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.”