DiNapoli: Housing Downturn Continues to Impact New York
Downstate property values declining; Foreclosure hot spots in 20 Counties
Even though New York has fared better than many other states, the housing market conditions continue to threaten homeowners with foreclosures and reduced home values, according to a report released today by New York State Comptroller Thomas P. DiNapoli. Foreclosures, a soft housing market and declining property values can impact local government and school district finances, particularly downstate.
“Every New Yorker has felt the impact of the housing crisis in some way or another,” DiNapoli said. “New York is fortunate to have had fewer foreclosures than many other states. But we’re not out of the woods yet. The weak housing market is just one more indicator that we have a long, slow recovery ahead of us. And even though we’re not as bad as other states, that’s not much comfort to New York families that are losing their homes. We have to keep working to help families avoid foreclosure."
By the beginning of 2010, the decline in home sales and the increase in foreclosures in New York appeared to have leveled off. However, property values continue to decline in Long Island and the Hudson Valley regions and the housing market is still performing below the 2006 pre-crisis levels.
Overall, twenty counties in New York appear to be facing higher than normal potential foreclosures. Many localities, including 23 percent of school districts, nearly 30 percent of cities and 16 percent of counties experienced a reduction in property value from 2008 to 2009. Over 90 percent of school districts with declining property values are located downstate.
The following highlights were also included in the snapshot:
- In the first quarter of 2010, one in every 657 New York homes was in foreclosure, compared to one in every 138 nationally. More than 50,000 homeowners in New York faced foreclosure in 2009;
- Home sale prices dropped more than 15 percent from 2007 to 2009; and
- Foreclosures increased 35 percent between 2007 and 2009 downstate. With over 10,000 foreclosed homes in the first quarter of 2010 alone, downstate represents over 83 percent of all foreclosures in the state.
DiNapoli noted that the New York State Division of Housing and Community Renewal recently announced the availability of grants totaling $9.6 million to help homeowners avoid foreclosure. In 2009, DiNapoli created Your Money New York,a financial information website. The site includes information to assist New Yorkers with questions about home ownership and borrowing for a home.
For a copy of the report visit: http://www.osc.state.ny.us/localgov/pubs/research/snapshot/0610snapshot.pdf