Contracted Home Sales Edge Down While Prices Remain Stable

The Multiple Listing Service of Long Island, Inc. (MLSLI) reported a Long Island closed median home price of $380,000 for July 2010. This figure is slightly higher than $373,000 reported by MLSLI in July 2009 and represents closed sales in Nassau, Suffolk, and Queens County. Nassau County reported a July 2010 closed median home price of $435,000, representing a 6.1 percent increase over last year. Suffolk County reported a closed median home price of $341,500 compared to $349,000 July 2009. Queens reported a closed median price of $355,000 for July 2010, which was the same as it was reported in July 2009.

Between January and July of this year the total number of closed sales on Long Island has significantly exceeded closed transactions reported during the same time period in 2009. That is a result of the tax credit which was very effective in stimulating the housing market. However, as expected, now that the tax credit has expired, Long Island contracted sales have posted a 17.3 percent decrease from July 2009. There were 2,386 purchase agreements signed in July 2010 compared to 2,886 last July. This could be explained by the many would-be summer time buyers accelerating their purchases to take advantage of the tax credit.

In July, contracted home prices on Long Island were up and down amongst the three counties. Contracted home prices is a forward-looking indicator since it represents what deals have been recently written, not what deals have been closed. The July 2010 contracted median home price in Nassau County was $410,000 which represented a 2.5% increase over last July. In Suffolk County, the July 2010 contracted median home price slipped to $325,000, compared to $335,000 a year ago. Queens reported a contracted median home price of $350,000 which is 2.8 percent less than a year ago.

Industry experts predict that home sales in the short term are expected to slow before picking up later in the year providing the job market improves. Joseph E. Mottola, MLSLI CEO says, “To sum up the local housing market, would be to say that it is really trying to hold its ground until the job situation improves. Only after the employment picture begins to brighten will a stronger