Long Island Real Estate Market October 2011 - Muddling Along

Nassau County is on pace to sell 9400 homes this year about 4% less than last year's 9750. A couple of months ago it looked like we might break with last year's sales. Sales would have to be too much improved in the traditionally slow months of November and December for that to be a reality now. But considering and artificial stimulus of the buyer's tax credit last year and the slow growth in employment on Long Island the picture could be much worse and that is cause for some hope. The story in our sister county Suffolk is not as rosy. Last year there were 10375 houses sold and this year's pace is only 9600. That's about 8% less activity. The fact is when Nassau county real estate suffers then Suffolk County suffers more - since the demographic direction is from west to east. Normally homeowners in Nassau County need to sell their homes to buy their retirement home or condo in Suffolk. Young people ready to move up to their second house also tend to move to Western Suffolk from Nassau to get more property for their growing family. They have been the hardest hit because many of them had bought their first house at or near the height of the market. It will definitely take some time for the market to improve significantly but barring any worse economic news we are still projecting an uptick in activity for next year with little movement on prices.