Joe Moshé Says Consumer Prices May Affect Home Sales and New Home Construction

Joe Moshé, Owner/Broker, Charles Rutenberg Realty, says the rise in consumer prices — most notably the price of gas — may have contributed to the slowdown in housing starts and construction, as well as home sales on Long Island.

The Commerce Department recently reported that, although more permits to build new housing units was at a rate of 747,000 — a 4.5% increase over February’s number of 715,000 — housing starts in March fell to 654,000, compared to 694,000 the previous month. Meanwhile, the Multiple Listing Service of Long Island recently reported a decline in home sales and prices during the month of March. In Nassau County, home sales fell by 4.8% and prices dropped 5.2% from $385,000 in February to $265,000 in March, marking the sixth straight month of declines. In Suffolk County, home sales fell in March by 3.5% to 668 units and prices went from $300,000 in February to $299,000 in March — a 0.3% drop.

With a gallon of gasoline now exceeding $4 a gallon, consumers are seeing the impact beyond the pump. The Bureau of Labor Statistics recently reported that the Consumer Price Index went up 0.8% (food and gasoline are not factored in). “When people see an increase in prices — whether it is for basic necessities or big-ticket items — they are reluctant to make those purchases and may need to hold off until they have that extra money,” Mr. Moshé said.

Although the number of housing completions in March went up 1.4% to 440,000 from 434,000 the previous month, according to Commerce, Mr. Moshé said the number of completed homes will mean more unsold homes on the market.

“It may take months — or maybe years — before these homes are sold,” he said. “There is also a ‘shadow inventory’ of homes that is being held back by the banks and have yet to be released to the market. Although home prices may fall, if the dream of homeownership is still out of reach for many prospective homebuyers because of rising consumer prices or the stringent lending requirements imposed by the banks, there will be a double dip in the housing market which will greatly affect any possible recovery.”

Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 1,300 Agents associated in Long Island, Queens, Westchester, and Manhattan. For more information, call (516) 575-7500, or visit www.crrli.com.

About Charles Rutenberg Realty
Founded in 2006, Charles Rutenberg Realty of New York is one of the nation’s fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens, Westchester and Manhattan. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients’ financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.

Hank Russell, Public Relations Director
The Public Relations and Marketing Group
156 North Ocean Avenue
Patchogue, NY 11772
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hrussell@theprmg.com

This release was published on openPR.