FOR IMMEDIATE RELEASE

Mortgage Problems Disrupts Long Island Housing Market

October 9, 2007 - West Babylon, NY - Recent problems in the mortgage industry have taken its toll on the Long Island real estate market according to September housing figures released by the Multiple Listing Service of Long Island, Inc. (MLSLI) Thirty percent less contracts were written in the month of September, as compared to September 2006 which can mostly be attributed to the recent sub-prime scandal and overall credit crunch that is being felt across the country. Prior to the September figure of 1,903, the number of contracts written per month were relatively stable and remained over the 2,500 mark steadily since January 2007.

According to the September housing figures released by the Multiple Listing Service of Long Island, the contracted median home price for Long Island was $415,000, which represents a 4.9 percent decrease over last September’s figure of $436,400. Contracted median home prices were down from a year ago for all three counties and were reported as follows: Nassau County - $445,000; Suffolk County - $380,000; and Queens County - $446,000. The closed median home price for Long Island was reported at $430,000, a figure that represents a 4.5 percent drop over last year’s median price of $450,000.

Inventory levels remained relatively unchanged in the past few months hovering around the 36,000 mark and September was no exception. With ample inventory to consider, Realtors® are saying that generally speaking, homes are staying on the market longer because buyers have more to options to choose from so naturally the process is taking longer.

Looking ahead, industry experts believe that there is a pent-up demand for homes by qualified purchasers and once unleashed, it will draw down the inventory resulting in balanced market conditions. Joseph E. Mottola, CEO LIBOR/MLS says, “The recent housing stats are a reflection of the recent tighter lending standards placed on borrows over the past few weeks. When the elements of the mortgage market regain stability, then likely there won’t be any more problems in terms of securing financing so these purchasers waiting in the wings will regain their confidence in the market, make their purchase, and we’ll begin to see the market start to rebound.”

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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 2,350 participating real estate offices. For more information about the MLS, and Long Island real estate, visit our web site at www.mlsli.com.