Home prices on Long Island continue to decline!

This month Nassau County showed the largest decrease in the median home prices, Queens County has had the largest decreases year to date and Suffolk has had a steady decline to find the soft bottom.

My prediction is that the soft bottom should be reached when the counties reach the following median prices.

Nassau – 360,000

Suffolk – 295,000

Queens – 335,000

These prices approximately refect the median home value point, which will allow the median income (in it’s specific county) to comfortably purchase a home.

A few factors could cause prices to reduce below the value point:

1. Interest rates go up
2. Taxes go up
3. Economy is unstable
4. Over supply of homes
5. Additional foreclosures coming on the market