Despite the constant grim forecasts of foreclosures, and a rapidly declining market, there is a silver lining for some. It is a fantastic market for first-time homebuyers with good credit. Those buyers that were completely shut out in 2005 and early 2006 due to high prices, can now better afford a new home. In Bethpage today, there is even one home priced at $299K; a number unheard of in the last several years. In shopping out a mortgage rate, new homebuyers should investigate the many incentives such as "the closing cost assistance program" offered by Christine Dawson (516) 445-0521 at Welles Fargo. That particular program covers a maximum of 5% of the mortgage amount; however, there are some restrictions. Another possible silver lining is the fact that due to the downturn in housing, the Fed has lowered it's interest rate which MAY lower mortgage interest rates. Because of their cuts, there doesn't seem to be much pressure in the near future for mortgage rates to rise.
Other opportunities exist for investors seeking to purchase a multi-family home for rental income purposes. Currently, prices for homes are lower, and rents are stable. In addition, buyers looking to invest in a vacation home will find greater possibilities in areas that were previously unattainable, locally as well as out of state.
Compared to many other areas in the country, Long Island's market has held up considerably well. For example, people relocating to areas such as Florida, Texas, California, or Las Vegas will be buying homes in markets that have depreciated more than ours.
Other buyers that benefit in a down market are those that are wishing to trade up. While you may sell your home for 10% less; the more expensive home that also sells at 10% less will ultimately save you money in the end. (There are forecasts that suggests the higher end are experiencing greater percentage declines) This is better than trading up in an appreciating market.
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