While we all hear and read news reports about the real estate rebound in other parts of the country (Miami, Phoenix, etc.), the media is fairly quiet about developments locally. I am happy to report that the market is active and there are lots of qualified buyers out looking. I just wish there were decent properties to show them!
In Westchester County, inventory is at the lowest point in 2 years and the number of single family sales was the highest since 2007. In 2012, the number of single family home sales increased by 16% over 2011. There were quite a few homes that attracted multiple bids; I expect even more of that to happen this year – we have less inventory and more people looking to buy.
In terms of prices, Westchester pricing is flat-to-down in most areas. In fact, the median price for a single family home dropped 2% in 2012. Perhaps things are changing, though, since the 4th quarter showed a 4% increase in median selling prices.
There are definitely more sales occurring at higher price points. Although the percentage of $1+ million sales was down from 2011, the absolute number of $1+ million sales was higher, i.e., there were just over 900 sales posted over $1 million vs. 823 in 2011. In fact, the highest recorded single family sale occurred in December 2012 ($21,500,000) for the former Harriman estate in Bedford Corners. Another interesting factoid: volume increased 47% in the $2.5 - $3.0 million price range (75 sales in 2012 vs. 51 sales in 2011). If buyers with such means are actively committing their funds to real estate, perhaps it is time for on-the-fence buyers to start bidding.
Where are prices going? Up! Pulsenomics recently surveyed 105 prominent economists, housing analysts and investment strategies; their collective expectation is for homes prices nationally to average a 3.1% annual increase over the next 5 years. For those with a long enough time horizon, this is a great time to buy and if you already own real estate….. buy more! It appears that volume and pricing are starting to rebound in many parts of the country and Westchester tends to lag the USA.
I am still finding the rental market to be strong. My investor clients have been keeping me busy scouting for opportunities throughout southern Westchester. I have come across quite a few good condos (to buy for cash flow) and several multi-family homes, as well. There are still plenty of people who would prefer to rent than buy; for those who can handle the stresses of being a landlord, the market will likely reward you over the next few years.
If any readers are considering selling (or perhaps you know someone who is about to sell), please contact me at 917-549-5296 or jeremy@jeremyzucker.com. It is possible that I have a buyer for your property!
