Real estate has always been a valuable source of investment. After all, it’s a basic need of people to have a place they can call home. In some places such as New York, acquiring homes can be quite a lucrative business. In fact, realtors have made a niche in selling houses in different regions across the state. One of the more affluent areas in New York is Long Island. But while the value of properties in this city is considered to be high years back, it’s having an epic downturn as of late. This article will take a look at the downward trend of prices in Long Island real estate.
Just a decade ago, a spike in the value of houses was observed. This can be traced in a multitude of factors. The first factor that dictated this increase in value is much lower interest rates, which provided potential homeowners a great window to cash into properties. Lending standards are also looser back then. Last but not least, Wall Street has created a security system that is backed by subprime mortgages. Because of all these changes, the average value of properties in the Long Island area increased up to a high-water point of 460,000 dollars.
But the value of these properties started to go down after reaching its peak in 2007. And this downturn shocked even the most ardent of realtors. It’s considered as a disappointing turn of events for people who purchased Long Island real estate as a form of bargaining chip or investment. This downfall in prices is mainly caused by the financial crisis that struck America starting 2008. Short sales and foreclosures began to surface, and more of these mishaps are expected to come in the near future. All of a sudden, the real estate bubble has burst, and just about everyone was taken off-guard because of it.
But if there is any group of people who can potentially take advantage of this downturn, it would be the ones who are looking for a home right now. While realtors and homeowners are reeling at the thought of relinquishing their homes at a lower price than they initially expected, it’s the best time for buyers to potentially cash in. As it stands, the average price of real estate in Long Island is listed at 350,000 dollars. That accounts for major savings for those looking for properties right now. And it can be a potentially tasty prospect if the market value for these properties somehow recovers.
While it may not be the best time for investors of Long Island real estate, it can be argued that it’s the best time for prospective buyers. The potential is now ripe to get the home of your dreams at a discount.