Facebook
Twitter
Pinterest
Copy Link
Second Quarter 2017 Real Estate Market Report – Westchester County, New York
Prices in the Westchester housing market surged forward in the second quarter of 2017, even while a lack of inventory stifled potential sales growth.
Sales. Home sales were basically flat through the second quarter, falling just about 1% from the second quarter of last year. This marked the first quarter in almost three years where sales fell from the prior year, reflecting the lack of inventory available in the market. Still, though, sales are at levels we have not seen since the last seller’s market in 2005, and up almost 90% from the bottom of the market at the end of 2009.
Prices. Low levels of inventory also had an impact on prices, which were up significantly over last year. Home prices rose across the board: up over 7% on average, almost 4% at the median, and 3% in the price-per-square foot. Over the longer-term, we’re starting to see some meaningful price appreciation, with average prices up almost 3% for the rolling year.
Negotiability. The negotiability indicators continue to signal the emergence of the seller’s market. Inventory declined again, falling almost 12% and now at the lowest level of inventory we have had in Westchester in over 12 years, since the height of the last seller’s market. Similarly, the listing retention rate was up a full percentage point, exactly what we would expect when sellers start to gain negotiating leverage.
Condos and Coops. The condo and coop market was mixed. Sales of coops were up over 12%, but condo sales were down over 6%, the clear result of constricted inventory levels. But that shortage of available condos and coops is having its expected impact on pricing, which was up across the board for both property types.
Going forward, we expect that Westchester is going to continue to see meaningful price appreciation through a strong summer market. With inventory still tightening, pricing at 2004-05 levels, and interest rates still near historic lows, we expect that buyer demand will stay strong for the rest of the year.
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.
Second Quarter 2017 Real Estate Market Report: Westchester & Hudson Valley – Market Overview
The housing market in Westchester and the Hudson Valley continued to show signs of meaningful price appreciation in the second quarter of 2017, with prices up in every county in the region. With inventory rates dropping, and demand strong, we expect this trend to continue through a robust Summer market and through the rest of 2017.
Inventory throughout the region continues to drop. Regional inventory was down almost 18%, and is now down to 7.1 months — right at the level that the industry considers a “balanced” market. But many of the individual counties in the region are now down around six months, moving into “seller’s market” territory.
The lack of inventory continues to stifle sales growth. Regional sales were down just a tick compared to the second quarter of last year, just barely breaking a 10-quarter streak of year-on-year sales growth. We noted in our last report that the pace of growth was slowing. Now, it has stalled, at least until we get more “fuel for the fire.” All that said, buyer demand is as strong as we’ve seen in over 10 years, with regional sales up 5% for the year and reaching the highest 12-month sales total since the height of the last seller’s market in 2005.
These inventory levels are starting to drive meaningful price appreciation. The regional average sales price was up over 6% for the quarter, following a similar 7% increase in the first quarter. After several years of slow declines, prices are now up over 1% for the rolling year. That may not seem like much, but it’s a sign of things to come. Indeed, average prices were up in every county in the region, rising over 7% in Westchester, over 6% in Putnam, over 1% in Rockland, 9% in Orange, and almost 5% in Dutchess. We should not be surprised — sales have been going up year after year, and it was only a matter of time before this type of demand drove some meaningful price appreciation.
Going forward, we expect that prices will continue to appreciate through the rest of the year. Demand is strong, bolstered by near-historically-low interest rates, prices that are still near 2003-04 levels (without controlling for inflation), a generally strong economy, and sharply declining inventory. We will need fresh new listings to drive more sales growth, but we expect that we will continue to see price appreciation through a robust Summer market and throughout 2017.
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.
