released last week by the online real estate marketplace Zillow.com.
According to Zillow’s analysis, the metropolitan statistical area of New York, which includes New York City, Long Island and northern New Jersey, is expected to show a total loss in home values of $103.7 billion by the end of this year – a number that hurts less when you compare it to 2009’s $145 billion in losses. It’s also better than a number of other U.S. metropolitan areas studied, where home value losses in 2010 were often more severe than in 2009.
Long Island Board of Realtors president-elect Don Scanlon of Century 21 American Homes says he thinks the benefits of living on Long Island have protected the area from the types of losses seen elsewhere. “I think it’s because of what Long Island has to offer. Long Island has the parks, the schools. Even our lowest-performing schools on Long Island are superior to the higher performing schools of other areas. We have a lot to offer.”
But regarding Zillow’s analysis, he makes this distinction: “If you’re not trying to sell, you haven’t lost, so we need to put that into perspective,” he says. “I agree with Zillow that we haven’t seen as dramatic a price drop as in other areas. The price reductions, not the losses, haven’t been as severe as in other areas.”
In a recent HomeGain poll, 70 percent of New York State real estate agents surveyed said they expect home prices to continue to decrease in the next six months, but Scanlon says he doesn’t think that will hold true for Long Island. “As long as interest rates remain low, I don’t think we’ll see a lowering of prices. Prices have basically stabilized,” he says.