Long Island Real Estate, will asking prices drop?
 

We are looking to relocate to Amityville, Copiague or Babylon (south of highway, preferably waterfront/eg.canal) NY and were hit with sticker shock.<BR><BR>Question: Will the pricing of real estate stay as is, or will housing prices drop slightly? I heard Long Island South Shore is at a peak right now and may drop a bit. What is your feeling and why.<BR><BR>Many Thanks.

As people can't afford real estate prices due to economic conditions, the prices could very well drop, or at least stagnate for a time. Supply, demand, and economic conditions.

since mortgage rates are so low now, most people are not lowering asking prices.

Prices might drop slightly, but I wouldn't expect the drop to be significant. Had ECON 101 taken Econ 102, they would have realized that demand is one part of the equation. Supply also comes into play.<BR><BR>The NY job market is tough which has probably scared off a few buyers, that is true. However, that same fear also impacts potential sellers who might be looking to trade up to a bigger home. The overall supply of new listings is down in the NY area. <BR><BR>You should keep the concept of a "price drop" in relative terms. At the peak of the market, houses were selling 10 to 20% above asking prices. I haven't seen that initial listing prices have dropped substantially.

And this is on a travel forum because...<BR><BR>Are you thinking Long Island is a place and you will travel there if you move.<BR><BR>Wrong.<BR><BR>Find a relocating board, PLEASE.

RAE: I demand you read my post and go back to rudimentary Econ 001.