We are looking to relocate to Amityville, Copiague or Babylon (south of highway, preferably waterfront/eg.canal) NY and were hit with sticker shock.

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.

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.

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.

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...

Are you thinking Long Island is a place and you will travel there if you move.

Wrong.

Find a relocating board, PLEASE.

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