Subscribe to This FeedLong Island Home Sales Median Price Rises by 3.29% in Second Quarter
| At the end of each quarter, we instinctively look for signs – positive or negative. Although the 2nd quarter numbers are not completely filled in (at this point in a typical quarter, approximately 80% of the previous quarter closings are recorded and published), the numbers point to an increase in the median closing price of private homes and condos.  A rise in the median price is typical in the 2nd quarter; however, this year’s increase is higher than any 2nd quarter increase in the past 5 years. For example, the 2006 increase was 1.01%, whereas the 2009 The Long Island median price increase of 3.29% is driven almost completely by Suffolk County’s increase of The median price in Suffolk County rose from $330,000 to $350,000, in Nassau County from $404,500 to $405,000, and on Long Island from $370,000 to $382,188. |
It is very important to disseminate this information about the increase in the median sales price in the 2nd quarter of 2009 to all realtors and, especially appraisers, because appraisals have been continually coming in below the contract price, and many of our transacations are now not going through. The main reason for this is that appraisers depreciate the closed sales that they are using in their reports by 1% to 3%, thus lowering the appraised value significantly. Since the 2nd quarter reports prove that the market is no longer declining, but rather appreciating, the appraisers must stop depreciating closed comparables.
Thank you so much for this very accurate and up to date information. It is great to hear that we are moving forward in a positive direction in our real estate market.
Pat, do you believe that the increase being higher than in quarters past is due to the significant drop in value experienced in the last year and a half? A lower drop = a higher increase, even if the increase is still well below bubble levels? Great info yet again- thank you!!!
This comment is in response to the question from Laurie Mindnich.
I do not believe the size of the increase is due to the lower value, aside from the fact that the lower value could be causing sales to occur.
The median has been going down steadily every quarter with the only increases occurring in the second quarter of the year.
Those increases have been small since 2006, and non-existent in 2008.
The reason I used percentage instead of dollar amount was to avoid misinterpreting the increase when comparing it to prior years.
I am anxious to hear your thoughts on the measurement methods and analysis.
It would be nice to know how the upper end of the market is doing. In other words, how these number look for homes that require the jumbo non performing loans. Since median simply means half of the homes sold for more than the stated amount and half sold for less, I wonder how many sold and at what price increase in this higher end market. My guess is that there has been a very substantial decrease in this higher priced market.ANd that the price bump is solely cause by the lower end taking advantage of the first time buyer program and FHA loans.