FOR IMMEDIATE RELEASE

2006 Average Home Prices Up 3.5%

January 2007 - West Babylon, NY - There weren’t any surprises in terms of pricing and inventory when doing the final calculations on the year end housing statistics reported by the Multiple Listing Service of Long Island, Inc (MLSLI) As many industry experts predicted, 2006 home prices did increase but returned to a normal rate of appreciation in single digits for the first time since 1998.

The 2006 Long Island, which includes Queens, Nassau and Suffolk counties, average sales price for a home was $516,194, representing a 3.5% increase over the $498,896 average sale price reported in 2005. Individually, Nassau County reported a 2006 average sales price of $606,859, slightly higher than a year ago when it was reported at $601,192. Suffolk County reported a year ending sale price of $456,419, which represents a 2% increase over 2005’s average sale price of $446,944. Queens County bucking the trend, reported the highest county annual appreciation rate for 2006 with a reported average sale price of $493,253 which is 10% higher than 2005’s figure of $448,913.

The MLSLI December 2006 housing activity report showed that residential inventory was up approximately 30% over last year. In the month of December there were 27,446 residential properties available on the MLS system. This is another sign that the market has returned to normal conditions as compared to the less than average inventory levels that we began to see in 1999 and continued through the summer.

If buyers are waiting for large price reductions by sellers, it seems they may be disappointed. Joseph E. Mottola, LIBOR/MLS CEO said, “The MLS has been tracking the value of available inventory in recent months as an indicator of what is happening in the market in a now timeframe. The numbers show that the average and median prices for the inventory of houses in each county is about the same in December as it was in November.” Home prices are not tumbling as some predicted.

Overall, 2006 was good news for buyers and sellers with market conditions more in balance, prices stabilizing, and mortgage interest rates remaining attractive. Looking ahead in 2007, Donald Scanlon, MLS President said “Since early January we are seeing a significant increase in buyers attending our open houses. Feeling confident about the market conditions and the positive outlook of the economy, buyers seem ready now to get back into the market. It’s good news for everybody when the market is in balance.”

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Press Release Contact:
Christina DeFalco
Public Relations & Communications Specialist
631-661-4800 Ext. 358

The Multiple Listing Service of Long Island, Inc., (MLSLI) a subsidiary of the Long Island Board of REALTORS®, Inc.(LIBOR) is a computerized network of more than 2700 participating real estate offices. For more information about the MLS, and Long Island real estate, visit our web site at www.mlsli.com.