Diane Schubach

According to the Multiple Listing Service of Long Island, 40 homes sold in Port Washington in the first quarter of 2010 (11 in January, 16 in February, and 13 in March). The average listing price at the time of sale was $744,000 (compared to the original asking price of $774,000), and the average sold price was $694,000. The homes ranged from the low at $170,000 to just under $1.8 million. The average tax bill was $12,500 and average days on the market was 118.

As of April 1, there were currently 187 homes available (55 of those pending sale). The absorption rate is about 14 months. What that means is if no new homes come on the market, it would take 14 months to deplete the inventory. A healthy market is considered to be about 3-6 months, so our market is still sluggish. It is a big improvement over last year at this time though, when homes in Port were selling at a much slower pace, about 8 homes per month (the number of homes available and pending were about the same last year).

Port sellers are getting an average of 90% of their original asking price, which is about the same as last year at this time. And the average price of a home during last year's first quarter was (amazingly) almost exactly the same as this year's first quarter - $695,000. For comparison to the rest of Long Island, the average price of a home is currently $546,000. That is a 17% jump from last year at this time.

This article was first published on the Port Washington Patch on January 28, 2010

This is Part One in a weekly series on the many different neighborhoods of Port Washington.

As a real estate agent, I've heard the question from buyers, "Where is the best place to live in Port Washington?" Well, of course it depends on what you want (and how much you can afford). Manorhaven is one of the more affordable neighborhoods in Port.

The Village of Manorhaven (one of five villages in Port Washington) is known as "The Pearl of Manhasset Bay." Others call it a "diamond in the rough." But as a resident of Manorhaven, I call it a great place to live. With such diverse residences as houseboats for under $50,000, cottages, two-family homes, and $1 million condos, there is something for everyone. It also offers a variety of restaurants, small shops and services, houses of worship, a senior center, bus service to the LIRR station and much more.

A highlight of the village is Manorhaven Beach Park. It has a beach, pools, tennis, volleyball and basketball courts, a boat launch, picnic area and other amenities. The annual pass for the pool is very reasonable and well worth it. The park is in the section of Manorhaven known as Beach Haven.

The other two sections of Manorhaven are Orchard Beach and Manhasset Isle. Orchard Beach is where you'll find the pricey condos and the houseboats, and the Waterview Restaurant, a favorite of my husband's. Manhasset Isle has the Manhasset Bay Marina, Tom's Point co-ops, La Motta's Restaurant, and streets with unique Native American names like Nesaquake, Secatoag and Yenicock.

But Manorhaven has its controversies too, like the much-debated cell phone tower in Manhasset Isle, and the slightly annoying alternate side-of-the-street parking that is inconvenient even in good weather. Many new residents are initiated to the community by receiving parking tickets, and then trying to locate the sign and interpret the parking rules.

All-in-all, Manorhaven is a lovely community, and I wouldn't hesitate to recommend it to any buyer looking for a great place to start out or to downsize, to retire or to raise a family, or for anyone looking for a convenient commute to Manhattan.

If you are thinking of buying a house, now is the time to get serious. If you don't act soon, you will someday find yourself asking: "Why didn't I buy in 2010?" If you are a first-time buyer, or a current homeowner who meets certain requirements, there are generous tax credits available until the end of June 2010, but that's not the most important reason to buy now. The most important reason is: historically low interest rates - the lowest they have been in almost 40 years!

In 1970, interest rates were approximately 7.25%. Rates were near 10% in late 1973, and ranged from 8.5% to 10% by 1977. There was a drastic rise to a whopping 18% by 1981, and it took 5 years to recede to previous levels. From 1986 until the early 1990s, rates hovered at from 9% to 11%, and after that ranged from 7% to 9%. Until very recently, rates were about 6%-7%.

Consider These Facts

1. First, for more than 30 years, 7% was the low and 18% the high, and 6% only over the last few years.

2. Second, after the last long-term trend from low to high, it took more than 20 years for the rates to get back to where they were, and 30 years to actually start trending below the 1970 low.

3. Many experts believe, and historical trends show us, that as the economy stabilizes, it is likely that we will see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is back on track.

What Does this Mean to You?

Many potential home buyers are sitting on the sidelines, thinking that home prices have not stopped declining. That may be true depending on the area of the country you live in, but price is only part of the equation. Interest rates impact (1) the total cost of the house, (2) how much house you are able to purchase, and (3) your monthly payment.

1. Total Cost of a House: Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed loan. Assume for example that a buyer is borrowing $400,000. Over the life of the loan, each quarter-point increase in interest rates will cost that buyer $24,000.

2. As the economy stabilizes, it would be reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and settle at a range of 7% to 8%. In other words, at 5%, you may be qualified to borrow $400,000, but at 6%, you may qualify to borrow significantly less. The rule of thumb is that as the interest rate increases a quarter of a percent, the amount you can borrow decreases by about $10,000.

3. Assuming that points 1 and 2 don't impress you, let's talk about something more tangible - your monthly payment. Many buyers think that prices have not reached bottom (even though prices have been trending up slightly in many areas). Going back to our $400,000 loan, at 5%, your payment (without taxes, insurance, etc.) would be about $2,150. Imagine that prices drop 15%. Your loan is now $340,000, but interest rates have gone to 7%. Your payment is now about about $2260!

The Market of a Lifetime

Of course it's not the right time to buy for everyone. People are worried about their jobs and the stability of the housing market in general. But over time, real estate has always been a good investment. If you have a good stable job, good credit, and the down payment, and are planning on being a homeowner now and/or in the foreseeable future, then pay more attention to interest rates than price. Don't find yourself several years from now saying "Why didn't I buy in 2010?"

These numbers are approximate and for illustration purposes only. You can confirm all of these numbers and assess your own situation with a mortgage consultant. Visit this website for more information.

The holiday season has begun. It seems to start a little earlier each year! There are many great things to do around town and here are just a few:

Christmas Tree Lighting - At Blumenfeld Family Park on Main Street, Sunday December 6th at 4:30 pm. There is no cost to enjoy this event with a live nativity, sing-along, refreshments, and a visit from Santa!

Christmas Mini-Fair - At St. Stephen's Episcopal Church, Sunday December 6th at 11:15 am.

The Klezmatics - At Landmark on Main Street, Saturday December 12th at 8 pm. The Grammy-winning Klezmatics celebrate the beginning of Chanukah's Festival of Lights with a variety of music: gospel, punk, African and more. Prices and details are on the Landmark website.

Menorah Lighting - At the LIRR station, Sunday December 13th at 4:30 pm. No cost for live music, gifts, donuts, latkes, and coffee. The same day from 12 - 2 pm at 80 Shore Road, there will be a free performance by Bubblemania, bubble menorah, and other bubble-themed things!

In nearby Clark Botanic Garden in Albertson (193 IU Willets Road), all are invited to celebrate the season with cookie decorating, train displays, and sing-alongs at Winter Wonderland 2009 - December 12th starting at 11:00 am.

Please feel free to comment on this post, or send me an e-mail.

The Port Washington Chamber of Commerce is compiling recipes from residents, restaurants, and businesses to be published in a community cookbook tentatively entitled A Taste of Port Washington. We invite you to participate in this exciting new project by sending in your favorite recipes. When the cookbook is published, your name will appear with each of your recipes that are accepted. If you wish to be identified with the Chamber, another organization, or your business, you can add the organization or business name in the space provided on the submission form, and it will also appear with your name, but this is optional.

Click here to download a copy of the Recipe Collection Form, along with the instructions on how to submit your recipes. You can fill it out and either print it out and mail or fax it, or fill it out on your computer and e-mail it to Bobbie Polay at pwcoc@optonline.net. If you have any questions, please e-mail or call 516-883-6566.

Please take a few minutes to read the instructions and fill out the recipe form. Your contribution will not only ensure the success of this project, but will give you a unique opportunity to participate in Port's first community cookbook.