FOR IMMEDIATE RELEASE

Rising Inventory Brings Balance to Marketplace

October 31, 2005 - West Babylon, NY – Two things are beginning to happen in the real estate market….a stabilizing of prices and the inevitable balancing in the marketplace as inventory levels move up. In September, the Multiple Listing Service of Long Island Inc. (MLSLI) reported monthly available inventory at over 22,000 residential properties, representing a 35% increase over last year’s figure. For quite awhile, inventory has been growing while prices continued to increase but it appears now that sales and pricing are not paralleling inventory growth.

Joseph E. Mottola, CEO LIBOR/MLS explains that as a result of rising inventory, buyers are taking more time to decide and sellers are reacting to this by being more flexible with terms as they are lowering their expectations and prices. Mottola states, “Buyers are not making offers on properties until the asking price is very close to what they are willing to pay. This emphasizes the point that sellers should list their homes at a realistic value, or expect to have to reduce their prices significantly before they will get offers.”

This doesn’t mean the market is not experiencing brisk sales because it is, but the sense that it’s a sellers’ market is on its way out. It doesn’t mean it’s a buyers’ market either. It speaks to balance.

While overall prices are steady, the increase in inventory has recently led to a slight softening in contracted home prices. September contracted average home price for Long Island (Includes Nassau, Suffolk and Queens County) was $505,200, which is 8% higher than a year ago, but slightly less than a month ago. Closed median home prices have remained relatively unchanged since this July.

For the balance of 2005, there should be a cooling in the rate of price increases, with annual price appreciation figures returning to historic moderate norms by year end. However, the overall market should continue to slightly favor sellers who are realistic in their pricing.

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Press Release Contact:
Tricia Chirco
Marketing & Communication Director
631-661-4800 Ext. 345

The Long Island Board of REALTORS® is a non-profit trade association consisting of more than 24,000 professional Realtors. For more information about LIBOR, or to locate a Realtor in your area, visit our web site at: www.mlsli.com.