The Westchester Housing Market is on the Rebound
The Westchester-Putnam Multiple Listing Service just released its 4th quarter 2009 statistics, and they seem to indicate a rebound in the Westchester housing market. While for the full year sales were down 12% and prices were down 11% versus 2008, the fourth quarter told a different story. Single family home sales were up 36%, and condominium sales were up 44% versus 4th quarter 2008, while median prices were down 1.8% and 2.1% respectively.
In fact, the volume of single family sales was just about equal with 4th quarter 2007. These statistics indicate that there are plenty of buyers for well-priced homes. But price is key. Sellers need to be realistic and recognize that prices are at early 2004 levels. They are down about 20% from the 2007 highs. Many people, however, are recognizing that rarely are the stars so aligned to purchase a home – low prices and low interest rates are combining for record affordability. If volume continues to pick up, prices will follow at some point.
Westchester does not have a glut of housing – in fact, for sale inventory is not much higher than it was during some of the boom years. In fact, it is very difficult to get new developments approved in Westchester, so that in and of itself serves as a brake on overbuilding. It simply became overpriced, with buyers bidding properties up to unsustainable levels. Once the economy started to implode, particularly Wall Street, Westchester housing prices inevitably followed.
With the beginnings of a modest economic recovery, and Wall Streeters taking home bonuses again (even with the general uproar about it), this may signal the turning of the corner. It will be interesting to see as the year unfolds. In all likelihood, prices will not increase much this year, if at all, but if the volume of sales continues to pick up, then certainly by next year prices will start to move up. Needless to say, if the economy were to backtrack again, all bets are off, but if things continue to improve, albeit slowly, then the Westchester housing market should continue to improve slowly as well.
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