Almost anyone with a pulse and half a brain can get a real estate license:

This was something of a shock to me.   I came from a field that garnered a great deal of respect, but it took YEARS of post-graduate education to be  considered a professional.  Yet, in just 8 weeks – attending class twice a week – I was licensed to help the public purchase or sell what is generally their biggest financial asset. Does anyone see a disconnect here?

The result has been a cadre of agents  – some with significant business – that appear to have nearly nothing between the ears.  This is simply because the process is not selective.   Many agents  have indeed applied themselves to the process and have acquired a great deal of knowledge through their licensing classes, CE classes and designations – as well as on-the-job.   The trouble is, since almost everyone passes, how is the consumer able to  evaluate these agents.

Consumers are treated like shark chum:

If its easy to get started, why not try it? And thousands upon thousands of people do  just that every year.  If you can’t throw a rock without hitting an agent then there are simply waaaay too many agents for the amount of business available.  Since agents are only paid when a transaction closes, that creates fierce competition for every qualified buyer or seller.

Desperation is a powerful motivator and it will induce many agents to do or say literally anything to secure the buyer or the listing.   I always refer to the monthly list of expired listings as the “feeding frenzy.”   There are agents that are all over hundreds of  homeowners a month like a bad rash.

When buyers walk into open houses they often feel as though they are under assault by an army of agents all of them trying to convince buyers that they are the only buyers agent for them.

If agents have any doubts about how the buyers and sellers feel about the predatory behavior – the videos below pretty much sum up public sentiment:

Who benefits from all of this? 

Does this in any way benefit the consumer?  In a word, no!  Although it gives buyers and sellers lots of choices, with no obvious means of discrimination, it turns the selection process into nothing more than a crap shoot.  Meanwhile, agents pile on board plying any seller that will listen with their saying their “guru marketing package” that they promise will garner more than market value for their home.  Its absolute nonsense – and when it doesn’t work as advertised it feeds into the seething level of mistrust and anger.  No agent can beat the market because we don’t control the market. We can only respond to the realities of the market and get for our sellers the best price the market will bear.

Smoke and mirrors make navigating this minefield nearly impossible for consumers…

How on earth does the consumer know who to trust?  Many resort to the lowest common denominator.  Sales volume.  Buyers and sellers look to the agent with the most signs in the ground or the largest sales volume. Or some move to their favorite “trusted sites such as Trulia and Zillow and give a shout out to one of their “preferred” neighborhood “experts.” The trouble with each of these methods is that they don’t tell you much of anything.

Many top producers are excellent. However, some are not.  How did they get there?  Many got there through their own merit and built their businesses brick by brick.  Others not so much.   Ethically challenged agents come in the form of low, medium and even top producers.  If you have a name, they will have sales.  But how did they come by that production?  If the successes are hiding a carnage of cancelled and expired listings, then where does that leave the seller?

Trulia and Zillow? Forget about it.  Consumers mistakenly trust these sites.  Many seem to think that these “area experts” are carefully vetted and hand-picked for their competence and performance.  Ah…..no…. Agents PAY for those spots.  If your plastic is good, you have a license  and are willing to pay to play, then you too can be a preferred agent – even if you have never sold a home in that area.

Then there is the banking industry….

Don’t get me even started here.  Between the liar loans, the repackaged mortgages for whom the notes are missing, the unwillingness to proceed with short sales or loan modifications – it is small wonder that home buyers and sellers have had their sense of trust shaken to the core.

My point here is that the real estate industry has come by the public contempt the old -fashioned way…we have earned it.  The question is whether the industry has a whole is committed enough to make the changes necessary to restore the public trust.  I’m sorry to say  that I’m not holding my breath.

© 2012 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Now, If you bought at the height  of the boom, chances are you are hurting right now and would firmly believe  that anyone who would suggest that you go out there and buy real estate needs a lobotomy.

However, if you are a thinking of buying a home in Westchester NY – and you have the means to purchase – then CONGRATULATIONS!   you have won the real estate lottery!

Real estate is on SALE right now….

Prices are down from about 20-35% across lower Westchester.  That’s a SALE folks!    If this were a BMW, some Jimmy Choo shoes, a new flat screen or an iPad,  you would have everyone crawling all over each other like a re-run of  Black Friday.    With the low interest rates that we now enjoy, affordability is at highs not seen in over a generation.  Further, much  of the lower Westchester housing market is flat or increasing in price.  Pockets that are declining are pretty much bouncing along the bottom.  The big dramatic  downward moves  have morphed into very slow, slight declines, flat lines or a gentle increases.   The market is flat – not tanking.

The rental roller-coaster & sky-high rents….

The recession of 2008 gave renters and newly dislocated homeowners a temporary reprieve.  Many weren’t aware of what a roller coaster renting can be financially, but they are now finding out.  The reprieve is OVER as demand has soared creating a rental “bubble” similar to the housing bubble.

Our market experienced double digit increases in rental rates this year and there is no end in site.  Its nasty out there.  Long – time renters are now being dislocated. Kids are being yanked out of school systems.  Adults face longer and longer commutes as the high rates push them further and further away from places they’ve called home for years.  I’m not sure of much but I’m pretty sure that the rental situation will only get uglier.  To see how difficult this has become in some areas read the NYTimes article “In apartment hunt, looking isn’t free”.    It describes the situation in San Francisco – but it is not far from the reality in New York.

Purchasing does one thing renting can’t do. It stabilizes your outlay.  Certainly taxes will increase as will maintenance fees if you live in a condo or coop.  But, the biggest bite which is generally your mortgage, is stabilized to TODAY’S ABSURDLY-LOW interest rates.

Buy Low: Sell High!

If you follow the crowd you are unlikely to make significant gains.  Housing can be a bit like the stock market. .   When the main topic of conversation at every cocktail party becomes “How much did you make in the housing market this year?” and people are snapping up real estate like they are playing a game of Monopoly,  you should be running the other way.   But when housing is beaten to a pulp and people are talking about how “chic” it is to rent – that’s when getting into the game is a good idea.   Sadly, it is human nature to do just the opposite.   Greed drives us in at the wrong time and fear keeps us out at the right time.

Trying to catch “the bottom” of the market ensures that you will never catch it:

Until they invent  time machines, you will never know where the bottom of a market is until we are well past it.  By that time the market has morphed into a bull and the advantages of buying into a bear market are gone.    The best you can do is buy after a significant correction – or when housing is “on sale”.  If you catch the 20% off sale but miss the 25% off sale are you really losing out?  Not likely.  Eventually the market will recover and buying at 20% down is better than buying at 10% up because you waited too long to pull the trigger.

For example, the people who bought during the tax credit did not catch the bottom.  But, in my opinion, most of them did not “lose out”.  The bought after the big knife had fallen.  The declines since then (with the exception of a couple of niche markets) have not been compelling.  They caught the 20% sale, but missed the 25% sale.  However,  no one in that group was trying to “flip” a property.  They were in it for the long haul.  Further, they got an  $8000 tax credit to boot.  By the time these buyers sell – the market will have come back and they will have made a profit.   For a while it looked like that was the bottom!!!

Waiting is  gambling:

It always  seems that by waiting, we are not taking a chance…it just seems “safer.” But it isn’t.

Do you think prices will never go up?  Do you truly believe that  ridiculously low interest rates are here to stay?   Both will eventually move up – and affordability will go down.   People who are fence-sitting are gambling that both of the above factors will continue to move in their favor.  At this point that’s a pretty big risk.  The longer the downturn, the bigger the probability that buyers will miss the train.

There is one overriding upward pressure on housing prices already in the mix.  The sky-high rents are going to push qualified buyers into  purchasing sooner rather than later.   That will shift demand and prices will rise.   Its only a question of when not if.

“You’e got to be in it to win it!”

The question that I have been having for a flock of buyers who have been turning their noses up at what are truly incredible deals – is:  What are you waiting for?   The it’s chic to rent is soooooo 2008.   Right now you seem to be waiting until everyone is in a buying frenzy.   But the winning ticket is in the here and now.    It doesn’t get much better than this.  You have the opportunity to win the real estate lottery – but  you still have to be in it to win it!

© 2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

As White Plains NY condos go, Jefferson Place offers a great deal in the way of amenities for the money. The Residences of Jefferson Place is a condominium complex with a split personality. The complex spans on square block between Livingston Ave. and Rutherford Ave. in White Plains, NY with units on 300 Mamaroneck Ave. and 31 Greenridge Ave. Jefferson Place is located a scant half -mile from heart of the downtown including the  White Plains City Center.  The city side – facing Mamaroneck Ave. is an eight-story urban mid-rise with a sophisticated brick façade.  The suburban side of the complex on Greenridge Ave. gives a bow to the Highlands community where it resides.

The following is an update of the sales stats at Jefferson Place.  Prices have come down nicely over the past few years and for those interested in buying, I would strongly suggest that you get moving.  The gift of  super-low interest rates can not last forever and combined with the prices that we now see, this is a gift.  If you qualify to buy – I have to ask what an EARTH are you waiting for???? Housing is highly cyclic.  Those who miss out on this crazy low market will be kicking themselves for years to come.  This is  literally a once in a lifetime opportunity in the housing market.

Jefferson Place – White Plains – Sales History – 2006 – Nov 2011*

The chart below follow median  sales prices of 1 BR and 2 BR units at the 300 Mamaroneck Ave., the  midrise portion of Jefferson place from 2006-Nov 2011.  From the charts below you can see that 1 BR units underwent two corrections.  Once at the beginning of 2009 following the market meltdown.  They then climbed up a notch once again only to fall substantially to a median price of $317,000 down about 18% from their peak in 2008.  2 BR units corrected more sharply in 2009 and have remained flat since 2009 going up slightly, but not significantly to a median price of $445,000 in 2011.  Actual pricing depends on many variables including square footage, view and location in the building.  Upper floors traditionally selling for more. * All data was derived from the Westchester Putnam MLS.

The active listings indicate that there is about 1 year of inventory on the MLS so these units though bottoming are still in bear market territory for both 1 & 2 BR units.  Sellers need to be realistic, but buyers shouldn’t overplay their hand either.  2 BR units appear to be bouncing along the bottom  and so much air has come out of the 1 BR units price points that it is doubtful that there is much more room for decline. Sales of 1 BR units have been steady in spite of the price drop.

Further Reading:

Jefferson Place – White Plains NY

For the Latest Information On Sales and listings at Jefferson Place:

For the latest on sales stats and current listings  -  feel free to contact  me by phone – (914-374-5529) or email – (Ruthmarie.Hicks@gmail.com) or  you can simply fill out the form below – whichever method you prefer.  Don’t worry  – I do not sell, spam, or otherwise abuse your information!

© 2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

The coop that I have listed is a very large 1 BR unit with a large bathroom and separate shower (unique for a pre-war building) It has high ceilings, wonderful moldings.  The layout is nothing short of ideal.  It is newly painted, the plaster has been repaired, the floors totally refinished and it sports a brand new bath.   Great closet space wonderful views….but….but…its got a very dated kitchen.   There are several other 1 BR units in the building and some of them have renovated kitchens and baths – while the listing I have has only a renovated bath.

For many first-time buyers – its all about bright and shiny things:

The bulk of buyers in the market for a 1 BR cooperative near the train station are first timers.  These buyers are making a beeline for the units where everything is new, new, NEW!!!  They want to be blown away and they certainly don’t want to lift a  finger to deal with a kitchen or even painting in some cases.   In my opinion, this is a mistake. Since everything else in the unit is up to snuff – I find this difficult to understand.  The unit as it sits has better views, a better layout, better closet space, an eat-in kitchen (which most of the others don’t)  and significantly more square footage.  Yet people are willing to pay a premium for a smaller unit with less closet space as long as its all tricked out.

Although I understand that renovating a kitchen is a pretty big deal, and for  some people it is out of the question,  what I’m not getting is why no one is willing to put in one iota of elbow grease into as large of a purchase as a home -  particularly in this economy.  Elbow grease is  instant equity.  Its certainly way better than paying more for  a home (or coop) with less square footage, poor layout and an inferior location just to get a nice kitchen.   When you pay a premium  for that type of home or unit just because it has a shiny new kitchen  and ignore other factors  you are leaving money on the table.   After all – a dated  kitchen CAN be changed.  Just ask any contractor – they do it every day.   But the location, square footage and layout are forever.

Cake & ice cream vs. meat and potatoes:

Issues like layout, square footage and location (or in the case of a condo or coop – the nature of the building)  put a permanent ceiling on what you could ever hope to make when the time comes to sell the home.  These issues are the meat and potatoes of real estate and the smart money knows that these issues should be first and foremost.

A new kitchen is the cake and ice cream – or really its the cherry on top of the sundae.  It is nice to have but shouldn’t be the be-all and end-all of a transaction.  The same goes for tumbled marble in the bathroom and master bath suites for those who are just starting out.  Your first home is not going to be your last home.  It is the first step in a process that will lead to the home of your dreams.  Although you should really love your first house….it should be for the right reasons.  Buyers who go after bright and shiny things pay a premium and often shoot themselves in the foot when it comes to resale.   Accepting  a home that is  solid in the meat and potatoes department but may need some help in the cake and ice cream area is money in the bank. Because in the end, doing so allows you to  have your cake and eat it.

© 2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Real estate agents that expand their territories generally  have more transactions under their belts:

When you think about it,  each model has  its own set of benefits and red flags for the consumer.  In this slow market an agent that covers a lot of ground has more closings under their belt and is used to dealing with everything that that could possibly be thrown at them.  These days,  transactions are fraught with peril from the negotiating the price and terms, to dealing with lenders and the bank in the event of a short sale.  Agents that have stayed very local and are doing fewer deals have less experience with this market.  Bottom line, unless a very, very local agent is in the top 1-2%  in terms of sales volume – they are NOT closing a significant number of transactions these days.   Truth be told, even top producers in this market are having a very tough time making ends meet.  If an agent in this situation is NOT trying to expand their territory, then I would be concerned that they aren’t truly professional and are actually “doing” real estate as a sideline.

Agents who focus locally generally have more local knowledge and better insight into specific neighborhoods:

The statement above  is the flip side of the coin.  This  may seem obvious to some,  but in a world of Zillow and Trulia  the public doesn’t always see it that way.  This is particularly true of young people.  Be warned if you think “just anyone will do” even if they live 50 miles away.   The public needs to rethink how much Trulia, Zillow and all of the other so called national “real estate portals” can possibly know about a particular area.   The fact is that both of these portals are so far off the mark with respect to their “zestimates” or “guesstimates” that it is truly pathetic.  Further, many of the so-called local experts featured on this site know nothing about the area in question.  Most are paying big bucks to these portals to try to put themselves out there as an area specialist.  But the ability to flex the plastic does not a local expert make.  It does take “boots on the ground” to determine value.  Real estate IS a local business.   Its  a question of HOW local.

Further, not knowing the details of an area intimately  can be a big problem.  What about that nice golf course that abuts the property?  If the agent doesn’t know that the property was recently sold to a developer who is trying to build a huge school on what was bucolic open space – it can mean their buyer will overpay and not get what they thought they were getting.  Instead of peace and quiet – they could find themselves with a playground or ball field literally in their back yard.   (This is actually happening in one neighborhood that I cover.)  Will an agent covering several counties have enough knowledge of a very local neighborhood to KNOW that type of detailed information?  Probably not.  Those who are expanding beyond their ability to drink in the local issues including zoning disputes  may find themselves without sufficient knowledge to properly represent the interests of their clients.

Personally – I’m suspicious of both extremes – and have plotted a course straight down the middle:

An agent that is spread too thin can have difficulty managing their inventory (if they are listing agents) and may not have enough specific knowledge of an area to guide their buyers.  This can have serious consequences if they are unaware of plans to build a major highway through an area, or of a builders plans to build track housing in what is currently an exclusive and quite area.  If an agent is marketing large quantities of listings over a wide geography – how much can they “put into”  a given listing?  Having the ability to focus advertising to a relatively narrow geographic range has benefits – particularly online.   Some are throwing stuff up against a wall and whatever sticks, sticks.  That’s fine for the agent, but what about the client?

On the other hand, agents who chronically harp on being “local experts” have often used and abused that statement and beaten it to a pulp because they really don’t have that much else to offer.  Some are trying to keep competition OUT so they can have the lions share of what may be one of the more lucrative pockets in the immediate area.  Since sales are on the rocks in some locations and doing well  in others – the pockets with decent volume will find themselves under increasing pressure from area agents a town or two away who will want and need to partake in part of the action of an active area.   The bottom line for the consumer is whether or not that “local agent” is truly offering “more”.  If they keep harping on the “local expert” mantra over and over again – there may not be that much “out-of-the-box” thinking going on.   To my mind – the competition is a good thing as sellers and buyers alike should have more options than one or two main brokerages that offer the same-old, same-old because they haven’t been pushed to do more.

For me – it was a matter of survival.  My area has had very little movement and even the tippy top of the top producers are breaking into new territory.  I’ve done so in a deliberate and viable way that offers sellers an alternative with some out of the box ideas  and buyers one-stop shopping if they are examining more than one municipality.  I certainly don’t cover 10 counties, but I do cover several towns, villages and cities.

For the latest on sales stats and current listings  -  feel free to contact  me by phone – (914-374-5529) or email – (Ruthmarie.Hicks@gmail.com) or  you can simply fill out the form below – whichever method you prefer.  Don’t worry  – I do not sell, spam, or otherwise abuse your information!

© 2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Condo and townhouse prices remained stubbornly high – until now….

One of the biggest impediments to downsizing has been the cost.  Single family homes corrected first.  So home sellers who had shrinking home values were making either a lateral move or a move UP to one of those great condos or townhouses they had their eye on.  For several years, these properties stubbornly held tight to their high price points while single family homes tumbled.   This left would be sellers  “stuck.”  Sluggish sales showed us that this state of affairs couldn’t last.  Prices needed to come down – and over the past 18 months – that is just what has happened.   The new affordability will help those with depreciated home values better afford these options. Those fortunate enough to live in areas such as Scarsdale and Larchmont where home values are increasing – have a unique opportunity to sell high (though not as high as 2006) and buy low. Opportunities like that are rare in the housing industry.  So those who have been waitin’ and wishin’ and hopin’ for a better opportunity – now’s the time to think seriously about downsizing.

Here are some great luxury options in White Plains for downsizing:

The Ritz Carlton White Plains NY…*

Prices at the Ritz Carlton peaked in 2008 but went down sharply after that.   Now the prices are actually edging back up with a median price so far this year of $942,000 – down about 38% from the peak according to the Westchester-Putnam MLS.  Of course you get high end luxury and services galore right in the middle of downtown White Plains.  For more information click here for a  web page on the Ritz Carlton.  For those who want convenience and luxury – this is a great choice.

Trump Tower White Plains NY….*

Trump Tower is another luxury high-rise in the heart of the downtown.  Located right next to the City Center – it is at the heart of everything. Just leave the car and walk.  Prices have come way down off their heights with a median price of $645,000 so far this year – well off their $800,000 highs of the previous year.  For more information about Trump Tower click here for a web page about Trump White Plains.

Suburban Townhouses in Southern White Plains…*

For those who still want the feel of a house or who may have some boomerang kids coming back to the nest after college, a townhouse offers the convenience of condo life but the layout of a home.  Just imagine – having a house with no snow to clear, now flower beds to weed and no gutters to clean!  Prices on townhouses have been adjusting over the past year and are down close to 19% from their peak with a current median price of $780,000.

*Note about the charts:  The red bars represent the period before the market correction.  Note that the correction came at different times for townhouses  – which is a natural part of the process.  The green bars represent the years since the correction and the orange bar represents the current year.   All  data was compiled from the WPMLS – Please note that the townhouses include single family home and condo listings.

© 2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Tighter lending standards play a role…

Part of this angst  is due to tighter lending standards which means that relatively solvent families have to squeeze into less home than the more relaxed standards of the past would allow.  We got used to those loose standards and being allowed to buy a large house seemed like a right, not a privilege.

Confusing inflated expectations with an overpriced market…

Recently, I think would-be buyers are confusing not getting everything they want  with the notion that the market is still overpriced. Listen up buyers….I know you are disappointed, but  Westchester NY is EXPENSIVE.  This has nothing to do with a market that isn’t full corrected.  It has always been this way.  If you want to live roughly 30 minutes from midtown Manhattan you will pay for the privilege.  This is nothing new and has held for bull and bear markets alike.  Affordability hasn’t been this favorable in nearly 50 years – since before even I was born.  If you are disappointed now about what you can afford, realize that it is not likely to improve and it could be much worse.  Wait until interest rates rise 1%.   A 1% increase in interest rates corresponds to a 10% loss in buying power.   So waiting can make you lose considerable buying power.

Taking baby steps to your ultimate goal….

Back in the dark ages of my parents time – and even my earlier days – we bought less house initially and moved up later.  We understood that you had to take baby steps to that big house.   You have to start somewhere.  If you are a 20-something you may have to forego that second bedroom or those granite counters and tumbled marble baths.  Perhaps you can have an extra bedroom if you buy something that needs a little elbow grease.  For buyers of larger single family homes, you may have to go to a neighboring town that isn’t  a “name” town or it means you have to buy a fixer or a smaller home.   Maybe it means accepting a home on a busier street or further from the center of town. At the end of the day, the buyer has to prioritize and most will have to sacrifice something they would really love to have.

But the bottom line is that that kind of give and take is the normal part of the purchasing process. It has nothing to do with an overpriced market.  In fact some sectors of our market are going up in price while others are bouncing along the bottom.  At this point buyers should be more concerned with factors that could decrease their buying power in the future than the notion that the housing market is still overheated.

© 2011 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

So – if you think that somehow you are saving money by renting – take a look at these numbers on a $210k listing:

• Let’s say you take out a standard loan of $190,000.
• At 4.2% interest – your monthly payment is $880/month
• In my example your taxes and maintenance combined is $779/month.
• Your total GROSS outlay is $1659/ month.
• A comparable rental ranges from $1800-1900 a month.

Even without calculating tax deductions – a buyer is saving $141-$241 a month or ($1692 to $2892 a year)

We didn’t even factor in the tax advantages and amortization…

The savings don’t end there because  There is more – much more.

Mortgage interest deduction and property tax deductions  combine to save the buyer an additional  $284 a month in my example.  (I am assuming the 28% marginal rate on this).

This bring the net outlay to $1375 a month.  
That’s a savings of $ $425-525 a month in savings…or…cha, cha, cha, ching…$5100-$6300 a year.

But we are not finished yet…what about amortization…the amount of money that a home owner pays to pay down the principal owed on the loan?   …In this scenario that is about $3061 a year.

So a buyer is roughly $8161 to $9361 ahead of a renter over the course of a year.
This is not exactly chump change.  Who wouldn’t want to save that kind of money? So   I have to ask buyers who sit endlessly on the fence: what on earth are you waiting for?

The only person getting rich if you rent is your Landlord!

© 2011 – Ruthmarire G. Hicks – http://thewestchesterview.com – All rights reserved.

Gambling on lower prices and lower interest rates….

People think that if they haven’t made a decision to buy that no decisions were made.  That makes them feel “safe”.  NOT TRUE.  The buyer made a decision and that decision was to punt.   So in reality, the buyer is rolling the dice that the market will decline more or at least not improve.   They are also gambling that interest rates will remain at record lows.  As one famous blogger (Lenn Harley) puts it to her buyer clients “The market will bottom six months before you decide its time to buy a home.”

Looking for local real estate  trends…

All real estate is local.  National numbers are next to useless in determining where any one local market is going.  One way to peek behind the curtain and try to glean what is going on in the location of interest.  Another tactic is to look at surrounding communities  that influence real estate values in the area of interest.

White Plains Single Family Homes..

The chart below is of median prices over the past several years.  The big knife fell in 2009 when prices dropped 12%.  They were bolstered a bit in 2010.  So far in 2011 the trend has been down – however – that 7% is skewed somewhat by the type of housing that sold.   In 2010 – roughly 7% was at the low end (entry) level  but  in 2011 15% of the sales were entry level… while 15 % were at the highest end of the market.   In 2010  the higher end accounted for over 20% of the sales.    From my gleaning of  the MLS data, prices drifted down about 3-4%.  This indicates that price drops are slowing and you are bouncing along the bottom.

For all the charts – the red bars indicate prices before the market started to correct, the green bars are after the correction and the orange bar represents the current year. All data is derived from the EAMLS (Empire Access Multiple Listing Service).

Neighboring Markets Help set the trend….

The White Plains market is influenced by other neighboring markets in.   Manhattan   is key and  moving up in price and volume.  Mitchell Hall had an excellent Q3 report of that market.  In addition, markets in neighboring towns exert a major influence and can help us glean what is likely to lie ahead for White Plains.   Markets such as Scarsdale, Mamaroneck and Larchmont tend to be resilient. .  People want to live there and when prices go down – those that couldn’t otherwise afford these areas rush in to buy while the prices are affordable.

As you can see from the charts below – these markets are on their way back up.  They were a bargain in 2009 – but not so much anymore.  White Plains is where many buyers go when these areas become less affordable. White Plains is  a great alternative with housing prices that are generally lower and taxes that are more affordable than the likes of Scarsdale and Mamaroneck or Larchmont.   With prices heading higher in the surrounding areas – these areas are rapidly becoming less affordable.   But White Plains is STILL on sale…at least for the time being.   Given where these other markets have been heading -  White Plains is likely poised for a strong recovery in the foreseeable future.

So you can make a decision not to make a decision and wait (as Lenn Harley says)  until  “six months after the market hits the bottom” in order to buy.  Of course that ensures that you will miss the bottom of the market and many of the advantages of a buyers market.  So you see, staying on the fence is not necessarily “safe”.

©2011 – Ruthmarie G. Hicks – http://thewestchesterview.com

In the midst of a national housing crisis many would-be sellers are sitting on the fence asking whether now is a good time to scale back into something smaller.  This is particularly true of empty nesters or soon-to-be empty nesters.  With real estate – as with all large ticket items  – it is best to buy low and sell high.

Of course the devil is in the details.  If someone is looking to scale-up or scale-back they usually end up on the losing end of one transaction and the winning end of the other.  So it is small wonder that many would-be sellers are stalled in this market, afraid to put their toe in the water.

Larchmont  single- family homeowners have enjoyed steady appreciation since the crash of 2008…

But in Larchmont NY – there is a unique opportunity for sellers who wish to stay local by downsizing into the Larchmont condo or coop market.  In this unique time Larchmont homes have enjoyed brisk appreciation since the 2008 crash. A home seller in Larchmont may not be able to get what they got at the peak of the market – but some of the prices are very, very bullish.  Median sales price for the 10538 zip code was $1,068,000 in Q3 of 2011 up about 6% from the previous year.  Just look at the sales data from the MLS for homes in Larchmont Village and the Larchmont P.O.  Prices are recovering nicely.  Just look at the pricing history from 2006 to the end of September 2011…The red bars represent years before the crash and the green bars represent the years following the crash.  The current year is in purple:  There are two charts below.  The Larchmont P.O. (10538) and Larchmont Village.

The Larchmont condo and coop market has continued to languish in spite of robust sales in single family homes…

But just as important are the drops for cooperatives.  1 and 2 BR coops have really struggled over the past year.  This market is still a buyers market.  Just look at the sales price history. It’s hard to believe this is in the same location.   The condo market is similar -but too small to offer up reliable statistics.   Once again, the red bars represent years before the crash and the green bars represent the years following the crash.  The current year is in purple.

Buy low and sell high….

So right now there is a rare win-win opportunity for home owners who would like to exchange their large single family home for something more manageable.   Its hard to determine just how long this type of a trend will last, but  if you are thinking that the house is just a bit much to keep up and that it is time to think seriously about scaling back  – this is truly a unique and rare opportunity to create a win-win on both sides of the buying/selling equation.

If you are thinking about making a change, I can help by giving you a reliable and free market analysis of your home while showing you what your money can buy on the purchasing side.  I also offer a discounted commission on those who choose to complete  both transactions through me.

You can contact me by phone – (914) 374-5529 or by email Ruthmarie.Hicks@gmail.com. Or you can simply fill out the form below.

 

© 2011 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.