Home Buying in 10940>Question Details

JustLkg, Other/Just Looking in Middletown, NY

It seems that orange county homes are losing value.

Asked by JustLkg, Middletown, NY Sat Jul 7, 2012

Rockland, Ulster home values are increasing and let's not forget Manhattan. Any thoughts on why this is happening? I love Middletown but see no investment in the near future.

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John Olivero’s answer
Area home values increasing or decreasing depends on the criteria you are using to determine this. Are we looking at month to month, quarter to quarter or year to year sales results? Are we considering the number of transactions without consideration as to whether or not this number is up or down? And so on...

As to values of homes increasing in other areas surrounding Orange County but not in Orange County I will remain skeptical. Quite honestly, with the exception of Manhattan, I don't see that they are.

To address Middletown in particular as a viable investment option now or in the near future I say let’s look at the numbers. In the City of Middletown in the past six months there have been 78 properties either sold or under contract to be sold. (41 under contract, 37 sold). 22 of these properties are under $100,000.

If you look back 3 cycles of 6 months each you will see in sold activity alone 49 units, 43 units and 51 units. That's an average of 46.5 closed transactions in each of the past 4 six month periods. Or 7.7 each month or 1.8 a week.

I think if these transaction numbers would compare to activity in other areas, Middletown would look strong.

So I guess the question would be... What are your thoughts on a real estate investments? Is it to live in yourself or to rent out? What type of return on your investment would be needed for it to be a good investment for you? (Not always about what you pay, but how much you make and how long you hold on to it, etc.)

Depending on your answer will depend on whether or not this is a good time for you to invest in real estate in Middletown. It seems 1.8 other people each week are thinking YES!

Good Luck.
0 votes Thank Flag Link Sun Jul 8, 2012
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