REAL ESTATE MARKET REPORT

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3RD QUARTER 2019

1

What You Need to Know About the Local Real Estate Market - Q3 2019The sun was shining on the Westchester housing market this summer! Despite ancillary concerns about the economy, trade wars, tax law changes, and other related factors, the number of closed sales of single-family homes and prices both rose in the third quarter of the year.

Unemployment fi gures just released are at 3.5%, the lowest they’ve been since 1969. Consumer confi dence remains relatively high. Interest rates are still extraordinarily low. Supply and demand for homes plays a critical role in which homes sell and for how much.

In the third quarter (July through September), certain facts were clearly in evidence:

Condition sells! Homes that hit the market all prepped and ready to take center stage generated all the buzz, and the offers! Homes in need of a facelift, minor or major, struggled and languished. Price can compensate to some degree but often still doesn’t create a sale.

Co-op sales are still hot but limited by lower inventory. Sale prices of co-ops were up 6% over the same period last year. The number of sales decreased year-over-year but so did the number of units available for sale. While the demand seems to be there, the choices are fewer.

Luxury sellers need to price adjust to move on. Whether due at least in part to the tax law changes, or simply a refl ection of the typical homebuyer looking for less house these days, the number of luxury homes currently on the market exceeds demand. Not only do sellers need to stand out from the competition, potential buyers need to perceive true value to incent them to make an offer. In NYC where new mansion and transfer taxes went into effect on July 1st of this year, the number of closings over $5M was 48% lower than a year ago! This was on top of a market that was already slow, particularly affected by fewer foreign buyers.

Interest rates are still incredibly attractive! The 30-year fi xed rate for mortgages has been trending fl at to down, hovering around 4% or slightly below for both conventional and jumbo loans. The Fed seems to have shifted away from “hike mode” for now. An August stock market rally that bounced rates upward has already corrected and brought them back down. There has also been an explosion in the availability of Non-QM loans (loans requiring no tax returns, no pay stubs, no W2’s, no 1099’s), though determination of “ability to repay” is still requisite so we don’t end up with another mortgage crisis. The availability of these loans along with revised FHA condo fi nancing guidelines are serving to increase the pool of buyers in the marketplace.

Rental prices continue to rise. The law of supply and demand is clearly in play here. There are quite a few new rental properties already built or in process here in Westchester, but since land and construction costs are so expensive, so are the rents. Individually owned units that are more reasonably priced are scooped up quickly. The new landlord-tenant laws are putting owners of rental property in a position of less security and less recourse (see article on page 5 of this report) so they are raising rents to compensate. This won’t likely change until we reach a saturation point on availability.

Barring any major economic changes or unforeseen circumstances, the Westchester market should continue at a steady pace. With baby boomers still representing a signifi cant number of existing homeowners, and seniors looking to age in place, inventory constraints will still affect the number of homes for sale, especially here in Westchester where there is little land to simply build new housing. Buyers can’t buy what isn’t for sale!

If you are considering buying or selling, key factors are price, presentation, location and timing. Seek trusted expert advice so you are making the best decisions. We can help!

Local Market Update Quarterly Data At-a-Glance

Condos Co-ops Multi-Family

SingleFamily

2018 20192018 20192018 20192018 2019

CLOSED SALES

Condos Co-ops Multi-Family

SingleFamily

2018 20192018 20192018 20192018 2019

AVERAGE DAYS ON MARKET

Condos

$392

,000

$399

,750

Co-ops

$170

,000

$180

,000

Multi-Family

$517

,500

$545

,000

SingleFamily

$678

,750

$699

,000

2018 20192018 20192018 20192018 2019

MEDIAN SALE PRICE

Condos Co-ops Multi-Family

SingleFamily

2018 20192018 20192018 20192018 2019

INVENTORY OF HOMES FOR SALE**

405

448 61

1

526

256

222

3,01

7

2,99

4

59 60 67

57 60

6663 66

401

414 54

4

455

164

177

1,91

6

1,94

0

Fast Market FactsSchool District Data Why Us?Understanding New York’s New Landlord-Tenant Laws

REAL ESTATE MARKET REPORT

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3RD QUARTER 2019

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SCHOOLDISTRICT

HOMESUNDER

CONTRACT3rd qtr 2019

HOMESUNDER

CONTRACTPrevious qtr

HOMES SOLD

3rd qtr 2019

HOMES SOLD

3rd qtr 2018

MEDIANSALEPRICE

3rd qtr 2019

MEDIAN PRICE OF ACTIVE LISTINGS

3rd qtr 2019

MEDIANSALEPRICE

3rd qtr 2018

% CHANGE YEAR-

OVER-YEAR

Ardsley 22 40 37 53 $772,500 $712,500 8.42% 42 $675,000 Bedford 64 81 71 66 $715,000 $747,050 -4.29% 230 $800,000 Blind Brook 31 29 45 37 $880,000 $955,000 -7.85% 48 $999,000 Briarcliff Manor 11 18 18 22 $975,000 $947,250 2.93% 39 $999,444 Bronxville 12 25 26 16 $1,860,000 $2,180,884 -14.71% 37 $2,225,000 Byram Hills 40 46 48 36 $950,500 $1,245,000 -23.65% 134 $945,000 Chappaqua 33 76 69 62 $944,000 $956,250 -1.28% 129 $844,000 Croton-Harmon 27 40 38 24 $596,000 $642,500 -7.24% 50 $629,000 Dobbs Ferry 20 23 23 23 $810,000 $862,000 -6.03% 28 $830,000 Eastchester 37 27 36 32 $741,000 $763,500 -2.95% 49 $719,000 Edgemont 19 31 24 49 $1,097,813 $1,140,000 -3.70% 48 $1,199,000 Elmsford 17 22 17 25 $535,000 $480,000 11.46% 31 $502,000 Greenburgh 37 57 53 47 $570,000 $545,000 4.59% 59 $599,001 Hartsdale (P.O.) 24 40 34 30 $615,500 $625,000 -1.52% 36 $614,000 Harrison 37 58 49 54 $1,300,000 $1,392,500 -6.64% 127 $1,774,998 Hastings 16 28 23 29 $750,000 $896,000 -16.29% 30 $780,000 Hendrick Hudson 38 54 46 50 $532,250 $480,000 10.89% 62 $449,000 Irvington 18 34 33 21 $930,000 $1,060,000 -12.26% 72 $874,500 Katonah-Lewisboro 61 66 68 62 $700,500 $681,750 2.75% 169 $719,000 Lakeland 76 100 88 101 $435,000 $395,000 10.13% 104 $447,000 Mamaroneck** 46 111 100 80 $1,256,500 $1,232,500 1.95% 73 $1,200,000 Mount Pleasant 31 32 34 34 $567,000 $565,250 0.31% 49 $599,000 Mount Vernon 57 55 51 51 $475,000 $435,000 9.20% 73 $499,000 New Rochelle 86 116 109 125 $690,000 $720,000 -4.17% 170 $749,000 North Salem 15 18 17 14 $515,000 $498,000 3.41% 56 $574,500 Ossining 60 55 51 67 $485,000 $479,000 1.25% 112 $497,000 Peekskill 27 30 27 40 $328,400 $360,000 -8.78% 28 $319,500 Pelham 24 59 50 38 $1,008,043 $913,250 10.38% 60 $925,000 Pleasantville 23 23 23 30 $627,500 $734,500 -14.57% 43 $679,000 Pocantico Hills 2 6 6 2 $1,205,000 $1,472,500 -18.17% 6 $964,950 Port Chester 26 41 39 31 $520,000 $530,000 -1.89% 36 $518,000 Purchase (P.O.) 7 13 13 9 $1,700,000 $1,684,800 0.90% 34 $1,875,000 Rye City 29 64 67 48 $2,080,000 $1,787,500 16.36% 90 $1,725,000 Rye Neck 14 29 27 25 $1,188,350 $934,000 27.23% 29 $845,000 Scarsdale 59 94 100 89 $1,463,000 $1,425,000 2.67% 146 $1,649,000 Somers 57 58 66 46 $510,000 $549,750 -7.23% 85 $567,450 Tarrytown 18 27 23 26 $872,000 $699,000 24.75% 23 $774,000 Tuckahoe 6 11 13 15 $995,000 $845,000 17.75% 26 $899,000 Valhalla 17 25 26 24 $607,750 $511,000 18.93% 30 $609,500 White Plains 76 77 84 80 $680,000 $708,000 -3.95% 95 $724,901 Yonkers 151 168 146 183 $529,000 $520,000 1.73% 203 $537,000 Yorktown 66 59 64 54 $542,500 $494,500 9.71% 67 $520,000

* Data sourced from Hudson Gateway Multiple Listing Service and sorted by school district unless otherwise noted. **Includes Larchmont P.O.

Single Family Homes Under Contract and Closed Sales*

ACTIVELISTINGS

3rd qtr 2019

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Overall Sales Down 1.3% Total number of sales, inclusive of all main property types as shown in detail in this report, are down 1.3% compared to the same quarter one year ago. Total sales are up 20% since Q2 of this year, an identical seasonal jump to 2018, refl ecting that the spring market came on the later side again this year. Sales were up in all categories, with the exception of co-ops which saw a 16% decline, likely because inventory of co-ops for sale has been dropping dramatically over the past year plus. Multi-family homes showed the strongest increase, up 7.9%, with single-family sales up 1.25% and condos up 3.2%.

Prices Up 3% Year-Over-YearSale prices were up in every housing category. The median single-family home sale price of $699,000 in the 3rd quarter of this year is up 3% over the same period in 2018 but is slightly down from $705,000 in Q2 of this year. Single-family sales his-torically see their strongest sale prices in the 2nd quarter. Even stronger price gains were seen in the co-op market (6%) and multi-family properties (5.3%). Condo prices were also up by 2%. Overall sales continue strong.

Inventory Down 2.3%Overall inventory ends the quarter down 2.3% from the same quarter of 2018, and down another 6.7% just from Q2 of this year. Only condo inventory increased, rising 10.6% from a year ago, though lower than it was in Q2 of this year. There is currently just over 4 months of total inventory so it’s technically still a seller’s market, but it does vary greatly based on property type and price point. For instance, single-family homes are at only 3 months of inventory, with even lower inventory in modestly priced homes, and higher inventory in the luxury market.

% of List Price ReceivedSingle-family homes sold for 98.2% of list price in the 3rd quarter of 2019, virtually unchanged from last quarter, and down ever so slightly from 98.5% one year ago. This statistic has remained stable for over 6 years as the housing market’s strength has persevered, while inventories remain low, supporting the laws of supply and demand. While the fall market seems to be quieting already, the most desirable properties are still seeing strong offers but with somewhat fewer buyers competing.

* Per data obtained from the Hudson Gateway Multiple Listing Service.

How was the Westchester Market in the 3rd Quarter of 2019?

How much negotiating room was there?

Quarterly Home Sales Report - At a Glance.*

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3RD QUARTER 2019

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Condos Co-ops Multi-Family

SingleFamily

2018 20192018 20192018 20192018 2019

CLOSED SALES

Condos Co-ops Multi-Family

SingleFamily

2018 20192018 20192018 20192018 2019

AVERAGE DAYS ON MARKET

Condos

$392

,000

$399

,750

Co-ops

$170

,000

$180

,000

Multi-Family

$517

,500

$545

,000

SingleFamily

$678

,750

$699

,000

2018 20192018 20192018 20192018 2019

MEDIAN SALE PRICE

Condos Co-ops Multi-Family

SingleFamily

2018 20192018 20192018 20192018 2019

INVENTORY OF HOMES FOR SALE**

405

448 61

1

526

256

222

3,01

7

2,99

4

59 60 67

57 60

6663 66

401

414 54

4

455

164

177

1,91

6

1,94

0

Fast Market Facts, Year Over Year, Q3 2019, Westchester County.*

* Per data obtained from the Hudson Gateway Multiple Listing Service.** Average monthly inventory of homes for sale.

REAL ESTATE MARKET REPORT

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3RD QUARTER 2019

5

Understanding New York’s New Landlord-Tenant Laws

Current and prospective landlords and tenants alike should be aware of new statewide regulations that were passed into law and became effective on June 14, 2019 under The Housing Stability and Tenant Protection Act of 2019. These laws, unless changed or modifi ed, are permanent and have no expiration date. The changes signifi cantly modify and expand the existing rent regulations. Most of the laws are limited to residential properties and do not apply to commercial rentals.

* Please be advised: We are providing this information, as we understand it, as a courtesy to the reader. We are not attorneys and are not offering this information as legal advice. All landlords and tenants should consult their own legal counsel for questions, and before proceeding with any transaction.*

Here are some of the most important changes that the law provides for:

Landlords cannot charge application fees.

Landlords may charge for credit and background checks but only the actual cost or $20, whichever is lower. The landlord must provide a copy of the credit or background check to the prospective tenant.

If a tenant provides a copy of a credit or background check that was performed within the previous 30 days, the fee for any new or additional check the landlord chooses to perform must be waived.

Security deposits are interpreted to now be limited to one month’s rent. It is unclear and uncertain at this time if this advance limitation will apply to non-traditional leases like short-term vacation rentals.

There is no mention of pet deposits in the new law. It is currently being interpreted that landlords cannot charge pet deposits

since the law limits any deposit or advance to one month’s rent.

Since “deposit or advance” money paid by a tenant to a landlord is limited to one month’s rent, tenants cannot pre-pay rent in advance. Even if it is the tenant offering to do so, the landlord cannot accept such advances for any reason.

After a tenant vacates, the landlord has fourteen (14) days to return the security deposit. If the deposit is not being returned in full, the landlord must itemize and explain all deductions.

A landlord cannot charge the tenant a late fee if rent is paid in 5 days or less after the rent is due.

Late fees are now limited to 5% of the monthly rent or fi fty dollars ($50.00), whichever is lower. For example, if the rent is $1,000/month, 5% is $50. If the rent is $5,000/month, 5% is $250 but the max that can be charged is still $50. If rent is $750/month, 5% is $37.50 and that is the max amount of late fee.

Landlords must provide written notice of rent increases over 5%, or any notice that the tenancy will not be renewed. The

requirement of how much notice must be given corresponds to the amount of time the tenant has occupied the property.

It is unclear so far how any changes in the law may apply to co-op apartments in which purchasers enter into a shareholder-tenant lease agreement.

The above changes only touch on a few of the more commonly asked questions. There are numerous changes to regulations on eviction proceedings, capital improvements to apartments, landlord record keeping, Rent Control and Rent Stabilized units, and much more. To read the full extent of the changes, go to: https://bit.ly/2xA6lth. Contact legal counsel or experts for further advice.

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It is our sincere belief that we are only as good as how we represent each and every client and community that we serve. Our reputation is made and tested on a daily basis. It is with this keen awareness that we strive for success in the eyes of those we serve.

Westchester Real Estate, Inc. is a truly unique affi liation of premier real estate companies serving the markets of Westchester & Putnam Counties as well as NYC. Our companies have conscientiously and diligently created their stellar reputations and success over years and sometimes decades. Our achievements are evidenced by the 20,000+ buyers, sellers, tenants & landlords who have chosen to work with us over the past decade, and by our consistent ranking among the top fi ve companies in our marketplace.

We pride ourselves in being: • Highly informed about the market • Entrenched in our various communities • Students of real estate who are always learning and teaching others • Staunch protectors of the “American dream” and laws that protect that • Among the most professional and ethical practitioners in our industry.What we take pride in are the things that benefi t and make a world of difference to our clients.

Our value proposition is different. Our caring and concern are genuine. The delivery and quality of our services are unmistakable. If you haven’t already, we hope you will choose to experience all this for yourself so we can show you what we mean. If you are one of our loyal clients, we thank you for your patronage and trust.

Westchester Real Estate, Inc.Regional Offi ce & Relocation Center358 Route 202, Suite 2, Somers, NY 10589(914) 961-5510 • www.HomesNY.comEmail: Info@HomesNY.com

NEWJERSEY

ROCKLAND COUNTY

PUTNAM C OUNTY

WE S TCHE S TE R C OUNTY

FA IRFIELD C OUNTY, CONNECTIC

UTHudsonRiver

TappanZee Bridge

I-684

Route 9

I-287

I-87

HutchinsonPkwy

Long IslandSound

Rye

White

Armonk

Bedford

PoundRidge

CrossRiver

Katonah

Cortlandt Manor

YorktownSomers

NorthSalem

SouthSalem

Mt. Kisco

Pleasantville

Hawthorne

Port Chester

Harrison

Mamaroneck

BriarcliffManor

RyeBrook

Irvington

DobbsFerry

Ossining

Scarsdale

Chappaqua

I-84

I-684

Route 22

BRONX

New YorkCity

Hastings-on-Hudson

Mt. VernonBronxville

HartsdaleArdsley

Tarrytown

Saw MillRiver Pkwy

TaconicPkwy

SprainPkwy

NASSAUCOUNTY

TaconicPkwy

N

Pelham

QUEENS

Yonkers

I-84

DUTCHESS COUNTY

BROOKLYN

Thornwood

New Rochelle

Larchmont

Peekskill

Croton-on-Hudson

Mahopac

Plains

Eastchester

J. Philip Real Estate, LLC • www.jphilip.com522 North State Road, Briarcliff Manor, NY 10510(914) 762-2500

J. Philip Real Estate, LLC • www.jphilip.com134A Fifth Avenue, Pelham, NY 10803(914) 738-2200

J. Philip Real Estate & J. Philip Commercial Group • www.jphilip.com593 Route 6, Mahopac, NY 10541(845) 621-2200

Mancini Realty • www.mancinirealestate.com358 Route 202, Somers, NY 10589(914) 276-1010

Park Sterling Realty • www.parksterlingrealty.com17 ½ Park Place, Bronxville, NY 10708(914) 337-1234

Peter J. Riolo Real Estate • www.peterriolo.com30 Main Street, Hastings-on-Hudson, NY 10706(914) 478-1400

The Michael Shapot Team, Compass Real Estate NYC www. michaelshapot.com 2150 Broadway, 2nd Floor New York, NY 10023(347) 752-0251

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