Archive for the 'White Plains' Category
There is an old saying that there are only two things you can count on in life – death and taxes. Apparently homeowners in Westchester now have a third thing they can count on – exponentially increasing property taxes. Homeowners in New York are up in arms over property taxes. For those who don’t know the region, New Yorkers enjoy just about the highest property tax rate in the country. Westchester has some of the highest taxes in the state – so you get the picture…..In many areas of Westchester, the taxes actually exceed assessed values.
White Plains NY is a case in point. Taxes have been marching to new heights each year. Year after year, the city, schools and county come with their hands out expecting homeowners already reeling from the worst recession since the Great Depression to fork over more in property taxes. Many are hanging onto their homes by their fingernails. And as more and more homeowners feel the squeeze – many will find they can no longer afford to stay in a community that just a few short years ago was quite reasonable and affordable.
Traditionally, White Plains enjoyed significantly lower property taxes then the rest of the county thanks mostly to our large commercial and retail base. But even though that base has increased, the number successful certioari actions has also increased. The net result has been a shrinking tax base in the commercial/retail sector pushing the lions share of the burden onto homeowners. Most notably: owners of single family homes.
Homeowners and city officials in White Plains need look no further than Sleepy Hollow to see what happens to home prices when the homeowners are saddled with an ever more onerous tax burden. This burgeoning problem needs to be nipped in the bud or home values could well suffer.
I chose Sleepy Hollow for a comparison because it is an analogous community in many ways to White Plains. Although city officials and union leaders prefer to liken White Plains to Scarsdale and Larchmont where high taxes are better tolerated, our community profile is in truth more like that of Sleepy Hollow. The commute to Manhattan is similar the two neighborhoods I chose to focus in are are quite comparable in terms of home size, amenities and lifestyle.
Gedney Farms is an established upscale neighborhood in White Plains. Over the past ear the average sales price in Gedney was $993,000 – just shy of $1 million dollars. The average tax bite in these sold home was slightly more than $16,000 per year.
Philipse Manor in Sleepy Hollow is quite similar in many ways to Gedney Farms. However, Sleepy Hollow is a village with relatively little commercial activity resulting in a higher tax burden on the homeowner. Over the past year the average sales price in Philipse Manor was $847,000 – a significant 15% drop from the prices enjoyed by Gedney residents. That’s a difference of $147,000 – not exactly chump change. When you look at the tax bite that Sleepy Hollow extracts from Manor residents, one can see why. Its enough to make your head spin. The average tax on the homes sold that year was a crushing $22,500 or 29% higher than what is seen in White Plains.
Does the tax rate account for the price difference? Uh….ya think? Think of it this way….taxes that high are like another mortgage payment. For Gedney residents its about $1333.00 a month, but that goes up almost $550 a month for Sleepy Hollow residents. Assuming a 6% mortgage rate (assuming they have enough cash to not need a jumbo loan) that translates to a drop of over $90,000 in buying power. If you don’t believe me – the charts below tell the story.
City, county and school officials take note. I know you have turned a deaf ear to the voters on this issue for many a year. Your special interest groups have drowned out the silent majority. But now you are looking off the cliff and into the abyss. Single-family home values could easily implode. Here is the scenario that I fear the most.
Raising the taxes the proposed 19% will make homes in surrounding areas such as Scarsdale, Larchmont, & Rye – more attractive to buyers. Many single family home buyers preferred these areas over White Plains, but high home values put them out of reach. Now that home prices have declined and taxes in White Plains have risen, the trend has been towards these higher-end areas and away from White Plains. Fewer buyers means lower prices.
As taxes rise, those who were hoping to retire (or simply age) “in place” will realize that this is no longer possible. The increase in taxes will be just that extra shove off the cliff that will force many homeowner’s hands. They will have to sell in a bad market. This will push additional inventory onto an already weak market. More homes for sale = more downward pressure on home values.
Further, as home values decline, more homeowners will be able to successfully grieve their taxes. Thereby further eroding the tax base. And the merry-go-round keeps going round and round.
In the past, home owners were just giant money cows to be squeezed to the heart’s content of public officials, educators and unions. But declining home prices translates into lower property values and lower assessed values – and that should put the fear of God into you. The message is loud and clear! Keep hiking taxes and you erode home values AND your tax base.
Further Reading:
Certioraris a Taxing Situation for New York Homeowners
© 2010 Ruthmarie Hicks, http://thewestchesterview.com. All rights reserved.
Westchester NY real estate has been heavily impacted by the financial storm of 2008. In some areas, the storm continues to brew and in other areas – there seems to be light at the end of the tunnel. White Plains NY homes are no exception to the rule. Last year saw a marked decline in the prices for single family White Plains NY homes for sale. Although there were significant declines in the condo an cooperative markets, these did not match what happened to single family homes. Sales volume was sluggish in spite of a strong buyer’s market.
The first quarter of 2010 the single family home market, is showing signs of strength. While the condo and cooperative markets appear to be showing signs of greater weakness.
Cooperatives – White Plains NY:
The average sales price of a coop in White Plains is down 16.4% over the 4th quarter of 2009 at $184,000. There were 29 sales recorded on the WPMLS in Q1 and the current inventory has 172 listings. Using these numbers there is nearly an 18 month inventory on the market – indicating significant weakness and a depreciating market. Contracts and pendings are encouraging – but assuming all of these contracts end in a sale – which never happens - there is still a near 10 month overhang of inventory. The bright spot in the market is that sales volume is a good deal higher – up 45% over last year when the markets were virtually frozen.
This is a market that represents opportunity for buyers and requires sellers to be very realistic. The pricing a the Broadlawn reflects this trend that is being seen throughout the White Plains market.
Condos – White Plains NY:
The average price of a condo in White Plains NY has gone down 14.8% from the first quarter of 2009. The average price of a condo in White Plains fell form $460,000 to $392,000. 23 sales were recorded on the WPMLS during the first quarter with an overhanging inventory of 161. That leaves a nasty 21 months of inventory on the market making this a strong buyer’s market. However contracts and pendings make this picture look a lot brighter and indicate an 8 month inventory. The reality probably lies somewhere in the middle of these two numbers. But either way, buyers have a strong upper hand. As with coops the volume of sales for Condos in White Plains is up 43% from Q1 2009.
The price range is interesting to note: In 2009 the high end of the market was not moving at all – this has changed. The price range according to the MLS ranged from $135,000 for a small studio to $1,220,000 at the Ritz Carlton.
Single Family Homes – White Plains NY:
Surprisingly – single family homes saw a price increase of 8.2% with the average sales price coming in at $643,000. The number of sales closed on the WPMLS was 39 – an increase of 34% from the totally stagnant market of Q1 2009. Although encouraging, a closer look indicates no true price increase. What we appear to have here is resurgence of sales at the upper end – skewing the data higher. This follows the pattern in the condo market. The number of months of inventory on the market 11 months if you look at closed sales, and 7 months if you look contracts and pendings.
This is a market that is showing a bit more strength than some other markets. It is still very much a buyer’s market. But the steep dip in prices that was 2009 has created a more healthy market in its wake.
Further Reading:
Jefferson Place – White Plains
© Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.
This has been a most unusual spring. It’s been up to 80 and down to 30 degrees all within the space of a day or two. We had a “hurricane without a name” that caused untold damage. But over the past few days we have had the most brilliant and colorful blossoms against a background of dark cloud cover. The light filters through the dark clouds creating an eerie and often surreal effect. The bright spring greens and pink blossoms against the gray sky is haunting. I finally had my camera on me. These photos were taken in White Plains NY on Mamaroneck Ave – on the outskirts of Gedney Farms. Years ago, White Plains Beautification planted cherry trees along the median of the main road in White Plains. These trees extend from the Southern tip of White Plains to the beginning of the downtown area where the median disappears. The result is a very colorful entry point to the city for a few weeks each year. Enjoy the pictures. I’ll be taking more!
© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.
White Plains is a wonderful city. A great place to live and work. However, over the past few years, White Plains has had its problems. That includes a fiscal crisis that has been brewing for years. Moody’s had warned the powers that be that our bond rating was in jeopardy because we were too dependent on our sales tax receipts to sustain our expenses. We only needed a small recession to send us over the edge.
So what did we get? We got the worst recession since the Great Depression. Since much so much of the revenue flowing into the city was retail -based, the finances White Plains haven’t slipped over the edge – they’ve been driven off a cliff.
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The power restoration process is slowly progressing. Five days after the storm there are still over 7000 county residents without power as of this morning. Greenburgh town supervisor, Paul Feiner, will be writing the Public Service Commission asking them to investigate the methodology Con Ed used to commit de-energizing and restoration crews. NYC appeared to be first in line for help while it was obvious that the lions share of the damage was in Westchester County.
Personally, I was out of power for about 72 hours and the damage to my own property was consderable even though I had had the foresight to have a couple of vulnerable trees removed prior to the storm. Several people I know were dependent on sump pumps to keep their basements dry. When the power went off – so did the sump pumps and the resulting damage was severe.
Here are a few photos taken from my iPhone yesterday. The are pictures taken in the Prospect Park neighborhood and on Soundview Ave. in White Plains – an area that was severely impacted. As you can see, the trees came up by the roots. The same is true for a very large tree that I lost on my front yard. The ground was already so saturated with water the trees were just pulled out by the roots.
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Early Saturday evening, much of Westchester NY was plunged into darkness by a major storm. The storm was severe enough for me to cancel my last appointment. It was nothing short of treacherous on the road. I made it home safely and counted my blessings. Then suddenly – ZAP!!! All the lights went as well as the heat (which is triggered electrically) As the storm raged on I heard an ominous THUD in the front yard. A tree that I had had scheduled to be removed this next week had decided to beat its executioner to the punch and came down across my front lawn. I was very fortunate that it didn’t hit my house.
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People often ask me about fine dining in Westchester NY. The New York City dining experience has been finding its way northward to Westchester County. This might be news to Manhattanites – for whom Westchester has always seemed to be some sort of backwater destination. White Plains restaurants boast several transplants from Manhattan. Downtown White Plains is a location where high-end shopping and entertainment are the order of the day. Now, there truly can only be one Manhattan – but White Plains and other destinations in Westchester can no longer be considered truly suburban. Westchester is a mix of suburban life with NYC amenities.
To that end, one of Manhattan’s most distinctive dining attractions, Via Quadronno, opened its doors in White Plains at the corner of Renaissance Square and Main Street – next door to the two 42 story towers that are the Ritz Carlton. The location in the famous Art Nouveau Barr Building provides an interesting background standing next to the mirrored glass and sleek steel of the Ritz Carlton. That mix of old and new is very typical of the “new” White Plains.
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Gedney Farms White Plains NY:
When buyers are looking for high-end single family homes in White Plains NY – A home with plenty of green space and old-world charm – Gedney Farms is the first neighborhood that comes to mind. Gedney Farms was named after John Gedney who bought the land in 1740. Gedney Farms was a working farm that remained within the Gedney family right through the Civil War. It has long ceased to be farmland and is now a well established neighborhood.
Through much of the Gedney area the zoning is for no more than three homes per acre, so most lots have at least .33 acres of land which for lower Westchester is very difficult to find at a decent price. The roads are fairly narrow the wind around giving the feeling of country roads. No checkerboard streets here! This is also a plus because the streets are generally quiet as this discourages cut-through traffic that sometimes occurs in other parts of White Plains. The homes are a mix of Tudors and colonials many of them built during the Great Depression or before with a smaller percentage being built in the 50s and 60w. This is a mature neighborhood with very little buildable land remaining.
The Ridgeway Golf Course:
The Ridgeway golf course defines the neighborhood and depending on your location. It bisects the Gedney neighborhood in several places and many of the homes have spectacular golf course views. Some even have the fairways coming right into their back yards giving an illusion of almost endless open space. This type of amenity is difficult to match in lower Westchester and is a world away from the hustle and bustle of the City Center and the Ritz Carlton of downtown White Plains. Some homes have their back yards extending right into the fairways. It looks like open space as far as the eyes can see.
Unfortunately, at this time the fate of the Ridgeway golf club is not settled. Although the club has no wish to sell its land to developers, difficult financial times may force that issue. So far they have been holding on. Much of the area is wetlands, so the quantity of building would be quite limited. Nevertheless, the loss of such a vista would be a blow to the area. Everyone is hoping that this issue will resolve itself as the economy continues to improve.
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Buying a condo in White Plains NY can be very expensive. Cooperatives offer a viable alternative and financially stable complexes are great investments. But for those who own dogs, relatively few are pet-friendly. Here is one of the premier cooperative complexes of White Plains – and the best part is that its pet-friendly.
The Surrey Strathmore is a complex of six mid-rise buildings which surround a courtyard. This is perhaps one of the more upscale cooperatives in White Plains. Built in 1939, the complex boasts some of the graces of a by-gone era. The ceilings are 9 ft high, and graceful archways separate living room, dining room and kitchen areas. Each unit has at least one of the Surrey Starthmore’s signature curio nooks. The floor plan is excellent.
Located at the Southern end of White Plains, the Surrey Strathmore is located on Bryant Ave which almost acts as the “dividing line” between the Southern residential area from the Northern downtown. So, the Surrey Strathmore sits on the edge of the residential neighborhood, the Highlands where quiet walks on tree-lined streets are just a block away. Perfect for a walk with the dog. On the other side is the beginning of the downtown area within walking distance of the famous and upscale Westchester Mall, Whole Foods, Cheesecake Factory, Morton’s Steak House along with some favorite local restaurants including Iannelli’s. A bus taking commuters to the White Plains Train Station stops right at the corner of Bryant Ave and Old Mamaroneck Rd. – which is the Southwest corner of the complex.
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The housing market in White Plains has taken a drubbing since the stock market crash of 2008. Although some adjacent areas are showing small signs of stabilization, the same can not be said for the city of White Plains. This is ironic because White Plains was at the epicenter of the housing boom for Westchester County.
White Plains NY Cooperatives:
Cooperative prices were actually up slightly over the same period in 2008. However, this slight uptick might be do to an increase in the proportion of 2 BR units in the sales statistics. The previous quarter showed a grim 17% price reduction and recent sales in specific complexes indicates that this downward trend is continuing. Since 2 BR units are suddenly far more affordable, buyers are finding that they can afford a larger unit. Sales volume is down 17% over the previous year and the current inventory of 9 months indicates a buyer’s market undergoing a price correction bordering on double digits.
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