“Have home prices recovered from the 2008 crash?” I am often
asked this question, and always answer cautiously, because we still see some
homes which were purchased at the peak of pricing in 2006-2007, selling at
prices lower than the purchase price at the peak of the market ten years ago.
A recent Wall Street Journal story* made me wonder how the
North Fork compared to the national statistics
quotes in the article.
The gist of the article is about home equity loans (Helocs) that
offered advantageous payment terms, “typically the borrowers were allowed to
pay back only the interest for 10 years.”
But after ten years, the payments reset to higher amounts including principal,
and banks feared that home owners could
not handle the much higher monthly payments.
The good news is that “U.S. home prices, after dropping throughout the
2008 crisis and its aftermath, have risen nearly 35% since the start of
2014. The median sales price of an
existing home was $252,800 in May 2017, according to the National Association
of Realtors, up from $187,900 in January 2014.” As a result of higher home
equities, banks have been able to refinance customers into new loans. Good news also: banks learned a valuable lesson
about working with their customers, adjusting terms, instead of letting the “system”
take over.
How did Southold Town do over this same period? The median sales price of an existing home
was $524,000 in April 2017, according to Suffolk Research Services, Inc, up
from $459,500 in January 2014 - very good news: an increase of 14%. Great news: in 2007 the median sales price
was $525,000 compared to $532,800 at the end of 2016. We have turned the corner, and recovered value
from the 2008 crisis. Based on our own
experience, the current trend, year-to-date, is continuing and we should hold and
possibly increase in value by year-end.
So, more good news: it’s a good time to buy and a great time
to sell! Don’t delay, call us at
631 765
5333 or email me at broker@BeninatiAssociates.com
or visit our website www.BeninatiAssociates.com.
We’re happy to help you with your purchase of sale here on the North Fork!
Sources:
* “Home-Price Rise Eases Bank Pain on Equity Credit Line,”
page B14, The Wall Street Journal, July
12, 2017.
Suffolk Research Services, Inc
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