The Dix Hills, Melville, Half Hollow Hills School District 3rd Quarter, 2009 Housing Market Report continues to show some improvement-both in sales numbers and sales prices from the previous two quarters of 2009. However, both numbers are lower than those in the same period in 2008. The 3rd Quarter, 2008, Dix Hills, Melville, SD#5 MLS stats indicate that the Median Selling Price was $740,000 vs. $651,750 in 2009 (or down about 12% from last year). The number of houses sold is down some from last year also: 83 homes closed during the 3rd quarter of 2008 vs. 70 homes closed in 2009 for the same period.
Record low mortgage interest rates and the $8000 Tax Credit Program for the 1st-time homebuyer have been the driving forces behind the improvement in the housing market. Note that 2/3 of the homes sold were in the $300,000 – $799,999 price range. The absorption rate for each price range varies considerably though-from about 4 1/2 months for a home in the $300,000-$399,999 range to about 45 months for a house in the $1.4M to $1.7M price range. And no homes above that amount have closed during the last 3 months
There has been an improvement from the 1st and 2nd Quarters in both the Median Selling Prices and the Sales Numbers. For more information refer back to the 1st Quarter, 2009, Dix Hills, Melville, SD#5 Housing Market Report and the 2nd Quarter, 2009, Dix Hills, Melville SD# Housing Market Report.
Under Contract Stats offer the most current data to indicate the direction of the market. Even though we don’t know what the selling price is—the listing price at the time of contract is a figure to be looked at. It represents the price at which point a buyer presents an offer that is acceptable to a seller. How is that median listing price (at time of contract) different from the median selling price and the median price of available homes?
In the 3rd Quarter, 2009 the median listing price at time of contract is $674,450, in 2008 it was $799,450. About 15% less in 2009 than 2008. Sales numbers are stable—exactly the same number at this time last year.
The breakdown by price range of homes that entered Under Contract during the 3rd quarter follows the trend that we saw in the closed numbers. The most activity is in the $300,000 to $699,999 price range. The price ranges above $700,000 continue to show slower sales numbers along with higher inventory numbers. First-time homebuyers encouraged by the $8000 tax credit and low mortgage rates have had a positive impact on the housing market creating a movement from the “bottom up”.
Download .pdf of full report: Dix Hills, Melville, Half Hollow Hills School District 3rd Quarter Housing Market Report.
The market certainly is more active. More showings. More call-ins from buyer prospects. More confidence in the housing market. Less talk of waiting until the prices drop more. And once the government stops supporting low interest rates (probably sometime next Spring) —we anticipate much higher mortgage rates. Every point interest rise increases the amount owed on your mortgage about 10%. The actual cost of your home becomes significantly higher. Seems to me the best time to consider buying a home is now.
1st-time Homebuyers—Don’t forget that the $8000 Tax Credit expires November 30, 2009. You must be closed on a home by that date—unless the law is extended. For more information please contact me at email@example.com or 631-223-8549. Search for all homes on MLS at www.LIagent.com.