5/14/08

Long Island Home Prices Up; Affordability Gap Widens

Long Island median home closing prices ticked up a bit from $409,000 in March to $415,000* in April. By comparison, the median closing price a year ago was $440,000.

However, home affordability is still a major issue on Long Island. Using the Homes for Working Families' home affordability price to income ratio of 3.46:1**, the median priced home on Long Island is 42% ($129,000) too expensive for the average family ($84,378*** median household income).

Is the uptick in median closing prices indicate an end to the price slide? Or is it a temporary blip in a continuing downward price correction? Unclear. What is certain is that in terms of affordability prices have a longer way to go to align with the income levels of the island's working families.

Here are the median closing prices changes for the counties included in the Long Island Multiple Listing Service:

______________4/07_______3/08___________4/08
Nassau________473,000_____445,000_______447,000
Suffolk________400,000_____365,000_______370,000
Queens________466,400_____420,000_______439,900
LI/Queens_____440,000_____409,000_______415,000

* Median home closing prices for April, 2008
**Statement by Beverly Barnes, Executive Director of Homes for Working Families, on Q1 2008 Significant Home Price Declines Reported by the National Association of Realtors Today
***LONG ISLAND INDEX: Working Together in New Ways for Long Island’s Future - pg.5

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