This Month in Real Estate - August 2013 Market Update

Keller Williams Realty Landmark | 32-55 Francis Lewis Blvd. | Bayside | NY | 11358

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Housing Shortage on the Horizon?

by Cristina Callegari Kanellopoulos

It is probably a hard pill for most of you to swallow under the current economic conditions that we are headed towards a housing shortage. But, alas, this is exactly where we are headed.

In order for Developers to keep up with the ever growing U.S. population they must build approximately 1.6 to 1.7 Million new homes per year. This also helps cover the older homes that are demolished, or condemned, in addition to all our "new additions," (cheesy pun definitely intended).

During 2003 to 2006 home building was far exceeding the historical average. So much so that builders created a surplus of 1.3 Million units.

No one noticed the over-production because investors were gobbling them up with easy access to cash, and banks more than willing to lend to anyone. However, once the economy began turning, and all the ready cash was gone - the investors were forced to sell off their excessive inventories due to dropping prices.

So, from 2007-2010 builders/developers began under-producing housing units. As a result today, it is estimated that there are approximately 700,000 empty units above and beyond the normal and necessary levels.

That's a good thing, right?

Well, the answer isn't so simple.

If the economy doesn't begin to improve, and builders continue not to build we will bridge the gap rather quickly and we will begin facing a housing shortage.

This will once again inflate housing prices, and set the U.S. up for yet another housing bubble that will eventually burst.

What we need here is some balance and stability.

How do we achieve that? I'm not sure. But for all you builders and developers out there - I'd like you to know that if you build it - I can certainly sell it!

Have a safe and Happy Memorial Day Weekend!

East Meadow School District is a Contender: Watch Out North Shore!

By Cristina Callegari Kanellopoulos

Good news for residents in East Meadow Union Free School District #3 on Long Island arrived as the results of the 2008-2009 ELA (English Language Arts) and Math Assessments came in markedly higher than last year.

The School District has much to be proud of as the new scores indicate that programs and procedures implemented over the last several years are beginning to pay off. Some of the specifics are district programs that have been designed to improve instruction, and a series of professional development workshops with an emphasis on analyzing past test data to determine areas in which students need additional help.

The results are astounding! On the ELA Assessments, every grade level from 3 to 8 exceeded the county average, and in most cases, realized an increase in the number of students meeting proficiency. For example, in the 2007-2008 school year the percentage of students who passed the exam was 86%. However, in the 2008-2009 school year the percentage of students who passed the exam was 96%. Please see below for the full exam Results.

2008-2009 ELA Assessment Results:

Grade 3: 88%
Grade 4: 93%
Grade 5: 94%
Grade 6: 96%
Grade 7: 95%
Grade 8: 91%

2008-2009 Math Assessment Results:

Grade 3: 98%
Grade 4: 96%
Grade 5: 98%
Grade 6: 97%
Grade 7: 98%
Grade 8: 96%

These results put the East Meadow School District in line with, and in some cases ahead of, the high-performing Long Island School Districts of Roslyn, North Shore, Great Neck, Herricks and Port Washington. These districts are among the highest performing, most competitive school districts in the region, and the East Meadow results show that the school district means business.

This can only mean great things for the local Real Estate Market of East Meadow, and Salisbury (Salisbury is a Hamlet of Hempstead that is part of the East Meadow School District). Only time will tell, but I expect to see a boost in home prices if the school can keep this level of excellence up.

Kudos to you East Meadow Union Free School District!