The foreclosure crisis has pitted cash investor against home buyer even though both sets of buyers play a critical role in the vitality of a normal housing market. The incredible volume of foreclosures coupled with fire sale prices, listing agent and asset management practices and government incentives have created an unprecedented set of forces. In the hardest hit markets, investors win the competition half of the time and homebuyers are sent to the sidelines empty handed.

Housing affordability is the greatest it has been in recent history. Government programs generously offer billions in tax credits and stabilization grants to create new homeowners. But industry sales practices have worked against consumers from the start, making it impossible for them to take advantage of these programs.

Owner-occupants have the power to turn this cycle around. The more ownership there is in neighborhoods, the more vitality there will be in local communities. Social scientists have linked high owner-occupancy rates to everything from decreased crime rates to improved educational achievement for children.

To give disadvantaged homebuyers a badly needed break, the Department of Housing and Urban Development (HUD), Freddie Mac, Fannie Mae and a few lenders have implemented new policies that offer them purchase advantages. From 15-day waiting periods to measuring owner-occupant sales of listing agents to clear priorities on owner-occupant purchases in the offer process, these guidelines attempt to create inroads for owner occupants. This is just the beginning of home buyer-favored mandates that will force new behavior in the sales and management of foreclosures in local markets.

The Multiple Listing Service of Long Island, Inc. (MLSLI) reported a Long Island closed median home price of $380,000 for July 2010. This figure is slightly higher than $373,000 reported by MLSLI in July 2009 and represents closed sales in Nassau, Suffolk, and Queens County. Nassau County reported a July 2010 closed median home price of $435,000, representing a 6.1 percent increase over last year. Suffolk County reported a closed median home price of $341,500 compared to $349,000 July 2009. Queens reported a closed median price of $355,000 for July 2010, which was the same as it was reported in July 2009.

Between January and July of this year the total number of closed sales on Long Island has significantly exceeded closed transactions reported during the same time period in 2009. That is a result of the tax credit which was very effective in stimulating the housing market. However, as expected, now that the tax credit has expired, Long Island contracted sales have posted a 17.3 percent decrease from July 2009. There were 2,386 purchase agreements signed in July 2010 compared to 2,886 last July. This could be explained by the many would-be summer time buyers accelerating their purchases to take advantage of the tax credit.

In July, contracted home prices on Long Island were up and down amongst the three counties. Contracted home prices is a forward-looking indicator since it represents what deals have been recently written, not what deals have been closed. The July 2010 contracted median home price in Nassau County was $410,000 which represented a 2.5% increase over last July. In Suffolk County, the July 2010 contracted median home price slipped to $325,000, compared to $335,000 a year ago. Queens reported a contracted median home price of $350,000 which is 2.8 percent less than a year ago.

Industry experts predict that home sales in the short term are expected to slow before picking up later in the year providing the job market improves. Joseph E. Mottola, MLSLI CEO says, “To sum up the local housing market, would be to say that it is really trying to hold its ground until the job situation improves. Only after the employment picture begins to brighten will a stronger demand for housing be restored.”

The rise of wireless technology seems to be coming with a price, declining property values, at least to the residents of the Merrick and other communities in the town of Hempstead. The reason is because of the ugly wireless boxes posted on lamp posts in front of homes. The company called NextG from California has posted orange boxes in other to deliver their wireless service.

Several residents and a residential group called Merrick Gables Association have engaged in a lawsuit against the town of Hempstead. Apparently, because NextG is recognized as a utility by the state of New York and the Federal Telecommunications Act of 1996, allows which prevents localities from disallowing the placement of public utilities,  the lawsuit has very little merit.

What does this mean for those looking for a home in these areas: When looking for your home, this could be construed as bargaining power to talk the homeowner down some in price! Of course, you need to consider whether YOU would want these boxes in front of your home.

Even if you do not mind these boxes in front of your home and everything looks acceptable, you might want to complain to the homeowner about these boxes and negotiate a lower price!

*********************************************************************************

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at www.bestbuyerbroker.com or www.bestbuyersbroker.com

Nearly a quarter of all homeowners are sinking under a mortgage that is bigger than the value of their home.

Even Worse, that figure could rise to as much as 30% by the middle of next year as job losses and foreclosures climb.

In the city, those who owe more on mortgages than their homes are worth climbed to 12.5% in the second quarter from 10.3% in the first three months of the year.

Homeowners are being hurt by price declines. The estimated median value for single-family homes slid 12% from a year earlier in the 10th consecutive quarterly decrease.

About 25 million homes, or 48% of mortgaged properties, will be underwater as prices drop through the first quarter of 2011, analysts at Deutsche Bank wrote in a report released recently.

*********************************************************************************

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at www.bestbuyerbroker.com or www.bestbuyersbroker.com

A rash of positive housing data has given some analysts hope that the housing market has bottomed and an economic recovery is underway. But the soaring unemployment and rising mortgage rates could lead to a double-dip plunge for the housing market.

Home prices rose on a monthly basis in May for the first time in nearly three years, according to the Standard & Poor’s Case-Shiller Home Price Index. The improvement in the Case-Shiller index followed the release of several equally optimistic government reports that showed increases in home sales and housing starts, and a decline in inventories.

Home construction unexpectedly rose in June as well. Housing starts increased 3.6% from May to a seasonally adjusted 582,000 annual rate. And even while more houses were built in June, the number of available homes on the market went down.

The federal government’s effort to lower the cost of borrowing has been a big reason why the housing market has been able to stabilize over the past few months.

Mortgage rates fell to a record low 4.78% twice in April after the Federal Reserve announced its plan to scoff up mortgage backed securities. That led to a surge in mortgage and refinancing applications. But now it appears the Fed’s effort to reduce borrowing costs is losing momentum.

Higher mortgage rates aren’t the only thing daunting potential homebuyers either. Soaring unemployment also poses a threat to the housing market by eroding disposable income and consumer confidence.

The gains made in the housing market have been encouraging to many analysts and investors. But with Americans facing heavy job losses and higher mortgage rates, it’s hard to imagine how they will be sustained.

Only time will tell, of course, and as with every recession before this one, no one will know exactly where the bottom is until it’s too late, and we’re all looking back and recognizing that the bottom passed months ago.

*********************************************************************************

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at www.bestbuyerbroker.com or www.bestbuyersbroker.com

Fixed-rate mortgage rates, though not directly tied to the Fed Funds Rate, have been responding positively to market rate cuts over the past few months.

Just as an overview, the Fed Funds Rate has a strong (if not direct) affect on the following:

• credit card rates
• adjustable-rate mortgages
• interest on savings accounts
• Prime Rate (home equity lines are based on this)

If you’re considering refinancing or purchasing a home, now is the time. With rates at these levels, you’ll enjoy more house or mortgage for the same payment. Just lowering your rate 1% on a typical $200,000 mortgage can save you about $125 a month or $45,360 for the life of your loan.

And don’t forget, housing prices are the lowest they’ve been in generations. The opportunity to purchase a home with a low price and low rate is unprecedented. Real estate investors who do their homework and invest wisely can also get deals they couldn’t have even dreamed about just a few years ago.

Thanks to the Fed Funds Rate dropping to the lowest level in history, mortgage rates have also dropped.

Waiting may be one of the costliest decisions you’ve ever made!

*********************************************************************************

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at www.bestbuyerbroker.com or www.bestbuyersbroker.com