(Long Island N.Y.) This holiday season, couples on Long Island have a wrenching choice to make: celebrate Christmas or keep their home out of foreclosure.
As Long Island house prices continue to fall, mortgage rates for home owners with adjustable rates creep up to fearful highs creating premiums and mortgage payments that Long Islanders just can’t afford. And home owners aren’t the only ones feeling the squeeze.
Business owners across Long Island have long depended on the cash flow of the local consumer. Now, because of the housing slump and subprime loan crisis, there’s less money for homeowners to spend, contributing to lower profit margins for business owners and fewer employees to comfortably sustain. It’s just a loose-loose situation.
The greater New York area stands to lose more than $10 billion as a result of the recent subprime mortgage crisis, a new report says.
The region covering New York City, Northern New Jersey, and Long Island will be more severely impacted than other metropolitan areas in 2008, according to the study released yesterday by the U.S. Conference of Mayors.
Sales of existing homes fell to a record lows in October as banks tightened lending standards and prices fell at a record pace. The National Association of Realtors reported that sales by homeowners fell in October to an annual pace of 4.97 million, down from the revised September reading of 5.03 million. September had marked a record low since the trade group started tracking sales for both single-family homes and condos in 1999.
The median price of a home sold during the month fell 5.1 percent to $207,800 from $218,900 a year earlier. It marked the largest year-over-year drop in prices and the 15th month in the last 17 in which that key measure declined. Before the start of the current housing slump, it had been 11 years since prices fell compared to a year earlier.
Although foreclosures show no sign of letting up, equity markets in the US enjoyed one of their best days of the year after comments by Donald Kohn, the vice-chairman of the Federal Reserve, appeared to increase the chances of a cut in US interest rates next month.
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