REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.5510

3RD QUARTER 2018

1

What You Need to Know About the Local Real Estate Market - Q3 2018In Q3, the market felt like it was settling down some. That’s rather refreshing after the spring frenzy that saw sellers rushing to catch the season’s peak prices and the frustration of buyers who were still searching for that perfect home.

Sales and prices remained strong. Some of the inventory issues that we experienced earlier in the spring and summer started to mitigate. While overall inventory is still in short supply, there is slightly more on the market now in the mid-range price points; perhaps because many buyers have now purchased, or because prices have been rising along with interest rates, moving some buyers out of the market. The abundance of high-end inventory is subsiding somewhat. Sellers whose overpriced listings were rejected by the market have either taken substantially lower offers in order to sell, or simply taken them off the market for now.

Recent media reports about the housing market can be confusing, especially if you only read the headlines. Those have ranged anywhere from “mixed results” to predictions of a “pause” in the market. You’ve probably heard the old adage that real estate is local, and it’s so true. Even locally at the County level can differ from individual communities, neighborhoods or even streets. Overall trends are certainly important, but if you want to know how what’s happening is impacting your personal property value or your ability to purchase a home, consult a reputable and knowledgeable real estate agent to help you decipher the data.

We’d like to provide some clarity here with regard to our local market, albeit on a general level. As things settle down, there is always the fear that the market is about to take a dramatic drop. With these fears have come rumblings of weakening buyer demand, higher inventory and falling home prices. Perhaps it’s flashbacks to the housing crisis of over a decade ago, or some underlying belief that things can’t be so good for so long. While we don’t have a guaranteed crystal ball, we are not expecting anything dramatic like that to happen here in Westchester in the near future. What we may start to see are softening home prices. Softening prices are different than falling

prices. Softening means that home values may not increase at the same rate we’ve gotten accustomed to lately. But that’s not the same as falling or decreasing prices, it just means slower appreciation.

There are several reasons for the subtle market shifts we are experiencing. According to the laws of supply and demand, prices appreciate most when supply is lowest. While supply has not increased sufficiently to meet demand for the most desirable properties, it has risen in some market segments. Where it hasn’t, prices continue to increase, pushing some buyers out of the market. We have also seen overly ambitious sellers at all price points who have chosen to list their homes at prices the market won’t sustain. With buyers rejecting those overpriced properties, they are sitting on the market and ultimately selling at lower prices than if they’d been priced correctly from the start. This gives the impression of a slower market which plays on the psyche of potential buyers and sellers. Additionally, there is the factor of rising interest rates which affect affordability and, here in Westchester, the uncertainty of how the tax law changes will affect property owners whose taxes exceed the new caps for deductions. On the international front, there is currently less money coming into the U.S. from China for the purchase of real estate, affecting major metro areas, slowing down the NYC market which does have a “trickle up” effect on Westchester. Current tariffs on Canadian lumber, unless re-negotiated, are making the cost of home building more expensive.

On the flip side of some of these concerns, there is historically low unemployment, steadily positive consumer confidence, and interest rates that, while higher than a couple of years ago, are still some of the lowest in memory. Westchester properties will always remain in high demand based on our proximity to NYC and fantastic quality of life. While we may see pullbacks or shifts at times, our housing market possesses innate strength and resilience. Prices are not decreasing, home sales are still strong, and Westchester’s real estate market is just fine!

Local Market Update Quarterly Data At-a-Glance

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

CLOSED SALES

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

AVERAGE DAYS ON MARKET

Condos

$385

,250

$392

,000

Co-ops

$165

,000

$170

,000

Multi-Family

$472

,000

$517

,500

SingleFamily

$680

,000

$678

,750

2017 20182017 20182017 20182017 2018

MEDIAN SALE PRICE

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

INVENTORY OF HOMES FOR SALE**

425

405

841

611

254

256

2,92

4

3,01

7

406

401

590

544

196

164

1,99

9

1,91

6

57 59

77

67 65 60

66 63

Fast Market FactsSchool District Data Why Us?The Difference Between Condos and Co-Ops

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.5510

3RD QUARTER 2018

2

SCHOOLDISTRICT

HOMESUNDER

CONTRACT3rd qtr 2018

HOMESUNDER

CONTRACTPrevious qtr

HOMES SOLD

3rd qtr 2018

HOMES SOLD

3rd qtr 2017

MEDIANSALEPRICE

3rd qtr 2018

MEDIAN PRICE OF ACTIVE LISTINGS

3rd qtr 2018

MEDIANSALEPRICE

3rd qtr 2017

% CHANGE YEAR-

OVER-YEAR

Ardsley 10 36 53 52 $712,500 $725,625 -1.80% 45 $793,950 Bedford 30 47 66 71 $747,050 $687,000 8.74% 205 $950,000 Blind Brook 9 25 37 23 $955,000 $906,000 5.41% 55 $894,750 Briarcliff Manor 6 14 22 33 $947,250 $775,000 22.23% 37 $918,250 Bronxville 2 12 16 17 $2,180,884 $2,667,500 -18.24% 42 $1,895,000 Byram Hills 21 29 36 53 $1,245,000 $1,080,000 15.28% 121 $1,290,000 Chappaqua 17 43 62 71 $956,250 $920,000 3.94% 128 $907,250 Croton-Harmon 9 16 24 40 $642,500 $617,500 4.05% 42 $575,000 Dobbs Ferry 4 13 23 21 $862,000 $925,000 -6.81% 34 $787,000 Eastchester 15 23 32 41 $763,500 $750,000 -1.80% 42 $749,000 Edgemont 10 30 49 36 $1,140,000 $1,082,500 5.31% 46 $1,083,500 Elmsford 14 11 25 24 $480,000 $495,000 -3.03% 37 $569,000 Greenburgh 23 28 47 51 $545,000 $530,000 2.83% 70 $584,450 Hartsdale (P.O.) 16 25 30 40 $625,000 $675,000 -7.41% 53 $647,500 Harrison 18 36 54 45 $1,392,500 $1,232,000 13.03% 144 $1,585,000 Hastings 5 20 29 30 $896,000 $825,034 8.60% 26 $784,450 Hendrick Hudson 26 41 50 48 $480,000 $499,750 -3.95% 80 $514,250 Irvington 8 9 21 24 $1,060,000 $938,500 12.95% 64 $964,000 Katonah-Lewisboro 29 33 62 76 $681,750 $653,750 4.28% 158 $672,500 Lakeland 42 73 101 86 $395,000 $391,500 0.89% 100 $424,900 Mamaroneck** 25 56 80 97 $1,232,500 $1,040,000 18.51% 84 $1,112,500 Mount Pleasant 17 23 34 36 $565,250 $602,500 -6.18% 43 $644,450 Mount Vernon 30 40 51 59 $435,000 $365,000 19.18% 72 $469,050 New Rochelle 62 92 125 111 $720,000 $715,000 0.70% 174 $639,500 North Salem 9 13 14 25 $498,000 $519,000 -4.05% 56 $600,000 Ossining 34 41 67 64 $479,000 $454,500 5.40% 104 $439,111 Peekskill 19 21 40 22 $360,000 $280,000 28.57% 32 $319,450 Pelham 10 27 38 57 $913,250 $940,000 -2.85% 50 $1,050,000 Pleasantville 7 23 30 31 $734,500 $598,000 22.83% 43 $743,498 Pocantico Hills 3 2 2 3 $1,472,500 $738,500 99.39% 5 $1,202,000 Port Chester 22 21 31 36 $530,000 $506,000 4.74% 32 $499,000 Purchase (P.O.) 6 7 9 5 $1,684,800 $1,000,000 68.48% 45 $1,945,000 Rye City 12 34 48 58 $1,787,500 $1,952,500 -8.45% 82 $1,995,000 Rye Neck 12 22 25 25 $934,000 $1,100,000 -15.09% 41 $857,450 Scarsdale 16 64 89 89 $1,425,000 $1,635,000 -12.84% 158 $1,575,000 Somers 26 24 46 46 $549,750 $548,750 0.18% 110 $549,500 Tarrytown 5 16 26 22 $699,000 $729,500 -4.18% 22 $720,100 Tuckahoe 3 11 15 15 $845,000 $750,000 12.67% 23 $995,000 Valhalla 17 18 24 28 $511,000 $577,000 -11.44% 33 $585,000 White Plains 24 42 80 81 $708,000 $680,000 4.12% 74 $712,500 Yonkers 101 131 183 181 $520,000 $490,000 6.12% 186 $549,000 Yorktown 30 35 54 65 $494,500 $520,000 -4.90% 105 $539,450

* 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 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.5510

3RD QUARTER 2018

3

Overall Sales Down 5.2% Total number of sales, inclusive of all main property types as shown in detail in this report, are down 5.2% compared to the same quarter one year ago. Total sales are up 20% since Q2 of this year, a typical seasonal jump reflecting homes that went into contract in late spring or early summer and closed in the 3rd quarter. No categories saw an increase, but multi-family home sales saw the largest decline at 16.3%, followed by co-ops down 7.8%, single-family homes down 4.2%, and condos down 1.2%. Low inventory of properties in the most desirable categories and price points continues to limit sales.

Prices Flat Year-Over-YearThe median single-family home sale price of $678,750 in the 3rd quarter of this year is relatively unchanged from $680,000 as seen in the 3rd quarter of 2017, and down 4.5% from $710,800 in the 2nd quarter of this year. Single-family sales historically see their strongest sale prices in the 2nd quarter. Multi-family properties saw a signifi-cant gain, up 9.6%, with a 3% increase for co-op prices, and a 1.8% gain for condos. Overall sales continue strong. Prices reflect seasonal fluctuations and are the product of the law of supply and demand.

Inventory Down 3.5% Overall inventory ends the quarter down 3.5% from the same quarter of 2017, and down just over 2% from the 2nd quarter of this year. These drops are far less dramatic than some we’ve seen over the past several years. For the second consecutive quarter, we actually experienced a modest increase in single-family inventory, up 3.2% over one year ago. Active co-op listings dropped 27% over last year’s same quarter, as co-ops continue to be scooped up by entry level and downsizing buyers. With younger buyers continuing to enter the market, and prospective purchasers staying focused on lower taxes and more conveniences, there is improving strength in the sales of more modest or investment properties.

% of List Price ReceivedSingle-family homes sold for 98.5% of list price in the 3rd quarter of 2018, unchanged from last quarter, and down ever so slightly from 98.7% one year ago. This statistic has not dropped below 97% in the past 5 years, continuing the pattern of strength typically seen in a low-inventory market. Many of the most desirable properties are seeing multiple offers and selling at prices over asking, so those buyers have very little room to negotiate.

* Per data provided by the Hudson Gateway Association of Realtors

How was the Westchester Market in the 3rd Quarter of 2018?

How much negotiating room was there?

Quarterly Home Sales Report - At a Glance.*

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.5510

3RD QUARTER 2018

4

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

CLOSED SALES

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

AVERAGE DAYS ON MARKET

Condos

$385

,250

$392

,000

Co-ops

$165

,000

$170

,000

Multi-Family

$472

,000

$517

,500

SingleFamily

$680

,000

$678

,750

2017 20182017 20182017 20182017 2018

MEDIAN SALE PRICE

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

INVENTORY OF HOMES FOR SALE**

425

405

841

611

254

256

2,92

4

3,01

7

406

401

590

544

196

164

1,99

9

1,91

6

57 59

77

67 65 60

66 63

Fast Market Facts, Year Over Year, Q3 2018, Westchester County.*

* Per data reported by the Hudson Gateway Association of Realtors.** Average monthly inventory of homes for sale.

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.5510

3RD QUARTER 2018

5

The Difference Between Condos and Co-Ops, and Why It MattersAre you thinking of entering the ranks of homeownership with the purchase of a condominium or co-operative apartment, or perhaps downsizing from a larger home into something more manageable with less maintenance? If so, you should fully understand the differences between these two property types before you begin shopping. The type of property you purchase has several implications, from your tax benefits to your ability to rent the property should you decide to move again to available financing options.

CONDOMINIUM OWNERSHIP

The owner of a condominium has a fee simple title, the same as for a single-family home, and deed to the individual condo unit as well as an undivided interest in the common elements of the property such as the land, walls, hallways, roof, pool, clubhouse, etc. A prospectus or offering plan defines the common elements and describes the individual units. The condominium by-laws define the operating rules and establish procedures for an elected Board of Managers to oversee operation of the condominium. A monthly association fee is paid by the condo owners to cover the expenses of maintaining and operating the common elements (not tax deductible). Real estate taxes on the unit are assessed to and paid directly by the unit owner (tax deductible). Mortgage interest on any purchase loan is also paid directly by the unit owner (tax deductible). Generally, a condominium owner may sell or rent their unit as they wish, although some condominiums do require that they’re offered a right-of-first-refusal before a sale is consummated. Condominium units exist in a variety of architectural styles, including buildings, attached, semi-attached and detached simplexes and duplexes.

COOPERATIVE OWNERSHIP

In cooperative homeownership, the title to the land, building(s)

and common elements is held by an apartment corporation. Unit owners purchase shares of stock in the corporation and obtain a proprietary lease for the unit and a stock certificate representing the number of shares owned. It is technically the purchase of “personal property” rather than “real property”. As

stockholders, unit owners elect a Board of Directors to oversee administration of the building. The by-laws of a co-op typically give the Directors the right to approve/disapprove of prospective purchasers, in accordance with anti-discrimination laws, since all owners are financially vulnerable if other owners default. The by-laws may also limit a shareholder’s ability to rent their unit because higher rental ratios can affect the tax status of the entire property; this can result in higher owner occupancy rates than condos. Unit owners pay monthly fees that cover maintenance and management costs, as well as the corporation’s property taxes and the underlying mortgage on the building. The portion of the monthly fee that represents the property taxes and underlying

mortgage interest is tax deductible for the unit owner. Even though co-ops are considered personal property, for income tax purposes the IRS allows co-op owners to also deduct the interest on a co-op purchase loan. Values per square foot for co-ops are generally less than for condos and settlement costs are often lower. However, the purchase of a co-op often requires a higher down payment (as established by the co-op’s by-laws or the lender) and the pool of potential lenders for a co-op loan may be smaller than for a condominium mortgage.

We'd be happy to answer any questions, and to help you determine which of these options may match your individual needs.

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.5510

3RD QUARTER 2018

6

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 affiliation 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 five 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 benefit 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 Office & 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.com2150 Broadway, 2nd Floor New York, NY 10023(347) 752-0251

Why Us?