Via the Long Island Business Blog, we note that in Forbes Magazine’s list of the USA’s most overpriced regions puts Long Island, N.Y. at number 7.
No. 7: Long Island, N.Y. – (Nassau-Suffolk, N.Y.)
Cost of Living: 40 of 50
Housing Opportunity: 48 of 50
Unemployment Rate: 17 of 50
Average Salary: 24 of 50
Indeed, though the median home price in the Los Angeles metro area has dipped from $525,000 to $319,000 over the last two years, Angelinos still face one of the least affordable housing markets in the country. According to the NAHB/Wells Fargo’s Housing Opportunity Index, only New York, Long Island, N.Y., and San Francisco are more expensive.
Obviously we talk a lot about prices here on HIB. It’s one of our favorite subjects. There’s been a lot of back and forth about this in the comments of late and I just wanted to weigh in a bit.
It’s really hard to know where prices are, at least in the short term. Median prices in the Village did actually go up a bit, but that’s very misleading. When you’re talking about a very small area with a small number of sales, changes in the median price reflect more a change in the mix of housing sold.
Two metrics we can look at, inventory and the difference in selling vs asking prices, point to a continued and sustained downward spiral in housing prices in the short and even medium term. The fact that these trends persist, even in the face of historic low mortgage rates, indicates to me that there’s still a lot of air in the housing bubble.
The bottom line is, houses aren’t appliances or cars. Each house is different and has its own individual price. There are good deals to be had, even in a hot market and there are bad deals (tons and tons of them) even in this terrible market.