April 2016 Westchester Real Estate Market Conditions

We are currently in a transition time with some saying that the market is overpriced and ready for a downturn, while others maintain that the sky is still the limit. This is a market cycle we've seen many times and no one without a crystal ball can accurately predict when the market has peaked.

Here's how I look at the local market and try to figure out where it's going:

1. I look at recent sales history, the past 3 to 6 months, and extrapolate information from there to see where the market is going.
2. I look at comparable properties (comps), on a targeted neighborhood, city and county level.

There's so much information out there on 24-hour news stations and websites that people accept as gospel without really considering the level of credibility of the reporter or challenging the facts certain statements are based on.

We are seeing some homeowners that want to price a home higher than what our market analysis has called for, based on a gut feeling, what a neighbor has said, or something they've read online. Very often the market rejects over-priced properties, and smart sellers adjust their pricing in a timely manner. Of course, some sellers dig in their heels and demand that buyers adjust to a price they've locked into their head. It's frustrating when they don't want to face up to the realities of the marketplace.

The good news is that mortgage rates are still relatively attractive and I don't see any major changes in rates in the near future. The Federal Government is reluctant to quickly raise interest rates and affect an already shaky economy. We are also seeing well-priced properties getting lots of activity and multiple offers within a few weeks. On the flip side of the coin, leading up to the last serious downturn that began in 2007, at the peak of the market, 26% of single family houses in Westchester sold for over $1 million. We are at about 22% now. It's hard to imagine that one in almost every 4 houses is worth over $1 million, when the whole of Westchester county is factored in.
This situation just doesn't seem sustainable considering the incomes and financial background that most people in Westchester have today. Add in our high taxes - I've seen one property listed at $899,000 with taxes over $40,000 a year - and you see what buyers are up against.

No market can sustain only going up, and I don't think this market is sustainable for too much longer before there will be adjustments. You only have to drive around our towns and see the many vacant storefronts, and remember that many people are still out of work to understand that we are not in a vibrant, booming economy.

So, my advice is this: if you are thinking of selling, now is better than later in terms of maximizing your return. The prime selling season is NOW: April, May, and June. Since real estate is local, varying from town to town and neighborhood to neighborhood, we really need to dig in and examine the details of individual properties.

If we can help you with any of your real estate needs, don't hesitate to call us at 914-761-7878 or email me at peggyshea@kw.com