January 5th, 2011 › Uncategorized › Gregg Smolev › Comments Off ›
I’m saying it now – before this year is out, there is going to be a shortage of rental homes in the Westchester area. All the ingredients are starting to come together. Employment is starting to pick up – has anyone noticed more traffic during rush hour recently? There is tremendous pent-up demand – just think of all the twenty-somethings living with mom and dad the past few years because they couldn’t get a job. As soon as that first paycheck arrives from the new job – you better believe they will be making a bee-line for the door. That’s the demand side of the equation – demand for rentals is getting stronger by the day.
Now for the supply side. The Great Recession created supply due to some renters losing their job and doubling up in some fashion – moving in with family, friends, etc. However, that excess supply has been sucked up, and vacancy rates are low. People have not been buying homes, they have been renting instead. Usually, when supply gets used up, the market creates more supply – but that is not happening. Why? The vast majority of builders can’t get financing, even for rental properties!
So something has to give. Remember – when this country built too many for-sale homes, the something that gave was price – prices crashed. Now, as the shortage of rental properties plays out over the next year or two, prices will give way again – to the upside.
So, maybe you heard it here first, maybe not – but don’t be surprised if over the next two years rental prices start climbing significantly.
December 6th, 2010 › Uncategorized › Gregg Smolev › Comments Off ›
As we say goodbye to 2010 and usher in 2011, it’s certainly worthwhile to reflect on the local housing market. In the New York area, we were undergoing a painful but manageable price correction through the summer of 2008, when the Lehman Brothers bankruptcy hit and all hell broke loose. From that point on, we experienced the worst housing market any of us have ever seen, and hopefully ever will. Prices and volume absolutely crashed between September 2008 and April 2009.
At that point, it appears that things started to very slowly turn. Bargain hunters started showing up in earnest. Volume started to pick up ever so slightly, and prices followed a few months later. Just as in the general economy, the market here began what was initially an almost imperceptible recovery, but a recovery nonetheless.
Things are still difficult, but the fire sales are over and the distressed sellers seem to be making up less and less of the overall market. There is almost no new construction and inventory is not much higher than it was when prices were soaring a few years ago.
The rental market in particular seems to be very strong, due to the fact that many would be buyers are either afraid or unable to purchase. Residential vacancy rates are on the decline, and rental prices are on the rise.
The bottom line – absent some external shock, the market should continue to improve, albeit very gradually, in 2011. Slow but steady seems to be the immediate path ahead.
November 8th, 2010 › Uncategorized › Gregg Smolev › Comments Off ›
Recent statistical figures for both the local and national residential rental markets show very clearly that rentals are hot. Vacancy rates are declining much faster than expected, and rents are actually starting to go up. The question is – at what point will it make more sense to buy than to rent?
During the housing boom, prices got so out of control that the relationship between buying and renting became completely disjointed. At the peak, renting would have been a far better option – unfortunately for those who bought at that time.
Today, however, with prices way down and interest rates at record lows, buying makes much more sense for those who plan on staying put for a while and have reasonable job security and can easily afford the monthly payments. The problem from the perspective of sellers, of course, is that there is still a lot of fear about the direction of the housing market and that is preventing many would-be buyers from taking the plunge.
When this pervasive attitude will change is anybody’s guess. In the meantime, the cost of renting is escalating as landlords pull back on incentives, while the cost of owning is staying about the same. Sooner or later, potential purchasers will catch on that they are better off purchasing, and that’s when the for-sale market will enter strong recovery mode. My prediction – Fall 2011.
October 13th, 2010 › Uncategorized › Gregg Smolev › Comments Off ›
Manhattan and Westchester are two of the priciest areas in the country and also have high taxes. So why is residential real estate here doing better than much of the rest of the country? Why is there no foreclosure epidemic here?
There are a few reasons. However, the most important reason is that New York State has the lowest “underwater” rate in the country, meaning we have the lowest percentage of homeowners who owe more on their mortgages than their home is worth. Why is this?
Well, this is just a hypothesis - but it may be because local governments put up so many roadblocks to new construction, so during the boom there was not a glut of inventory. Prices certainly rose higher than they should have, but because there was not a tremendous amount of new construction there were very few investors speculating with little or money no down. This in turn prevented the conditions of the speculative bubble that formed in the south and the west. Most purchasers had significant equity in their home.
So when the market corrected, the lack of new construction and speculators actually made it easier for the market to bottom and to start bouncing back. Having the best rate in the country in terms of positive house equity should help the New York area to recover faster.
September 13th, 2010 › Uncategorized › Gregg Smolev › Comments Off ›
Things are heating up at Ichabod’s Landing! We just rented another home…there is another home (not a waterfront home) currently available for rent for just $4550 per month. If you’re interested in renting this home, or being on our waiting list for waterfront rentals and sales, make sure you contact Douglas Smolev at (914) 772-7672 or e-mail him at douglas.smolev@themarcongroup.net. Don’t miss out!
July 27th, 2010 › Uncategorized › Gregg Smolev › Comments Off ›
We having been saying it for a year now – the housing market in Westchester has been improving after dropping for the prior two years. The Westchester-Putnam Board of Realtors published 2nd Quarter 2010 statistics last week, and it showed overall higher volume and higher prices for homes in Westchester.
Unemployment has been declining in our market area, and there is almost no new construction – that’s a recipe for recovery. We will keep an eye on future reports to see if the trend continues.
July 5th, 2010 › Uncategorized › Gregg Smolev › Comments Off ›
No vacancies right now at Ichabod’s Landing, but we can show a home if you are interested in purchasing or renting later this year. Please call Douglas Smolev at (914) 772-7672 to make an appointment.
June 6th, 2010 › Uncategorized › Gregg Smolev › Comments Off ›
Our waterfront homes are currently all rented, but one or two will become available later this year. However, starting July 1, you will be able to preview the waterfront townhouses.
There is also a townhome currently available that does not have a direct water view, but offers excellent value and will give you the opportunity to live right near the water and take advantage of the great location in southern Westchester, walking distance to the train station.
Call Douglas Smolev at (914) 772-7672 for more details.
May 18th, 2010 › Uncategorized › Gregg Smolev › no comments ›
Our last two waterfront rentals were rented this past weekend. However, all six of our rentals will eventually be for sale, including one or two later this year. If you are interested in owning a townhouse with absolutely the most spectacular Hudson riverfront views, please contact Douglas Smolev at (914) 772-7672 to put your name on our waiting list, and as soon as we have something available we will contact you for a personalized showing. You can also send an e-mail to douglas.smolev@themarcongroup.net.
April 29th, 2010 › Uncategorized › Gregg Smolev › no comments ›
Spring fever – after a winter like this, we all have it! Seems to us the best way to cure it (and summer fever too) is to live in a townhouse on the Hudson, with incredible Hudson River views. Watching the sailboats catching a cool breeze right from your own roof garden overlooking the river, enjoying cocktails while the sun sets over the Palisades…what could possibly be a better way to spend a spring or summer afternoon?
These Ichabod’s Landing Westchester townhomes with Hudson views are quite simply the most unique homes for sale or rent in lower Westchester. This is the year to change your lifestyle and get the townhouse with water views you’ve always wanted – call Douglas Smolev at (914) 772-7672 to make an appointment to see these spectacular townhouses near Tarrytown.