Residential Market Update for August 2016

As people are returning from vacations and become preoccupied with getting back to work and the back-to-school rush, we are enthusiastically shifting into the fall real estate market.

The situation in the local residential real estate market varies by community. For example, there is a significant amount of inventory in Scarsdale, more than we would normally expect, and Chappaqua has a huge amount of inventory. In Rye and Larchmont, inventory is tight and homes are being snapped up.

Closings are up, compared to last year and contracts written are up county-wide. The market varies according to pricing: in the $2 million and up range, the market is soft and properties are taking longer to sell. The “sweet spot” in the market is in the more affordable $600,000 and below range.

I’m glad to say that we are out-performing the general real estate market. Specifically, the county Multiple Listing Service reports listings sold are up 9% over the last 12 months, while our Keller Williams White Plains office is up 26%. Our office is also up 26% for contracts written, compared to the MLS which is only up 12%.

While mortgage interest rates remain dirt cheap, in the 3% range, there’s a lot of uncertainty over the direction of the economy due to the upcoming Presidential election. When people don’t know what’s going to happen they understandably get nervous about the future. If businesses are going to be subjected to increased regulation and taxes, business owners aren’t thinking about expansion. That sentiment trickles down to the local economy, and real estate is one piece of that economy and is not immune to external pressures.