Home Economics: Living On Long Island May Soon Become More Affordable As Housing Prices Continue To Fall (Money)

Comparatively speaking, Long Island is one of the most expensive places to live, but that may soon be changing. In fact, according to statistics, it's already begun to change. And, the trade is one that is sweeping the real estate nationwide.

According to the National Association of Realtors home prices continue to drop for the fifth consecutive month in August by a reported 0.5 percent.

As a result, the average price of existing homes dropped to about $225,000, an almost 2% decline from the previous August, making it the first year-over-year price drop in over 11 years.

Additionally, the weak real estate market in existing home sales, impacted the construction of new homes and apartments by a 6 percent decline in August, the lowest level of construction activity since early 2003.

This, all on the heels of a housing market that had reaped the reward of five years of record sales; a boom that ended due to increasing mortgage rates and a declining economy.

And, according to the experts, the decline was expected as more and more sellers lowered their asking prices to meet more realistic values in the face of supine sales and escalating inventories; inventories (of unsold home) that soared by 1.5 percent, hitting an all-time high of 3.92 million units.