As you can see below, the Westchester real estate market is all over the place. I would say that Westchester real estate is generally softening a bit, though it definitely varies by area and price point. I've highlighted some contrasts:
The very low interest rate environment has definitely spurred sales a bit, though I think that will be short-lived. From buyers, I sense that there is an issue with affordability, i.e., people don't seem to be making more money even though real estate prices have been appreciating. On the seller side, I sense a general feeling of confidence that is, in my opinion, misguided. Just because interest rates are low doesn't mean that prices should be higher! The smart sellers are taking advantage of this market by pricing their properties correctly; they are getting a lot of interest. All of the others are just sitting on the market or are seeing bids well below asking.
In terms of where sales are occurring along the price spectrum, there are some interesting things happening:
For those of you who want more specific data, please contact me! I keep a close eye on the market and am actively closing deals in a dozen different municipalities.
I am grateful for the support and referrals that you - dear reader - have provided. My business continues to grow and I thank you!!! I have been able to help a record number of buyers and sellers over the past year. In fact, for 2018, I was recently recognized as one of the top 400 individual agents in the United States (across all brands and regions). I also received the FIVE STAR customer service award for the 10th consecutive year (along with 52 of my colleagues out of a pool of nearly 9,000!).
My business is based upon referrals, so please let me take care of the real estate needs of your friends/family/colleagues!
Real estate sales in 2019 are off to a busy start! There are definitely signs of a shifting market, especially at higher price points. Overall, though, the market feels healthy and there is a lot of action. We got a boost from declining mortgage rates; rates for a 30 year mortgage approached 5% at the end of 2018 and are now in the low 4's, which increases affordability and causes buyers on the fence to buy. Like in any market, pricing and condition are key. The most updated homes in the best locations are still selling and attracting lots of interest. I have been in quite a few bidding wars and have seen a surprising number of all cash buyers. There are still a lot of homes sitting on the market, though, and that is usually related to price.
It seems to me like the new tax plan is having a meaningful (negative) impact on the real estate market, especially in higher price ranges. This is not a surprise, though the magnitude of the shift is tremendous (!). For example:
I continue to have big goals for 2019 and my business is referral-based. If you are reading this and have any needs related to real estate, please get in touch with me. I want to help you (and your colleagues, family and friends)!
Westchester County real estate had a very interesting (and busy) year! Overall, there were almost 5,900 single family sales in 2018. In many cases, 2018 marked the year that the real estate market started to shift from a seller’s market to a buyer’s market.
Nationwide, much of the focus the past few years has been on a shortage of housing supply (inventory) but began to build in June (see graph). Westchester saw inventory rise starting in April but for the year, inventory was down 2% versus 2017.
In Westchester, inventory declined in every price range except in the $500,000 - $2,000,000 category. There are many explanations but I believe one of the main reasons is the federal tax plan, which limits the tax deductibility of mortgages to $750,000. We live in a very expensive part of the country and migration patterns show that population continues to favor states to the South and West. However, New York is still a magnet for high-paying jobs; United Van Lines recently conducted a study which showed that 60% of inbound moves to NYS were for job-related reasons. Fifty percent of those moves were for people aged 44 and younger with 67% making $100,000 or more.
In 2018, the number of sales in Westchester County dropped by 4.7%. The biggest decline in sales happened in the $4 million to $10 million range. I the $500,000 - $1,000,000 range, the number of sales was up almost 2% (to the highest point in at least 3 years). Five homes sold for $10 million or more, as compared to 2 sales in the past 3 years. Almost every area saw their maximum selling price rise in 2018 vs. 2017. Westchester’s highest property sale was the $33 million Rockefeller estate.
In terms of pricing, average and median prices rose slightly, 1% and 3% respectively. Among the markets that I typically cover, Harrison and White Plains were two bright spots: both saw a drop in inventory & an increase in the number of sales. Harrison average and median selling prices rose by around 10%; White Plains was closer to an 8% increase.
It appears that the hardest hit segment of the market is in the $1 - $2 million price range. The number of active listings rose by 8% year-over-year while the number of sales dropped more than 5%. Scarsdale is an example of this; median list and selling prices dropped by 10% (and the number of sales were down 17%).
Here is an interesting chart of how far we are from the bottom and top of the market:
With the recent tax changes & higher interest rates, affordability is something that increasingly concerns many buyers. At this time, I believe that we are in the middle of a re-pricing as sellers adjust to this new reality. It became more pronounced as 2018 wore on and in the second half of the year, the homes that sold were the ones where the sellers recognized that the market was shifting against them and priced their homes aggressively to appeal to buyers.
It will be interesting to see how the market develops as we head into 2019. I expect prices to stabilize in most areas and have already seen a pickup in activity.
2018 was an excellent year: I helped more than 40 families directly buy & sell property and hope that your referrals will continue to fuel my business in 2019!
Almost every buyer that I am working with has asked me if prices are high, too high or about to fall.
Click on this link for a good explanation of where the market is and where we've come from.
The real estate market continues to be very busy! Below is a snapshot of market activity for Westchester through October (single family homes).
Number of Sales
The Wall Street Journal just published this article on commonly mispronounced real estate words. Definitely a good read!