Joe Moshé Says Long Island Home Sales Show Real Estate Market is Improving, But Fewer Contracts May Impact Sales in the Future

John Mitty Saturday, July 14, 2012

FOR IMMEDIATE RELEASE
Contact: John Zaher/Hank Russell, PRMG New York
(631) 207-1057

July 13, 2012

Joe Moshé Says Long Island Home Sales Show Real Estate Market is Improving, But Fewer Contracts May Impact Sales in the Future

Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says the new home sales report in June for Long Island shows promise for the Real Estate market but added the decline of homes going into contract might start a negative trend in the coming months. Mr. Moshé also said that rising home prices and a shrinking inventory mean that the Long Island Real Estate market may have finally hit bottom.

Multiple Listing Service of Long Island reported today that while the number of closings during the month of June was 8.9% higher than in May — 2,408 closings compared to 2,211 the month before — the number of houses in contract fell by 7% from 2,984 homes in May to 2,774 homes last month.

“Those who closed on their sales saw a bright spot in the economy at the time and took the opportunity to buy the house of their dreams,” Mr. Moshé said. “Those who bowed out of the contracts had a pessimistic long-term view of the economy and did not think they would have the extra money to purchase that home they wanted, so that it why many of the contract agreements fell through.”

MLSLI also reported that median home prices on Long Island rose 2.9%, from $350,000 in May to $360,000 in June. In addition, there were fewer houses on the market last month, with only 29,943 homes for sale — a 1.9% decrease in May’s figure of 30,072 homes.

“The rise in home prices show that the housing market on Long Island is turning a corner,” Mr. Moshé said. “Prices have already hit bottom and I do not expect them to go much lower, if at all. With Long Islanders buying more new homes, the demand will be greater and prices will also increase to reflect the demand. However, the Long Island Real Estate market will not recover overnight; it may take months — maybe years — to be fully healthy.”

“The missing element is this forecast is the sales of short-sale inventory,” Mr. Moshé added. “We have yet to see the total inventory on the market.”

Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 1,300 Agents associated in Long Island, Queens, Westchester, the Boroughs and Manhattan. For more information, call (516) 575-7500, or visit www.crrli.com.

jmitty@longislandyellowpages.com

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