Text size:

Uncertainty casts shadow on city housing market

By Marlene Naanes | mnaanes@am-ny.com

1:54 PM EDT, May 20, 2008

Elizabeth Rodriguez has entered the housing market with a healthy dose of trepidation.

The high school guidance counselor just started looking for her first home in her Sunset Park neighborhood or in Staten Island, hoping to give her 9-year-old daughter, Raven, a backyard and herself piece of mind that she'll never have to move again. She said she's excited but also worried about taking on a mortgage when her gas bill is up threefold and soaring grocery prices have sent her looking for bargains at Costco more frequently.

"It's really scary," said Rodriguez, 40, a single mother. "Now I'm really scared about how I can afford to pay for everything."

Economic uncertainty has given pause to some New Yorkers contemplating buying a home or apartment. Some people are hesitant to buy in a recession, while others are worried about their jobs. To top it off, mortgages are harder to get, said Gregory Heym, chief economist for Terra Holdings, a city real estate firm. Some people are taking a little longer to buy, hoping prices will fall, brokers said.

Driven to buy now for stability for her family, Rodriguez went through a first time homebuyers program that helped her shop for mortgages. To make sure ends meet in today's economy, her sister will move in with her initially to help cover the payments, Rodriguez said.

"I'm excited and scared and everything in one, but I know its going to be worth it," she said.

Whether to buy now isn't, and shouldn't be, solely dictated by the economy, according to brokers.

"As far as buying now, we would always advise people to ... not try to time the market," Heym said, adding that history shows a buyer makes money after five to 10 years in an apartment. "I would say the best time to buy is when you find a place you love."

Heym said it is hard to predict where the housing market will go, but it's safe to say sales will fall in most areas and prices also should fall, but mainly in areas where the number of available units are rising.