Newday Aricle - (RE Market) Are They Blowing Up or Blowing Over?
Very interesting article ...
Newsday Article
The median price in Suffolk in August was $320,000, up 14.2 percent from the same period a year ago while the median price in Nassau was $405,000, up 9.5 percent
'We don't feel there is a bubble,' says Camille Giardina, a sales associate at Coldwell Banker Surf based in Oceanside.The market has been 'phenomenal' in the last five years, but prices appeared to have spiked in the summer of 2002, Giardina adds. 'Now they've leveled off, even before interest rates began to increase.'
For buyers who can wait, Sklarz predicts that price appreciation in the Long Island and New York City area will largely fizzle within the next two years, if interest rates rise to between 6 percent and 7 percent - his 'best estimate.' Next year, appreciation will decline to between 4 percent and 6 percent, and in 2005 it will slump from 0 to 4 percent. 'Prices will basically be flat to slightly down for the next four to five years, 'This is typical of real estate markets which have had big moves - that is, prices move sideways for an extended period of time which allow fundamentals [such as median income growth] a chance to catch up. It doesn't support the crashing bubble scenario.'
Newsday Article
The median price in Suffolk in August was $320,000, up 14.2 percent from the same period a year ago while the median price in Nassau was $405,000, up 9.5 percent
'We don't feel there is a bubble,' says Camille Giardina, a sales associate at Coldwell Banker Surf based in Oceanside.The market has been 'phenomenal' in the last five years, but prices appeared to have spiked in the summer of 2002, Giardina adds. 'Now they've leveled off, even before interest rates began to increase.'
For buyers who can wait, Sklarz predicts that price appreciation in the Long Island and New York City area will largely fizzle within the next two years, if interest rates rise to between 6 percent and 7 percent - his 'best estimate.' Next year, appreciation will decline to between 4 percent and 6 percent, and in 2005 it will slump from 0 to 4 percent. 'Prices will basically be flat to slightly down for the next four to five years, 'This is typical of real estate markets which have had big moves - that is, prices move sideways for an extended period of time which allow fundamentals [such as median income growth] a chance to catch up. It doesn't support the crashing bubble scenario.'
