Westchester Market Report 1st Qtr 2010
Houses
Closings were up 77% to 756 closings for single family homes in Westchester County in the first quarter of 2010. Prices were also up 13% respectively for the same period in the county, making the median price for a new house $599,500. These closings reflect activity that occurred the Fall of 2009. Realtors remain optimistic that a “recovery” is taking place. Buyers and sellers should be guardedly optimistic given these numbers are compared to the dismal Spring of 2009. Volume is comparable to 2008, when the recession took hold.
Investments
Multi-families experienced a transaction increase coupled with price depreciation this quarter. The median sold price for 2-4 family investment property was $348,000, down 15% from last year. Astonishingly a multi-family is cheaper than a condominium today in Westchester. The number of closings however was up 34% to 83 units sold, from the previous year, evidencing that investors are taking advantage of plummeting prices.
Condos
The median condo sold for $365,750 this quarter, up 4% from the same quarter last year. Closings rebounded significantly, going up 37% this quarter to 180 transactions. The increase is tempered by the assumption that owners are still holding inventory. But the trend may continue, prompting owners to release more inventory for buyers.
Cooperatives
The median coop sold for $170,000, down 5% from last year. Closings were up 27% from the same quarter last year. The increase in transactions reverses the trend of 2009, which saw the lowest seen in more than 10 years, reflecting frustrated sellers and tentative buyers. Cheaper than condos, coops require board approval, so new buyers looking for deals had to have their down payments in order, and financials straight to purchase. 2010 continues to look like cheaper prices.
Future Outlook
Overall Westchester transactions increased by 55%. Total dollar volume increased by 38%. The federal tax credit ended April 30th and the FEDs have yet to extend the program. If the party is over, buyers will have to create their own recovery and search out good deals. As always the market outlook depends greatly on the job market. 2009 saw low interest rates but experts predict higher rates this year. Wall Street seems to have rebounded but foreclosures increase which will put downward pressure on prices.
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Rey Hollingsworth Falu
Licensed Associate Real Estate Broker
Houlihan Lawrence - Bronxville
Direct 917-855-0277
rhollingsworth@houlihanlawrence.com
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