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.

New York Times Rent vs Buy Calculator

Here is a useful link to find out whether you are better off buying or renting a home in your personal circumstance. Of course there are many reasons why people like to buy a house outright. After all, home ownership is the "American Dream." And maybe in your home search here in Westchester you have found your ideal house. But sometimes circumstances conspire against you and the time doesn't seem right to plunge into homeownership. Bottom line though, your decision should make financial sense because you cannot build equity in a rental, you are subject to the homeowner's rules, and you cannot take a tax deduction on mortgage interest or taxes. This calculator will tell you, based on market appreciation, tax rate, and mortgage rate, whether the time is right to buy or you should wait and rent a house.  The calculator will also tell you the anticipated savings for each year.

Current mortgage rates for a conforming loan (less than $729,750) are around 4.7%. Taxes can be estimated at about 1.75% of the home price in Westchester County unless you are purchasing an older home, when you may find the taxes to be slightly less. Appreciation in Westchester County in the Along the Sound housing market is probably flat to +1% at this time.

Advice for the Real Estate Buyer

The Wall Street Journal has some tips for the first-time home buyer. Yes, even though the newspapers are touting the real estate crash of Fall 2010, there are still people buying houses in Westchester, NY. If you are one of those buyers, take time to read the article as it is intended to help you avoid some common mistakes frequently made by first-time home buyers. It is easy to get caught up in the thrill of "the search" and imagining your future life in your new house, especially if it's decorated just right. But today's news articles make it all too clear that buying a home is a practical business decision and should be approached methodically to obtain the best results: buying a home in a neighborhood you like, at a price you can afford, that reflects current market conditions. If you are searching for a home in Rye, Larchmont, New Rochelle, Harrison or any of the other Along the Sound neighborhoods we do business in, please give us a call so we can show you the ins and outs of real estate and buying a house in Westchester.

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.

The inventory of unsold homes is building around the country according to The Wall Street Journal article by Nick Timiraos in yesterday's paper. The real estate market in New York was not included in this article.

How is the Westchester real estate market stacking up so far this month? As of July 16th, we have 922 single family homes for sale in the Along the Sound market from Pelham to Port Chester. (There are 228 homes under contract.)This number has barely moved from the end of June. This is good news as it seems that inventory is not building. As interest rates continue to remain at historical lows, buyers should be motivated to continue their search for an affordable Westchester home.

Where is all the inventory in the Westchester real estate market along the Sound?

Pelham 77 homes

New Rochelle 253

Mamaroneck 105

Rye Neck 42

Rye 87

Harrison 183

Rye Brook 78

Port Chester 97

Total: 922 single family homes

In general, the number of homes on the market is proportional to the size of the town/city. This is definitely a good time for the confident buyer to make a move in the market. Most sellers have begun to be realistic. See the related Wall Street Journal article on why you should lower your listing price if your house is not selling. This is advice a seller never likes to hear from their agent, but it is the most basic tactic to getting your house sold.