The national asking price of homes rose 5.1 percent from 2011 to 2012, according to real estate website Trulia. However, the figures for Long Island are not as robust. During the same period, Nassau and Suffolk counties combined saw an increase of .07 percent.
Jed Kolko, Trulia’s chief economist, has a few theories on why Long Island lagged. “New York has a slower foreclosure process than other states,” he says, noting that the process slows price growth. Job growth, which is important for housing demand, was slow as well, he says.
Another factor Kolko points to is that large Northeast metro areas, including Long Island, had a small housing decline in the bust. That means that those areas are seeing less of a rebound compared to markets such as Phoenix that suffered big declines. Since investors gravitate to ailing markets, those areas generally experience a boost in sales growth.
On the other hand, Long Island rental prices increased 6.8 percent year over year. Kolko says supply and demand drive that statistic. “If the market is tight, that causes rents to go up. ... Renters are fighting over fewer available rentals,” he explains.