The Westchester real estate market has been quite active and is off to a great start this year. Year-to-date sales are within 1% of where they were at this point last year and although average and median prices are down (5% and 9%, respectively), there are some encouraging signs. According to the National Association of Realtors, 12,575 homes sell every day in the USA; about 8,300 of those purchases are financed by lenders.

In Westchester County, the number of homes under contract at the end of 1Q12 was up 28% versus last year. This bodes well for the market, especially since inventory levels remain flat. Other items of note:

  • Year to date sales increased in the following price ranges:
    • $0 - $500k (+17%)
    • $2.0 - $2.5 million (+89%)
    • $2.5 - $3.0 million (+9%)
  • Edgemont has seen a burst of activity (17 solds this year vs. 6 last year)
  • Larchmont/Mamaroneck had much higher average and median selling prices YTD (+23% and +26%, respectively)
  • Although Rye had a 50% drop in the number of sales, there were more sales at higher price points (which pushed average & median prices up 26% from 1Q11)
  • Although Scarsdale had a 38% drop in the number of sales, there were more sales at higher price points (which pushed average & median prices up more than 20% from 1Q11)

Interest rates continue to remain at or near historic lows and in my recent experience, this has been a key reason for people to either buy their first home, or buy a larger, more expensive home. With low payments and prices down, affordability is quite high. To keep things in perspective, from the market peak in 2007, single family average & median prices have declined by 25% and 30%, respectively.

Some recent quotes that I like:

“Stabilization in US housing fundamentals is creating an attractive investment opportunity. Many of the ingredients are in place for continued improvement in housing.”

- Goldman Sachs Group

“I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green….. You could come up with a pretty bullish case.”

- Jamie Dimon, CEO of JPMorgan Chase, on CNBC