Spring Brings Renewed Hope For Port Jeff Area Real Estate

Nationally, there is talk that we are seeing a "double-dip" in prices in the housing market. While I  have been very hopeful that we would be looking at a slow, but steady (and let me re-emphasize the slow) growth in both number of sales and prices in our area, the MLS data I researched gives a partly-cloudy impression.

First, let me tell you that Port Jefferson and Port Jefferson Station sales volume held its own. Actually there was no change in the median home price in Port Jefferson and the total number of sales was up from the same period last year (total number of closed residential transactions which occured between Janury 1 and March 31, 2011 compared with the same period in 2010 in the 11776 and 11777 zip code using data pulled from the Long Island Multple Listing Service). 

Port Jefferson Station saw a slight decrease in total number of sales and the same is true of the median sold price when comparing the sales to the same period last year (a decline of about 5 percent for both).

Sales are down a tad from last year, but I see this as great news. Comparing data from 2010 it is imperative to remember that this time last year we were heading toward the expiration of a major tax credit incentive implemented by our Federal government. The looming expiration caused many buyers to rush to the closing table to take advantage of some extra dollars when their sale might have instead been recorded into the 2nd or even 3rd quarter of the year under typical circumstances. This expiration then caused a major dip in sales afterwards, which may skew our future numbers this year as well. With the number of sales we achieved in 2011 (with no credit) sales show signs of a much healthier market, even heading toward perhaps "normal" levels, if we can even remember what normal even is.

The difference between the specific areas can be attributed to the number of properties which are still undergoing "short sales" or foreclosures, which have a greater impact on the stability of prices in a neighborhood. According to the National Association of Realtors, a short sale typically sells at a 17 percent discount, and a foreclosure typically sells at at 22 percent discount. When competing against a discounted property, the average seller has to lower their price a bit too. About a quarter of the 30 single family homes sold in the 11776 zipcode were short sales or foreclosures. Until all the inventory of distressed property has been sold, we will continue to see downward pressure on prices.

Realtors faces brighten along with the sunshine of a warm spring day, due to the furry of activity now at open houses, and the increase of showing appointments.  Spring is here, and with a spring market, we see an increase in buyer demand. With increased demand we can hope to lessen the downward pressure on prices.

1st Quarter Sales figures* 

* While MLS data is deemed reliable, no guarantees are made to its accuracy, and this reporting does not take into account private sales which may or may not have been recorded.

Amanda Eckart is a licensed Sales Person with Realty Connect USA and Port Jefferson resident. She has over 12 years of experience assisting home buyers and sellers. She can be reached at 631-404-2215  or by email at aeckart@realtyconnectusa.com. Also on the web www.thedownport.com