Sometimes, the distance between a rebounding housing market and one still struggling to recover is only a matter of miles.
Pro Teck Valuation Services, Waltham, Mass., said perhaps nowhere in the country is this gulf more evident than in Nassau and Suffolk counties on Long Island in New York. The company’s Home Value Forecast said while the dichotomy between hot and cold markets can be seen across the country, the Long Island Core-Based Statistical Area serves as the most recent “poster child” for the growing housing gap.
The report said the Nassau-Suffolk CBSA ranked seventh in top ten CBSAs, showing healthy trends across the board. Sales up by 11 percent, but active listings are down by 44 percent and Months of Remaining Inventory is down by nearly 50 percent. Another sign pointing to an improving market includes Active Days on Market at 41, a 55.43 percent drop.
“All of this signifies a seller’s market,” said Pro Tech CEO Tom O’Grady.
Pro Teck said one community within the Nassau-Suffolk CBSA that serves as an example of just how hot the housing market can be is in Roslyn, where real estate is at a record high with an average home price just shy of $1.2 million.
However, other communities within the same CSBA still have difficulty gaining traction in the housing market. Island Park, N.Y.–less than 20 miles away from Roslyn–is a world apart, with home prices that peaked close to $500,000 in 2006 are now averaging just $288,000.
“We like to say that all real estate trends are local, and what’s happening in one community doesn’t translate to the next,” O’Grady said. “This is very true in Long Island, where the differences between wealthy communities and the rest is significant. This is why averaging CBSAs does not show the entire picture, and while the real estate rebound is a reality in many communities, but there are still those lagging.”
The report said of the 143 ZIP codes tracked in the Nassau-Suffolk CBSA, only 28 communities, 19.6 percent total, have exceeded pre-crash home price highs. But O’Grady noted as the recovery continues, “we look for that number to increase.”
The report’s top 10 CBSAs this month include:
–Boise City, Idaho
–Portland, Ore.
–Sacramento, Calif.
–Seattle
–Stockton, Calif.
–Los Angeles
–Nassau-Suffolk, N.Y.
–Portland, Maine
–Riverside/San Bernardino, Calif.
–Oakland, Calif.
“Oakland, with its close proximity to San Francisco and ‘up and coming’ reputation, is seeing a boom in many of its neighborhoods and boasts the lowest Months of Remaining Inventory in our Top Ten at 2.55,” the report said.
Bottom 10 CBSAs this month include:
–Midland, Texas
–Billings, Mont.
–Virginia Beach, Va.
–Racine, Wis.
–Rockford, Ill.
–Atlantic City N.J.
–Gary, Ind.
–Jackson, Miss.
–Jacksonville, N.C.
–Madison, Wis.
The report noted in Madison, Oscar Mayer announced it would close the local plant and move 1,000 jobs out of the community. “This seems to be having a similar impact as Midland, TX is experiencing with the loss of oil industry jobs,” Pro Teck said.
