Using the “b” word

From the Long Island Business News:

Kellner: Listen to the pop
By Dawn Wotapka Hardesty

As Long Island’s housing market continues to soften, real estate executives refuse to utter the “b” word: Bubble.

But one area economist isn’t afraid to use it.

“In the bubble areas, i.e. long island, things are really coming down quite quickly,” said Irwin Kellner, a Hofstra University professor and North Fork Bank’s chief economist, as he addressed the Long Island Business Development Council’s 37th annual conference on Thursday. “You don’t need me to tell you this.”

Nassau’s August median home price fell by 1 percent versus the year earlier, the first time since “way back in the 1990s.”

And inventory has soared by as much as 75 percent in some areas, Kellner told the group of Long Island’s key economic development players and real estate developers.

“The housing market bubbled up in a way that it had not before,” he said. “There’s lot of froth that has to come out of that market and I don’t think it’s going to come out any time soon.”

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9 Responses to Using the “b” word

  1. Penguin says:

    People still have no clue and are greedy. My wife and I made an offer on MLS # 2287320 for 170,000. If you read the description its a lie. There mold or fungus in kitxhen cabinents, part of the countertop pulls 10″ off cabinents. kitchen needs total revamp. Carpets are dingy and nasty. Must be replaced. plumbing seems old and may need updating. 2.5 bath need total gutting and upgading. All windows need to be replaced. And many other things. The place is empty an been on the market for a while.
    when giving our offer we wrote a letter explaining our offer. But they want to get in the 3’s for it lol i got pics of the inside so I have proof. Just goes to show people need to take there head outta the ground. And realize no one will pay there jidiotic prices anymore But there are plenty of other places forus to lowball on and we have time so like many other buyers be picky and keep the lowballs going.

  2. Richard says:

    i can’t see how inventory gets taken down unless prices retreat. there just isn’t enough qualified buyers to sop up at existing price levels, plus as we all know the RE market is a chain effect needing someone to buy an existing property before the current owners can move up (or down) to the next.

    a family member is trying to sell their place in plainview. it’s a great street and a decent house but the price is in the mid $700’s. i mean how many people can really afford that for a starter house? they’re getting more looks than i thought they would but seems everyone is too gun shy unless major concessions are provided which isn’t the case. eventually there will have to be as the world isn’t creating a fresh pool of buyers with near historic interest rates and growing inventory choices.

  3. Jamey says:

    Speaking of bubbles…

    Sure it’s on the water, but so is New Orleans’ 9th Ward…

    Without a doubt the (unintentionally) funniest thing I’ve seen in ages. Doleful piano music accompanies movingly edited soft-focus shots of vinyl trashcans, rusty propane grill tanks, tatty woodchip, and a weed-strewn sandlot. Hilarious proof of the maxim, “if you can’t say anything nice, don’t say anything at all.”

    All for only $400k. I’d give them $160k if they paid for demolition…

  4. Judicious1 says:

    “In the bubble areas, i.e. long island, things are really coming down quite quickly,” said Irwin Kellner…“You don’t need me to tell you this.”

    Irwin, since you’re their chief economist you should be telling them what’s going to happen, not what’s already happening. You should be filling them in on the strong possibility that this is the just “opening act” and the real show will be 2007-2008.

  5. vb4203 says:

    Help! Home for sale
    Notes from all over on the difficulties selling real estate.

  6. twice shy says:

    Grim et al,
    today’s Star Ledger has an interesting
    account of a kitchen renovation.
    you might check it out.
    memorable line: “It wasn’t until the
    last few years with the run up in real
    estate values that we had something
    even better than money: Equity.”

  7. charlie says:

    Things have got to get better

  8. Judicious1 says:

    vb4203 – I suppose some of former CNN/Money “Millionaires in the Making” will be showing up here. It’s interesting that this site no longer features young couples that own multiple residential properties, sometimes 3 or 4, as “financial geniuses”.

    Can you imagine having multiple investment properties with exotic mortgages right now that you couldn’t sell for more than you owe? I woldn’t be able to sleep at night.

  9. patient homebuyer says:

    Long island is a major bubble area and will be hit hard in the next 12-18 months imo

    taxes are too high, traffic is a nightmare and there is also a growing gnag issue as well

    oh the suburbs……….

Comments are closed.