Mansions Are Moving

An article in today's New York Times real estate section confirms what some Westchester real estate agents have been noticing over the last few months. While sales of lower priced homes have been stagnant, homes in the multi-million dollar range have been steadily moving on and off the market. Some of these homes have been reduced, sometimes by several million dollars, before selling. Nevertheless it is interesting to note the strength of this segment of real estate sales. While the article specifically references northern Westchester, the same is true of southern Westchester as well. Since September 1st in the Along the Sound real estate area, 19 houses at over $2mm have sold and another 21 are under contract. The median selling price was $2.8m for a 5 bedroom, 5 bath home with over 4300 square feet of living space.

November Real Estate Sales Along the Sound

November single family real estate sales in the area Along the Sound (Pelham, New Rochelle, Larchmont, Mamaroneck, Rye Neck, Harrison, Rye, Rye Brook, and Port Chester) declined from prior years. The number of homes sold is also down slightly from prior months. (In October 2010 there were 62 single family houses sold.) In addition, selling price/square foot fell below $300/sf, far below prices over the last four years. So while there have been reports of consumer confidence rising (see Wall Street Journal article), this has not had a trickle up effect in real estate sales. Buyers seem to be firmly in control of this market. On the plus side, days on market for November 2010 dropped significantly from 156 last year to 131 this November, approaching the average market time of 2006 and 2007.

 Consumer Confidence: From the Wall Street Journal: 

"A separate report Tuesday showed that consumers are feeling a bit better about the economy in spite of the woeful housing market. The Conference Board, a private research group, said its index of consumer confidence increased to 54.1 in November from 49.9 in October. While confidence remains low by historical standards, the November reading was the highest since June."

Anomaly?

One interesting item is that in November there were 13 homes sold for less than $500,000 and only one for more than $2,000,000. In October, there were 10 homes sold for less than $500,000 and 8 for more than $2,000,000.

On the Market

Currently there are 687 single family houses for sale in the eastern part of Westchester. The median asking price is $850,000. The asking price is well above the past month’s median sales price (although in line with the year-to-date selling price), showing a disconnect between the price sellers are seeking and what buyers are able to pay. And I mean able, not willing. Mortgage rates are rising and the job market is still relatively uninspiring with unemployment at high levels. Banks are not rushing to give mortgages, so buyers may be willing to buy but unable due to lack of financing.

In the Pipeline 

There are 165 single family homes under contract Along the Sound. Year-to-date we have had 936 homes sold in this area of Westchester at a median price of $830,000. They were on the market for about 4.5 months. It looks like we will reach the 1,000 mark of homes sold Along the Sound by the end of the year. Overall the real estate outlook is murky Along the Sound. One question is: will rising mortgage rates force on-the-fence buyers into action? If so, will they be able to obtain financing? Another is: will Wall Street bonuses have a trickle over effect to Westchester real estate sales? If you have any thoughts/insights on the current state of the market feel free to email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

October Sales Drift Downward

We failed to maintain our previous optimistic levels of real estate sales in the Along the Sound Westchester real estate market. While there seemed to be plenty of home seekers out in September judging by the open houses, October closings usually represent contracts signed in July. Perhaps the exceedingly warm weather this summer took a toll on the home buyers.

Year-to-date, there have been 880 single family homes sales in Pelham, New Rochelle, Larchmont, Mamaroneck, Rye Neck, Harrison, Rye City, Rye Brook, and Port Chester. The median selling price was $837,500. As of November 7^th, 2010, there were 804 houses still on the market Along the Sound. The median asking price of these homes was $889,500. At this time there are also 158 homes that are under contract with a median list price of $749,500. While the number of homes sold is down about 16% from last year, selling price has rebounded significantly (up 24%). And that higher price is buying a larger home: almost 20% larger than last year. ($295/sq ft for 2009 and $304/sq ft for 2010)

What are Home Buyers Bidding On?

Looking at the numbers, sellers must be willing to reduce their home price to bring in offers. This is going to be difficult news for most sellers, but it’s time be realistic. There is almost a full year of inventory on the market. If you are serious about selling and have decided to move, what is holding you back? Could it be lack of a buyer? And what is preventing the buyer from making an offer once he has seen your house, even if it’s only on the internet? The price. Buyers need to believe there is value in your home before they will be interested in making an offer. They literally have hundreds of homes to choose from and if they perceive that you are unrealistic in your price, they will move onto the next seller who is truly ready to sell.

What is in it for the Seller

Hopefully today's seller is tomorrow's buyer and you will also reap the benefit of a "buyer's market." You may not be able to get the price for you rhouse that you could a few years ago, but you will also pay less for your new home. Hopefully that will be of some comfort.

All numbers taken from the Westchester Putnam MLS.

Home Sales-September Activity Shows Slowdown

September 2010 real estate sales Along the Sound* definitely slowed down in comparison with prior months' transactions. But before we go wringing our hands and say the market is fading, let's consider that most closings occur 3 months after the contracts are signed, so these houses represent deals struck mainly in June and later. What happens in June? Lots of stuff! Graduations, weddings, end of school activities, etc. Most young buyers of single family homes want to close BEFORE September because of the start of school. Once June rolls around, your potential pool of buyers definitely shrinks. We should not be too down on the market, especially considering the nice number of August single family home closings that occurred (82).

There were only 43 sales for the month, which is pretty consistent with Septembers of '06-'09. Here are the details:

The definite statistic that jumps out is 3,046 sq ft for $960k. Buyers definitely got more for their money in September closed transactions when compared to prior years. Sellers need to keep this in mind when listing their home for sale: it is still a buyer's market and buyers are looking for value.

* Along the Sound market area covers Pelham to Port Chester, including New Rochelle, Larchmont, Mamaroneck, Rye Neck, Harrison, Rye, and Rye Brook real estate.

Summertime and the Market is Quiet

According to Dictionary.com, doldrums are

dol·drums

   /ˈdoʊl drəmz, ˈdɒl-, ˈdɔl-/ Show Spelled[dohl-druh mz, dol-, dawl-] Show IPA

–noun ( used with a plural verb  )

1.

a state of inactivity or stagnation, as in business or art: August is a time of doldrums for many enterprises.

And that is the truth. There are few new listings Along the Sound. There has been little activity in home showings. Interest rates have remained at extremely low levels. The Dow has hovered around 10,000. Are we all waiting for this hot summer to be over? Our hope is that vacations will end, children will return to school and buyers will return to the market. Nothing has fundamentally changed in our area, but national newspapers, magazines, and internet sites have tolled the doom of the real estate market as a place to make money.

 PS While I was typing this the Dow responded to upbeat economic news and is up 250 points!

Is giving Up on Housing as an Investment Such a Bad Thing?

I don't know how many current buyers can remember a time before the '00s when people bought houses because they needed a place to live, they liked the town, its location and the commute. People expected to save money through their mortgage payments, not necessarily because of appreciation over 2 to 3 years. Maybe our expectations of the housing market need to shift with the times. Pick a place you'd like to live, with a nice commute, a place to shop and have a pleasant meal and be happy that your interest rate is only 4.5%, not 18% as it was back in the '80s.

Check out this article in The New York Times from last Sunday: In Defense of Home Ownership.

Westchester Real Estate Sales July 2010

The July Real estate activity report for the Along the Sound market* in Westchester County continues the trend of the year.  There were 126 single family homes sold in the month of July.  There are 179 homes under contract and 874 single family homes on the market as of August 11, 2010.  

 Median Price Higher

Interestingly, the median price for July is significantly higher than at for any other year since 2006.  It could be the Along the Sound buyer was feeling more confident as many sales were done within 95% of the asking price.  Interest rates remain at historical low levels.

 Westchester Real Estate Inventory

There is however, still a significant amount of inventory still on the market.  As is typical of the month of August, there have been many fewer new listings.  We should see the emergence of more activity once September arrives.

* The Along the Sound market includes the towns of Pelham, New Rochelle, Larchmont, Mamaroneck, Rye Neck, Harrison, Rye, Rye Brook, and Port Chester.

June Real Estate Sales

The Wall Street Journal is reporting that home sales across the United States declined from May to June 2010.  However, they were up almost 10% for the month when compared to 2009.  Will people focus only on the bad news?  Well in our area don't just focus on the headline.  If you read the article, it further states: "Sales fell in most parts of the country in June except in the Northeast, where they rose 7.9% from May." So there is good news in the Westchester real estate market.

July Real Estates Sales

In the month of July so far, there have been 80 closings.  This compares to 76 closings for the same period in July 2009.  Anecdotally (fewer lookers at open houses), demand for real estate definitely seems to be decreasing, but this is a common occurrence in the summer months.  Currently, there are 921 single family houses on the market Along the Sound.  The good news is that real estate inventory seems relatively stable.  Yes there are many houses on the market right now and price adjustments will have to be made, but with interest rates continuing at there lowest levels in years it remains a good time for the confident buyer.  Currently, mortgage rates are running around 4.7% for a 30-year mortgage.

Westchester Real Estate Activity

Westchester Real Estate activity in the Along the Sound market* has been brisk for the month of June 2010. There were 162 single family closings** this month. In addition there are 247 single family homes under contract. There are also 921 homes available in Pelham, New Rochelle, Larchmont, Mamaroneck, Rye Neck, Harrison, Rye, Rye Brook, and Port Chester.

After looking at the data what is most striking is the downward pressure on real estate sales prices. We are at the home sales volume levels achieved in 2007, which was overall a “good” year for Westchester real estate sales before the economic downturn of 2008, however, median prices are off $146k or almost 16% from 2007. Looking at the decline in the median price over the last 4 years, one would have to conclude that these are true losses in market value of Westchester real estate.

Future of Westchester Real Estate Sales

So what is the forecast for Westchester real estate sales for the remainder of 2010? It’s difficult to paint a rosy portrait given the latest economic report which shows overall low job creation for the month of May. This would indicate that the “recovery” has hit a stall. If the Federal Government is unwilling to pay to create jobs, it could take longer to see a gain in real economic growth. So far this year the financial industry seems to be weathering the economic stall pretty well which would be good news for the housing market in Westchester. So far in 2010 502 homes have been sold. The number of houses on the market now Along the Sound is 921 single family homes, which would represent an almost11-month supply. There will definitely be opportunities for buyers to negotiate a better purchase price in the coming months.

* The Along the Sound Westchester real estate market covers the towns of: Pelham, New Rochelle, Larchmont, Mamaroneck, Rye Neck, Harrison, Rye, Rye Brook, and Port Chester.

** Market data taken from the Westchester Multiple Listing Service as of July 3, 2010.

Westchester Real Estate Slump?

The New York Times has a front page story on the "impending real estate slump". They forecast that real estate sales are headed for a decline due to an increasingly picky group of buyers who feel they have many options in the market. These buyers are asking for and getting concessions from the sellers. Some of these concessions occur at the 11th hour at the closing. With an abundance of housing choices, these buyers feel they can ask for what they want and if they don't get it they will walk. Or, even if they do get it, they will walk because they have options. Sellers who realize that buyers may be few and far between give in to the demands because they are anxious to get their house sold and move on. So far this year we have not experienced or heard many stories about unreasonable demands by buyers; potential buyers and sellers should realize the article was written from a national perspective and what flies in Ohio may not in Westchester County's real estate market.

But does putting this type of article on the front page fuel the fire? Will potential buyers read this article and say to themselves, "Hey, I can ask for anything I want in the contract. Everyone else does."  Will sellers follow the pattern talked about in the article by giving into every concession demanded by the unreasonable buyer? Will real estate buyers back away from the market now because they believe there is too much inventory and we are headed for another market correction? As Realtors, we have some influence over the situation and the behavior of the buyers and sellers. While certainly a Realtor doesn't want a client buyer to overpay for a property, this is a business transaction and should be conducted in a respectful and civilized manner to all parties involved. Education of the consumer as real estate buyer/seller is one of the many jobs we perform.

Westchester Real Estate: Inventory of Homes

There is a lot of inventory (951 single family homes as of 6/17/10*) in the Along the Sound Westchester real estate market**. However, housing sales have been steady throughout the first five months of 2010. Better than 2009, but not quite at the level of 2007. We are halfway through June and activity is strong with 67 closings so far this month. This compares favorably to 2007, when there were 66 closings as of mid June. Additionally, another 170 contracts are "pending" in the Along the Sound market. So it seems premature to sound the death knell of the Westchester real estate market for 2010.

* All data from the Westchester Putnam MLS as of 6/17/10 morning.

** The Along the Sound Market Westchester real estate area includes Pelham, New Rochelle, Larchmont, Mamaroneck, Rye Neck, Harrison, Rye, Rye Brook, and Port Chester.

Westchester Home Sales

Good news for sellers as the market Along The Sound seems to be rebounding after a lackluster 2009. For the first quarter of 2010, there were 190 single family homes sold at a median price of $771k in a median time of 183 days on the market (DOM). The median price increased nearly 20% from last year, although DOM also increased by 19 days. This represents an increase of 100% in units sold compared with the same period in 2009. Total dollar sales value increased to $190.5mm from $95mm. All data taken from the Westchester Multiple Listing Service.

Future of Real Estate in Westchester

Some of this increased activity can be attributed to the tax credit the government has extended to first-time buyers which will end April 30^th. Also mortgage rates have been at historically low averages, contributing to buyer demand.

What does this mean for the buyer? Now is the time to call us and start the journey to find the house of your dreams.

What does this mean for the seller? Take advantage of the renewed interest in Westchester real estate and contact us today to help you prepare your home for sale and attract top dollar on your property.