Signs point to slowdown in hot real estate market on LI
Homeowners across Long Island have been cashing in on the hot real estate market for years, but now there are signs the market may be slowing down.
Loretts Snyder, of Elmont, recently put her home on the market. Real estate agents say a few months ago her house would have been sold quickly. However, due to the increased number of houses on the market, they say it will take a little longer to find a buyer. Real estate agent Peter Caruso says the high prices have led to a 50 percent increase in the number of homes for sale from January 2005 to January 2006. The median price of a Nassau County home sold for $482,000 in December, down from $500,000 a few months earlier.
Real estate experts are warning that the boom can only last so long. Economists say the increased number of homes for sale will eventually lower demand and drive down prices. Caruso expects a 6 to 10 percent correction in the next six months to a year.