Sunday, January 20, 2013
Flattened houses worth less
From the Daily News:
Residents of the Rockaways are facing another big blow: Hurricane Sandy has slammed their property values.
The average price of a home in the storm-wrecked area fell by 30% to $348,095 in the fourth quarter of 2012 compared with the previous year, according to brokerage firm Douglas Elliman.
As closings were delayed by the superstorm and as buyers pulled out of deals, closings fell by more than 60% to 31, the lowest level in nearly six years.
Before Sandy hit, the Rockaways had been enjoying a rebound, with prices rising steadily, year-over-year, for four straight quarters.
“This is clearly a setback,” Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiles reports for Douglas Elliman, told the Daily News.
“I think we will see the Rockaways lag for the next couple years as homes are rebuilt.”
Robin Shapiro, the owner of Robin Shapiro Realty in Rockaway Beach, said several houses closed at reduced prices because they were severely damaged and were sold as-is.
“There are a few brokers in the neighborhood who are looking for a quick buck,” Shapiro told the News.
But Shapiro said the recent price declines are a temporary setback.