Fourth Quarter 2019: Real Estate Market Report – Dutchess County, New York


The Dutchess county housing market surged again in the fourth quarter of 2019, closing a robust 2019 with a flourish. Sales activity was way up, with single-family home sales up almost 20% from last year’s fourth quarter, which made up for a lackluster start to 2019 – as you can see, even with the fourth-quarter surge, sales for the full year were basically flat. Quarterly sales were also up almost 13% for condos, finishing the year up almost 7%. Pricing for the quarter was a bit more mixed: single-family homes were down about 3% on average but up almost 4% at the median, while condos were up about 5% on both the average and the median. But for the year, pricing was up meaningfully, with single-family homes up almost 3% on average and over 4% at the median, and condos up over 4% on average and almost 3% at the median. Going forward, we believe that Dutchess is entering 2020 in good shape, and the strong economic fundamentals will drive a relatively robust spring market.

Posted on January 14, 2020 at 10:11 am
Adam DiFrancesco | Category: Dutchess County, In the News, New York, Quarter Market Report

Third Quarter 2019: Real Estate Market Report – Dutchess County, New York


The Dutchess housing market surged in the third quarter of 2019, with sales and prices up sharply. Single-family home sales were up almost 4% compared to last year’s third quarter, the largest year-on-year sales increase in over two years. Indeed, the 671 closings marked the largest quarterly total since the third quarter of 2016. Similarly, single-family prices were up sharply, rising over 5% on average and over 7% at the median, with the rolling year average sales price now at its highest level since the fourth quarter of 2008 – at the tail end of the last seller’s market. In contrast, sales in the condo market were down slightly, but only because of a lack of inventory. Demand is still high, as evidenced in the rolling year pricing, with the average price up almost 5% and the median price rising almost 8%. Overall, we believe that the fundamentals of the market remain strong – demand is high, inventory is reasonably available, interest rates are near historic lows, and the economy is solid. Accordingly, we expect that Dutchess will continue to thrive through the end of the year and into 2020.

Posted on October 31, 2019 at 9:33 am
Adam DiFrancesco | Category: Dutchess County, In the News, New York, Quarter Market Report

Second Quarter 2019: Real Estate Market Report – Dutchess County, New York


The Dutchess housing market was a “Tale of Two Markets” in the second quarter of 2019, with single-family home sales softening a bit even while condo sales surged. After a sizzling start to the year, the single-family market cooled, with sales and prices both falling. But the lower-priced condo market was up, with sales rising over 6% and prices up about 3% on average and 4% at the median. Essentially, both markets should be doing well with these kinds of strong housing fundamentals – rates are low, inventory is low, prices are relatively low, and the economy is strong, But only the condo market is behaving like a proper seller’s market, because the 2018 Tax Reform cap on state and local taxes has suppressed sales growth and price appreciation in higher-priced markets. Essentially, the SALT cap affects taxpayers who are more likely to itemize their taxes, which includes the higher-income home buyers for single-family homes. But the SALT cap has less of an impact in the lower priced-condo market, since buyers at that price point are more likely to take the standard deduction. All that said, we believe that at some point the SALT cap hit will get priced into the Dutchess market, and that the economic fundamentals will eventually drive sales growth and price appreciation in both single-family and condo markets.

Posted on July 15, 2019 at 11:39 am
Adam DiFrancesco | Category: Dutchess County, In the News, New York, Quarter Market Report

Homes in Westchester and the Hudson Valley are STILL Cheaper Than They Have Been in a Generation

Right now is a really great time to be buying a home in Westchester or the Hudson Valley.

Man, do I hate saying that. As I’ve explained before, I hate the phrase “great time to buy” for a couple of reasons.

First, people have different needs, and a market that’s great for one person might be terrible for another person.

Second, while markets tend to move together, we do see micro-markets (i.e., towns and villages) that defy larger trends. So while it might be a great time to buy in Village A, it might be not so great in Town B.

Third, and most importantly, though, “it’s a great time to buy!” just seems like a hack thing to say, the kind of thing that TERRIBLE real estate agents have said for generations to get unsuspecting and gullible people to buy an overpriced home. And I think that most people get suspicious when real estate agents talk like that.

So I understand if you’re skeptical. And that’s why I don’t want to just TELL you it’s a great time to buy, I want to SHOW you why it’s a great time to buy.

Specifically, I want to make this specific point: the monthly payment you need to buy an inflation-adjusted average priced home in Westchester and the Hudson Valley is as low as its been in a generation.

Think about what I’m saying for a second. I’m NOT saying that homes are cheaper than they’ve ever been. That’s not true. Depending on the year, homes have appreciated, and if you go back more than 15 years, they’ve appreciated pretty dramatically. I’m just saying that the MONTHLY PAYMENT you need to make to buy the AVERAGE PRICED HOME is lower right now than it’s been in a generation — if you control for the effects of inflation.

If you look at the graph below for Westchester County, you’ll see what I mean.

On that graph, as we’ve done before, we’ve plotted the monthly payment that a purchaser in the county would have to make to purchase the average-priced home at various points over the years. After all, affordability is not just a matter of the sales price – it’s a matter of the monthly payment you’re going to have to make, which is partly a function of the prevailing interest rate. And then to measure the change in the monthly payment over time, we factored in the effects of inflation.

So we took the following data points:

•The average price of a single family home up to the end of 2017 – from the local MLS data.
•The average interest rate for a 30-year fixed-rate mortgage for every calendar year up to 2017 – from Freddie Mac.
•The prevailing inflation rate for every calendar year up to 2017– from the US Department of Labor.

You can see the results on the graph. The monthly payment you have to make to purchase the average-priced home in Westchester is just about as low as it’s been in years. We saw the slightest uptick from 2012-2014, partially because of a slight increase in pricing and a slow inflating of interest rates. But the payment came down again over the past two years, with rates falling and prices stalling.

Generally, though, we’re talking about a monthly payment that is as low as anytime in the past 35 years – and as low as it was in the mid-1990s, during a crippling buyer’s market.

So why are monthly payments lower than they’ve been in a generation? A couple of reasons:

1) Prices. Part of it is that we have not seen prices go up in any measurable way in almost 10 years. Home prices peaked in 2006-08, lost about 25-30% of value from 2008-2010, and have bounced around a little since then. But they’re still around 2004 levels — without controlling for inflation.

2) Inflation. Ah, yes, inflation — the value of money goes down a little bit each year as inflation takes a bite. Now, inflation rates have been pretty low over the past 15 years from historical standards, but that little bit each year does add up.

3) Rates. But the biggest reason we’re seeing monthly payments lower than they’ve been in a generation is that rates are still at historic lows. After all, about ten years ago, the average interest rate was about 6%. For the past few years, it’s been below 4%. That’s a huge difference in your monthly payment.

And the same is true throughout the Hudson Valley. I showed you Westchester first because we have good data on prices for the county going back all the way to 1981. In other counties, our data doesn’t go back as far, but if we look at each of those counties you can see that it’s pretty much the same story for the time period we have.

Orange County. Here’s Orange County, where we have data going back to 1994:

You can see that the monthly payment to buy an average-priced home in Orange County is lower right now than it’s been in over 20 years.

Rockland County. In Rockland, we have data going back to 2002, over 14 years of data.

Again, you can see that even with a slight rise in the past few years, the monthly payment you have to make to buy the average-priced home in Rockland is lower right now than it’s been since at least 2002, and probably for quite a bit of time before that.

Putnam County. Similarly, we have data going back to 2002 in Putnam, and the story is the same:

Dutchess County. Again, same story in Dutchess County for that same period:

And although we don’t have data for Orange, Rockland, Putnam, or Dutchess going back as far as Westchester, the fact that the curve over the recent decade or so is very consistent with Westchester’s results suggests that, like in Westchester, the monthly payment you need to make throughout the Hudson Valley is lower right now than it’s been since the Carter administration.

Condos and Coops. All that’s for single-family homes. What about condos and coops? Well, we don’t have data going back as far, but in each county, condos (and coops in Westchester) show the same trend — the monthly payment to buy an average priced condo or coop in the region is lower right now than it’s been at any time since the 2005 era. Here are the graphs:

You can see that except for Westchester and Putnam condos, which have seen some pricing changes in the past two years, the monthly payments are lower than any time since 2005. And even in Westchester and Putnam, they’re lower now than at any time in the last decade, just a little higher than the last two years.

We wrote this up last year, and predicted that 2016 would be the last time we’d be able to say it. And we were mostly correct, since prices throughout the region went up a bit, and rates started to creep up. So it’s not quite right to say that 2018 is the best year to buy a home in a generation, since 2917 and 2916might have been better. But you have to otice the trend — the real monthly payment you have to make to buy the average-priced home in our region is lower than it’s been in years.


Again, I HATE it when real estate professionals say that “this is a great time to buy,” because at many times in our history that has been bad advice.

But if you measure a “great time to buy” by looking at the monthly payment you’ll have to make to buy a home, then we’re talking about as good a time to buy as any in the past decades. Prices have been flat for almost 10 years, and they’re down significantly if you factor in the effects of inflation. And interest rates are still as low as we’ve ever seen them. Unless we see some major shock to the economy, I think we’re looking at a near-decade of reasonable price appreciation coupled with increasing interest rates – both of which are going to drive that monthly payment up over the next few years.

So I’m not going to tell you what to do. That’s not my job. But if you’ve been thinking about buying a home, I think these graphs speak for themselves.

To learn more about Better Homes and Gardens Real Estate Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.

Joe Rand is the Chief Creative Officer of Better Homes and Gardens Real Estate | Rand Realty, and compiles and writes the Rand Quarterly Market Report.

Posted on January 8, 2018 at 12:06 pm
Vincent Abbatecola | Category: Analysis, Condominium Sales, Dutchess County, Housing Affordability, Hudson Valley, New York, Orange County, Putnam County, Rand Country Blog, Rockland County, Westchester County | Tagged , , , , , , , ,