Houlihan Lawrence 3Q19 Market Report

EXECUTIVE SUMMARY (Excerpt) by Stephen Meyers (CEO) and Chris Meyers (President)

The real estate market in Westchester, Putnam and Dutchess counties remains polarized depending on price point, but the third quarter brought some welcome life into a previously quiet 2019. The first two quarters of the year were anything but frothy, but once buyers were able to put the new tax laws into clear perspective the market turned on quite predictably. The tax reform, however, was not the only factor that kept many buyers on the sidelines. Perception of value remained critical in order for buyers to take action. With a surplus of data readily available to consumers, both online presentation and price must be flawlessly aligned in order to stand out from the competition. In many of our markets, primarily where there are higher price points and growing inventory, sellers needed to adjust downward before the buyers took action. Where the sellers did adjust, Westchester County sales rebounded. Most notably the Sound Shore and parts of Northern Westchester experienced double digit increases over last year. In Westchester, there was an average increase in home sales of 0.6% in the third quarter this year as compared to Q3 2018 and the median sale price increased 3.0%. In the entry level price points multiple bid situations were still prevalent where inventory was low.

Although the market activity started later this year than we’re accustomed, it extended throughout the summer, a traditionally quieter time. August, in fact, was our busiest month in 2019 for closings and the activity has continued throughout September. As we approach an election year, which adds uncertainty to an already fragmented market, you can count on Houlihan Lawrence for proprietary market intelligence to guide your decision making.

To see the full summary and report CLICK HERE.

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Houlihan Lawrence 2Q19 Market Report

EXECUTIVE SUMMARY (Excerpt) by Stephen Meyers (CEO) and Chris Meyers (President)

After the lackluster sales of the first quarter, the second quarter helped to bridge the gap for many Westchester towns. While changes in the tax laws kept buyers at bay in the first quarter, once April rolled around, the buyers rallied. The overall number of single family home sales rose over first quarter, with some exceptions, and are now down 3.9% year over year. The average sale price is $885,309, down 3.7% as compared to this time last year, a nice improvement over last quarter (down 8.2%). The combination of inventory on the rise (up 4.5% over last year) and the number of pending sales relatively unchanged sends a message to sellers.

While the more reasonable price brackets continue to enjoy high demand, the higher price ranges are experiencing the most difficulty. This is amplified by market similarities in New York City where many of our buyers originate. Buyers have more choices across these higher price points and there is no sense of urgency. Value is paramount to luxury buyers, and unless sellers respond with price adjustments, the inventory will continue to grow and languish.

Co-operative and Condominium sales in Westchester County are flourishing and the number of sales is up for both. Average sale price in the second quarter is up 15.6% for condominiums and 6.1% for co-ops. These appeal to both first time buyers and empty nesters looking to lift their tax burden and lower their overall maintenance and costs.

Likewise, Putnam County experienced an increase in activity and number of sales in the second quarter. Homes sold are now up 3% over second quarter last year. This is a refreshing change compared to the first quarter when sales were sluggish. The median sale price was also on the rise to $363,000, up 4% over last year. Supply and demand remains high under $800,000, but there is low demand above that price point. The data for Q2 in Dutchess County varies wildly depending on the area, given the large size of the County. Inventory is steady with pending sales down 1.5%. While that appears to be fairly balanced, sales in Northeast Dutchess are down 32% while in Northwest Dutchess, they’re up 11%. The landscape, as compared to the first quarter of the year, has certainly improved in most areas but not all. We are experiencing a transitioning market. Prices are adjusting downward at the high end to align themselves with buyer aspirations and expectations. That said, with the uncertainty of the new tax reform behind us, and the strong economy and low interest rates in place, we anticipate that buyers will continue to invest in homeownership.

To see the full summary and report CLICK HERE.

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Important Tax Grievance Reminder

Don’t miss this opportunity! Tax Grievance Day is JUNE 18TH in Rye & Harrison. Here is everything you need to know…

The RAR and what it is used for: The Residential Assessment Ratio (RAR) is an indication of the level of assessment for residential real property in a municipality. It is a measurement of the overall ratio of the total assessed value of residential property in the municipality compared to the full market value of that residential property. The RAR (Residential Assessment Ratio) can be used by homeowners in a Board of Assessment Review (BAR) grievance and in a Small Claims Assessment Review (SCAR) hearing. Bottom line is your assessed value divided by the RAR will tell you what the city/town has your house valued at for tax purposes. The state issues updated RARs annually around this time.  In Rye you can find your assessed value by going to joanomeara.com – Click on Rye City/Resident Services/Taxes/Property Tax Search. Enter your address and you will see the Total Assessed Value. For Harrison go to joanomeara.com – Click on Village/Town of Harrison/Departments/Assessor/Final Assessment Roll

ASSESSMENTS SHOULD BE CHECKED ANNUALLY.
Are you interested in getting your home assessment lowered? All municipalities in Westchester County, including Rye and Harrison, have a Grievance Day – a specific day to hear property tax appeals.  That day is Tuesday, June18th. The tax Grievance period this year is is June 1st-June 18th. Before pursuing formal review of your assessment, you should first determine if you are assessed fairly. Click HERE to read about the steps in this process.

Rye: To download the form and the instructions on the City of Rye Website then look under Permit & Forms/Tax.

In Harrison: Click Here to view procedures. Applications are available in the Assessor’s Office in Town Hall (1 Heineman Place).

For more information on RAR click HERE. For more information on property assessments click HERE.

If you have any questions or concerns please feel free to email me (jomeara@houlihanlawrence.com) or call me (914.329.5329)!

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Tax Grievance: All You Need to Know

Tax Grievance Day is June 18th in Rye & Harrison. Here is what you need to know…

The RAR and what it is used for: The Residential Assessment Ratio (RAR) is an indication of the level of assessment for residential real property in a municipality. It is a measurement of the overall ratio of the total assessed value of residential property in the municipality compared to the full market value of that residential property. The RAR (Residential Assessment Ratio) can be used by homeowners in a Board of Assessment Review (BAR) grievance and in a Small Claims Assessment Review (SCAR) hearing. Bottom line is your assessed value divided by the RAR will tell you what the city/town has your house valued at for tax purposes. The state issues updated RARs annually around this time.  In Rye you can find your assessed value by going to joanomeara.com – Click on Rye City/Resident Services/Taxes/Property Tax Search. Enter your address and you will see the Total Assessed Value. For Harrison go to joanomeara.com – Click on Village/Town of Harrison/Departments/Assessor/Final Assessment Roll

ASSESSMENTS SHOULD BE CHECKED ANNUALLY.
Are you interested in getting your home assessment lowered? All municipalities in Westchester County, including Rye and Harrison, have a Grievance Day – a specific day to hear property tax appeals.  That day is Tuesday, June18th. The tax Grievance period this year is is June 1st-June 18th. Before pursuing formal review of your assessment, you should first determine if you are assessed fairly. Click HERE to read about the steps in this process.

Rye: To download the form and the instructions on the City of Rye Website then look under Permit & Forms/Tax.

In Harrison: Click Here to view procedures. Applications are available in the Assessor’s Office in Town Hall (1 Heineman Place).

For more information on RAR click HERE. For more information on property assessments click HERE.

If you have any questions or concerns please feel free to email me (jomeara@houlihanlawrence.com) or call me (914.329.5329)!

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Spring Tip for Your Home

The first day of spring was March 20th so it is time to think spring cleaning! Whether you are putting your home on the market or staying put this spring…it is probably time to freshen up your house.  Here are a few simple ideas to give your home a new feel inside and out:

• Clean Out Your Closets – Time to remove (and donate) unused clothing and accessories.
• Clean Painted Walls – Most cases just a wet rag or sponge with a little bit of a mild dishwashing detergent will do the trick.
• Clean Carpets & Tile Floors – Baking Soda and warm water will give your tile floors a new shine. Determine if your rugs have waterproof backing.  If they do, a shampoo machine will do the trick. For Oriental rugs and other area rugs with no backing it is smart to call a professional.
• Reorganize & Declutter Bookshelves – Remove unwanted books/items, consider changing the placement of the books – alternate horizontally and vertically, and mix in framed photos to offset the books.
• Clean Window Treatments – Most treatments don’t need a wash, but rather a good dusting.  Vacuum with an attachment or put in the dryer at low heat with a fabric softener sheet.
• Wash Windows & Window Screens – Always wash glass windows on a cloudy day – strong sun will dry windows too quickly and cause streaks.  Warm water and mild dishwashing detergent will clean screens.
• Donate Unused Items – Clean out the garage, basement, closets, toy room, etc… Host a garage/tag sale or donate to one of the many charitable organization in Westchester County.
• Clean Exterior of Your House – Check exterior of your home for splitting wood, mold and peeling paint. Freshen up painted trim on your house and power wash patios/walkways and house.  If you aren’t sure if your exterior can handle a powerwash it is always prudent to call a professional.
• Gutters – Remove debris from gutters and make sure all downspouts drain away from foundation.
• Outdoor Maintenance – Clean and stain deck, check driveway for cracks, clean garage door, clean outdoor furniture and grill, checks faucets and houses for freeze damage, have irrigation system serviced, weed garden beds, trim shrubs and mulch.

For a list charitable organizations or professional oragnizers in our area visit my website and click on Local Partners. 

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Real Estate Q&A This Wednesday

Join us this upcoming Wednesday for our 2nd annual Real Estate Q&A. Perfect opportunity for you to get all your real estate related questions answered, have some refreshments and win some home inspired raffle prizes. RSVPs appreciated to jomeara@houlihanlawrence.com.

Hope to see you there!

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Market Reflections and Insight

This article, written by C. Anderson and Joan O’Meara, appeared recently in The O’Meara Team’s 4Q18 Newsletter…Realty Check. If you would like to be included on our mailing list and receive this 4-page comprehensive quarterly newsletter in your mailbox, please email jomeara@houlihanlawrence.com.

Market Reflections & Insight
Joan O’Meara, associate real estate broker with Houlihan Lawrence’s Rye & Harrison office, provides a glimpse at some of the year’s real estate highlights and offers some insights into the year ahead.

Looking Back

Houlihan Lawrence continued to grow and dominate the market locally, throughout Westchester and Connecticut. HL participated in the highest recorded sale with the David Rockefeller Estate selling at $33,000,000. It was listed at $22,000,000 and had the interest of multiple buyers.

HL continued to participate in more than one third of all transactions in Westchester, compared to its next closest competitor with just 13%. Ranked by the Westchester Board of Realtors, 9 of the top 10 agents throughout Westchester were HL agents in 2018. HL also commanded the Rye market with 6 of the top 10 agents – including Joan O’Meara and team. As one of the top agents in the Rye office, O’Meara and team had 52 transactions and finished the year with over $65M in sales.

O’Meara points out that there was also clear evidence of the success of HL’s continually improving and innovative marketing – locally, as well as regionally, nationally and internationally. “Our participation in over 1/3 of all transactions in Westchester allows us to collect and develop proprietary data, giving us an edge.” She further describes that the most important pieces of data include where the buyers are coming from, what price points are selling, and other crucial information that helps both buyers and sellers. 

Looking Forward

We enter 2019 with some challenges and opportunities. The year will likely get off to a slow start as a result of fewer homes in contract in 2019 versus last year in Rye City. In Harrison, the number of homes in contract is the same as this time period last year. We expect to see new inventory in the coming weeks/months with the hope that this will motivate buyers to transact. This softer market can be attributed to the soft NYC real estate market, a volatile stock market, and changes in the tax law coming into effect now.

The good news as we start the new year is that there are buyers out there looking. Additionally, there is also real value for buyers, as motivated sellers adjust prices accordingly. A recently reduced property resulted in 16 showings within approximately a week. Many of these potential buyers were just beginning their search. This is significant in that it shows the importance of pricing and that there are still buyers in the wings who are keeping a watchful eye on inventory and an open ear to strong value opportunities.

Our spring market started in January, and new listings will continue to join the existing inventory over the next few weeks and months. Sellers willing to price accordingly will actually drive the market in 2019. Aligning with a top real estate agent, with years of experience, will equip both savvy buyers and motivated sellers with the know-how to navigate a tough market and still reach a successful transaction.

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Houlihan Lawrence 3Q18 Market Report

EXECUTIVE SUMMARY (Excerpt) by Stephen Meyers (CEO) and Chris Meyers (President)

Softening. At the end of Q2, we discussed the likelihood of prices leveling off and, in some markets, edging back. At the end of Q3, we are starting to see prices doing just that. When you look at the overall picture, inventory is on the rise in nearly every market, pending sales are declining, and sales are either flat or declining. What we are seeing is a market that is softening.

In Westchester, home sales were down 4.1%. Although overall inventory was up in Westchester, it’s important to note that inventory continues to be low at the most affordable prices, homes priced below $500,000. A troubling sign was the decrease in showing activity by 11% through the end of the quarter. Some of that decline could be attributed to lower inventory at affordable price points, however, overall showings were down for homes priced up to $1,500,000. As showings are a leading indicator of pending sales, it’s no surprise that pending sales are down across the board.

Here are some trends we are seeing as we move towards the end of 2018. The early fall market conditions are pointing to a chilly winter ahead. Despite inventory rising at an even faster pace than Q3, showings continue to be down more than 11.5%. More supply and less demand places potential home buyers in the driver’s seat. It remains to be seen however if they are going to take the wheel. With listing prices remaining nearly flat at all-time highs, interest rates on the rise and wage growth nearly stagnant, buyers may not be interested in making a move anytime soon.
For sellers, we mentioned it last quarter and we are reiterating it again. If you want to sell, you will need to price competitively. The luxury of low inventory is gone. In this market, setting a high price and then gradually reducing will result in chasing the market down. In Westchester, homes priced correctly out of the gate sell, on average, in 49 days and at 99.8% of the asking price. Homes priced too high, that experience one or more price reductions spend an average of 344 days on the market and sell for 82.4% of the original list price.

To read the complete executive summary and to see the comprehensive report CLICK HERE.

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Houlihan Lawrence 3Q18 Luxury Report

Third Quarter 2018 Executive Summary – Luxury Market Report (Excerpt)
by Anthony Cutugno (Senior Vice President/Director of Private Brokerage):

Luxury homes sales north of NYC through the third quarter showed mixed results. In Westchester, luxury sales (sales over $2M) were down slightly. Recent reports indicate the housing sales nationwide are slowing because wage growth is not keeping pace with the increase in real estate prices. Our luxury markets do indeed appear to be slowing down, but lack of wage growth is not a factor for luxury buyers. In fact, the ten-year bull market created $18 trillion in wealth since the Standard & Poor’s 500 bottomed on March 9, 2009. Despite these record-setting gains in the stock market and net worth, the luxury buyer north of NYC is defined by a cautious and restrained approach to real estate. They are reminded that real estate can decline in value, and the fear of overpaying is a primary concern. Luxury rentals have increased since last year and offer an easy wait-and-see solution. The pursuit of value drives the purchase decisions of today’s buyer. They want a fair price that can be justified by comparable sales, and confidence in the property’s marketability should the need to sell arise. A surplus of luxury inventory justifies their caution: At the close of the third quarter, there were 467 luxury homes ($2M and higher) for sale in Westchester County and 57 homes in contract. Motivated sellers are paying attention to the importance of pricing and its out sized ability to attract the attention of buyers with a value-driven offering. Sellers who priced their homes ambitiously are reducing or withdrawing them from the market.

To view the complete summary and the full report CLICK HERE.

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Houlihan Lawrence’s Marketing Advantage

HL’s marketing objectives are focused on driving inquiries for your property. HL refines its marketing tactics every month by using proprietary sales data to power advertising. By participating in nearly half the homes sales in Rye, HL has substantial amounts of real time data to inform their advertising strategy.

31% of recent home sales were buyers relocating from Manhattan and Brooklyn. HL uses the proprietary information from those transactions to target specific zip-codes through online and print advertising.

For questions or more information how this can benefit you, when selling your home, please feel free to email Joan at jomeara@houlihanlawrence.com.

 

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