Westchester Real Estate – 2008 3rd Quarter Report
Westchester real estate is down by volume and down, but still strong, by prices. The third quarter of 2008 saw a drop of 25%, as compared to last year, in the amount of deals that closed for single family homes, condos, coops, and multi family houses. The biggest loser was multi-family homes, dropping 41% in volume since the third quarter of 2007. Prices are down an average of only 6% from the same time last year. That’s the latest from an analysis of the Westchester-Putnam Multiple Listing Service.
This data seems to fly in the face of conventional wisdom. The law of supply and demand says that when volume decreases, prices go up. But the law of today’s economy seems to be trumping all other laws. At the end of the third quarter we have seen the following…
National home sales volumes have dropped 35% from the Summer of 2007
Congress votes to allow the FEDs to purchase $750 Billion of troubled assets from private banks with our money
Federal Reserve nationalizes Freddie Mac and Fannie Mae, the two largest mortgage guarantors in the country, accounting for at least one third of all US mortgages.
Federal Reserve bails out AIG, the country’s largest insurer, with $75 Billion loan
13 Bank Failures in 2008: including: WAMU & Indy Mac
Given these historical developments, Westchester County should consider itself blessed compared to communities across the county, which look like they are well past a recession. Westchester has inherent strong demographics for weathering this storm. With a well-balanced economy, strong schools, good transportation and a superior living environment, it will be ok.
The official numbers will be released by WPMLS in the middle of October 2008. The future will most likely be defined by tightening credit. If you are a buyer or a seller in this market, the watch word is to DOCUMENT. Document your ability to purchase. Document the value of your house. Get your financial house in order before you buy or sell anything. If you need help…. Ask Rey.