REALTORMag.com’s recent article reported on a study performed by PMI Mortgage Insurance Company which showed that, of the 50 most populous metropolitan areas in the United States, Long Island was one of the top 20 housing markets that would see a further decline in housing prices.
Long Island was 19th overall as being the nation’s riskiest housing market. The factors that PMI took into effect were higher unemployment and foreclosure rates, excess housing supply and more volatile home prices. The riskiest market was the Miami-Miami Beach-Kendall, Florida area, REALTORMag.com reported.
PMI also determined the probability that home prices would fall within the next two years. According to PMI, there was a 91.5% probability that home prices in the Nassau-Suffolk area would see a decline in the next two years.
As stated before on this blog site, the job market will dictate what the housing market will do. Right now, more people are filing jobless claims, job creation is at a crawl and some local corporations are relocating off the island. Also, with the tax deductions for mortgages possibly being eradicated at the beginning of next year, that might mean even more foreclosures here on the island and increase the chances that home prices will fall even lower.
But there’s no reason to panic just yet. The New York State Labor Department’s recent report shows the unemployment rate for July holding steady at 8.2% and Long Island’s at 7.2%, which is higher than last month, but far below the national rate. The NYS Labor Department also said that 8,600 private-sector jobs were added to Long Island last month.
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