Scarsdale NY Single Family Homes  – Scarsdale Schools

The average price for Scarsdale homes for sale – saw an average price increase of about 14% to $1,437,000.  Although prices had not truly increased in such a dramatic way.  It points to health in the market because is shows that higher end homes are actually closing.  The banking crisis kept the larger homes out of the market place in Q1 of 2009.  So this increase reflects a broadening of the viable market and not a true price increase.  The price range of solds was far broader in 2010 than in Q1 of 2009.  Prices ranged from $558,000 to $3,625,000.

Looking at sold listings, the inventory on the market is considerable  over 15 months.  However, if you look at contracts and pendings – the picture is brighter with a little more than five months of inventory.  But that assumes that everything under contract will sell. The truth lies somewhere in between. This is still a buyer’s market – but it is definitely not a fire sale.

Edgemont Single Family Homes – Edgemont Schools – Scarsdale P.O.:

Average housing prices increased in Edgemont as did sales volume which was up 200%.  The average sales price at the end of the first quarter was $1,608,000 – up from $840,000 at the end of Q1 in 2009.  Interestingly, the price of lower end homes was static, but the price increase reflects the fact that higher end homes are now selling again.  For example the highest priced home that sold in Q1 of 2009 was $1.1 million. But in Q1 in 2010 the highest priced closing was $4.2 million.   So prices haven’t risen dramatically – but the price range closed sales has increased dramatically.   There is still considerable inventory on the market – so this is still very much a buyer’s market.  With respect to closed sales in Q1 there is a 15 month inventory.  But there are many contracts and pendings in the pipeline. If you use that as your benchmark – the inventory is a little over six months.

Scarsdale NY Cooperatives:

Cooperatives in Scarsdale – including Garth Road with a Scarsdale P.O. – showed moderate gains in prices – up 3.8% over Q1 in 2009.  The average sales price in Q1 of 201 was $246,000.  Sales volume was static from the previous year and inventory vs. closings indicates that there is a 9.7 month supply of active listings  if you look at closed sales from Q1 2010.  Looking at contracts and pendings that goes down to 6.5 months.

An Important Note About the Criteria for the Statistics:

I handle each type of housing in Scarsdale differently. I also include a special section for single family homes in “Edgemont” which is really in the town of Greenburgh with a Scarsdale post-office and zip code.
For condominiums and cooperatives, I use the Scarsdale post office and zip code as my criteria. Many of these complexes are actually located in Greenburgh and Eastchester.

This reflects the way most buyer’s shop for housing. Coop and condo buyers work by address whereas those looking for single-family homes are often shopping municipality and school districts.

Further Reading:

Scarsdale NY Housing Market Statistics – Fourth Quarter 2009:

Scarsdale NY – Housing and Market Statistics for Third Quarter 2009:

Housing and Market Statistics for Scarsdale NY – Second Quarter 2009:

Scarsdale Coops – Pet-Friendly Scarsdale Country Estates

Scarsdale Manor Cooperative – Garth Road -Scarsdale NY

The Chauteaux Cooperative – Scarsdale NY

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

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:

White Plains NY Housing Market Statistics – Fourth Quarter 2009

White Plains NY Housing Market Statistics – Third Quarter 2009

Housing and Market Statistics for White Plains NY – Second Quarter 2009

The Broadlawn – White Plains NY

Trump Tower – White Plains

Jefferson Place – White Plains

Gedney Farms – White Plains NY

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

Whether  buying or selling Westchester NY real estate, clients often need help with curb appeal.  When selling, landscaping creates an inviting atmosphere that invites buyers into the home.  Buyers, on the other hand,  are often eager to put their own personal stamp on their gardens and may often be at a loss as to what to do or where to go.

Carlson’s in White Plains has expert advice and marvelous arrangments for both home and garden a like.  The arrangments can run the gamut from highly formal to totally funky.  I particularly like to go there during the different holidays – such as Easter, Christmas, New Years, Halloween  to see what they have.   Over the years  I’ve mentioned Carlson’s in several blogs. I’ve taken many photos of the arrangements. So I compiled the photos into a video.  I thought it would be a nice diversion from the rain and wind we are expecting this weekend.  Enjoy.

Carlson’s Floral & Gift is located at 625 Dobbs Ferry Rd., White Plains NY 10607 – 914-684-6084

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com. All rights reserved.

In truth, I can’t blame sellers for this…their minds have been levered to continued price increases to such an extent that the current market has left most sellers blind sided.

The first thing I often hear is that “I need to get X out in order to buy my next home which I can now get for Y  because its gone down in price.    The trouble if the property you want to buy has gone down so much in price, chances are the property that you want to sell has gone down by a similar percentage.  Wishful thinking is often the culprit here.  Markets are fluid – that was fine when prices were going up – but it also holds true when prices decline.

Misinformation is another issue.  Many sellers look at what their neighbor is asking for their home.  Asking isn’t getting.  Many listings are overpriced  in this market – so setting your price on the basis of other listings is not a wise strategy.

“But my neighbor sold their house for X just six months ago!”  Six months is a lifetime in a depreciating market.   If your market is depreciating – and many markets still are – then prices have decreased over six months.

Zillow zestimates and other information on the internet may or may not be accurate.  Zillow has been off as much as 25% in our area.   So if the zestimate of your property seems too good to be true, it probably is.

If you need to sell, price your home competitively – this is particularly important in a declining market where inventories are high and buyers are few. Overpricing your property will result in fewer or no showings.  The property will sit as the market declines further – resulting in an even lower price down the road.   Overpricing a home is just about the worst thing you could do in this competitive market.

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

There have been a lot of blogs written lately about who is to “blame” for the housing bubble and its disastrous aftermath. Some bloggers blame lenders, some blame agents, brokers, NAR, the Fed, home owners…the list goes on and on.
But one common thread I find very discouraging are blogs which lay blame on  the homeowner who was underwater.  They should have KNOWN better. They were GREEDY. They were IRRESPONSIBLE, they were this, they were that…

In truth, the housing debacle is as much a result of the decimation of the middle class as it is about a housing bubble itself.   Families have found the ground shifting under them faster than they could ever have imagined. Many homeowners have found  themselves into the horns of a dilemma.  This is the story of my generation.  As a forty-something I’ve felt the sands shifting under my feet ever faster.  I have found myself scrambling to earn those ever elusive extra dollars that will allow me to keep my own home – even as I help my clients sell theirs.

The middle class has been under assault for the past 30 years.
Elizabeth Warren outlined it the best in the presentation embedded below.  For those who don’t have 50 minutes to view the video – here is a brief synopsis:

Dr. Warren did a series of studies comparing  the income and expenses of a family of four living in 1970-1971 to a family living in 2005-2006.  The summary of her findings gives us eye-opening insight as to what has happened to the middle class.

Income & Savings:

• Overall income went up for COUPLES.
• Income for males decreased when adjusted for inflation.
• So the bump we got in overall income  came from having a second worker.
• Salaries have actually been flat or have been decreasing over this period.
• In 1970 savings was 11%
• In 2005 savings was under 0%  (debt had increased)
• Revolving Debt up from 1.4% to 15%  of income.

How did this happen?
Was it rampant materialism combined with childish irresponsibility?

Where did the money go?

• Clothing: Families are spending 32% LESS on clothing then they were in 1970.
• Food:  including eating out:  Families are spending 18% less on food than in 1970.
• Appliances: Families are spending 52% less than in 1970
• Car ownership:  Families spent 24% less on each automobile in 2005 then in 1970.
• Electronics – including internet and computers:  up $300 a year from 1970.

So it wasn’t traditional “luxury items” that got people into trouble.  The electronic craze, such as wide -screen TV’s play nominal role at best.

Here’s where prices went UP, UP and away….

• Home: There was a 76% increase in housing costs due to higher prices and taxes.  But the average size of  a home increased by an average of one room.
• Health Insurance: (via employer only)  Up 74% from 1970.
• Cars: Outlay up 52%  to account for the need for two cars once both husband and wife are working. Increased 52% – because most are now 2 car families because both parents employed.
• Childcare – up 100% (since the mother was mostly home in 1970)
• Taxes:  The tax rate is up 25% due to having a second earner and thus higher overall income.

Here is the trouble – the expenses that are down are the flexible expenses.  The expenses that are up are not flexible.  The expenses that are UP are what Elizabeth Warren calls “Fixed, relentless expenses.”

Increased Vulnerability:

• Families need BOTH incomes to make the mortgage.  There is no leeway if someone gets sick and no one to put in the workforce to replace the person that has died, become sick or incapacitated.

• The risk shift: Warren sites Jacob Hacker’s work -  on the risk shift.  Here they analyze the risk of a 20% drop in family income.  Income volatility is up nearly 20%.  This is in good part due to the fact that since both workers are needed to sustain income, the risk of incapacitation or layoff DOUBLES.

• Health Care is totally dysfunctional…Warren sites the tremendous vulnerability families have to health care.

1. Lack of insurance coverage. More and more middle class losing coverage.
2. Decreased health care – releasing patients quicker and sicker.  (I can attest to that with my father. The hospital is forever releasing him TOO SOON – dumping the burden of care on my shoulders. This has wrecked havoc with my business as it sits. But I was a 9-5 worker – it could  – probably would – cause me to LOSE my job.  Sending home sick people saves insurers money – but it foists what should be nursing care on the family who is already working full tilt to meet the bills. Warren calls this “just one more push” over the edge if there is a serious illness. She sites illness as a major and “direct income impact.”
3. Warren sites “faux insurance” – where people think they have good insurance until they get sick.

So, next time we see a family in trouble. Let’s not think ill of them. Let’s stop pointing fingers.  Remember if you point a finger and look in the mirror – you see a finger pointed back at you.

For those who ended up leveraged to the hilt – I can see how it could have happened.  As their income potential kept declining, they kept thinking “I am smart, I work hard, I have a good reputation in my field and I play by the rules – so things will get better – this is only temporary.”  In previous recessions this would have been the case.  But the last recovery was truly jobless.   The rich got richer, but the middle class went nowhere.  They never even recouped the ground they lost in the crash of 2000. So they borrowed on their homes which went up in value thinking “this will pass – its GOT to pass.”  Everyone felt that  eventually things would get back to normal and the jobs and money that went with them would flow freely once again.  But things didn’t get back to normal.  That was the “old normal.” Instead, we have a “new normal” which  is an unacceptable normal where the middle class are being pushed off the cliff and into the abyss.

Lets also remember that the bottom line here is jobs, jobs, JOBS.  We need to swing the doors wide open on well paying career opportunities.  We need to stop out-sourcing, downsizing, and importing cheap foreign labor and keep well-paying jobs HERE in America.

© 2010 Ruthmarie G. Hicks. http://thewestchesterview.com.  All rights reserved.

In the post, the details of the shake-up were described in detail – particularly with respect to Sotheby’s and Better Homes and Gardens Rand.  Many have been affected by the changes that have roiled our market.  I was briefly with Prudential Rand (before it became Better Homes & Gardens Rand) when they acquired Nelson-Vrooman GMAC in the spring of 2008. My initial brokerage at Century 21 Wolff was also acquired by Rand.  So agents have been reshuffled like playing cards in a very large deck.

This fall out from this may signal a changing of the guard away from the large franchise model to smaller independents  – or – it could consolidate the power of the few left standing.  Although I belong to a fairly large franchise, it is my hope that some of the smaller independents start to carve a nice niche for themselves where they can level the playing field and keep a lively competition going.  In general I have been quite hard on the large franchises because some (not all) have sat on the laurals of their name brand. All the while doing little or nothing in the way of customer service.  New agents were often “on their own” which also wrecked havoc with customer service.

But to those in our area that had a favorite brokerage that is now gone – I will offer the following advice.  Agents sell homes – not brokerages. If your brokerage of choice is gone, but you had an agent that you worked successfully with in the past, I suggest you track him or her down.  It is more than likely that the agent is still in business with another brokerage.He or she has not changed just because they are no longer with the same broker.  If they did well by you in the past, they will continue to do so.

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

Now, I think most consumers would understand that in order to keep their doors open, a brokerage needs to be profitable.  The bottom line for any business is that they must turn a profit or close their doors.   Ideally, profitability should be tied to customer service.  The agents of a brokerage should provide outstanding customer service including intelligent negotiating skills, a fine marketing plan, and service that smoothes  the transaction process.  Unfortunately, that model is not the prevailing one among brokerages.

The way brokerages function often is a mystery to the consumer and it often comes as a shock to new agents who think that the brokerage is there to “support” them.  After all they are paying very hefty splits to the brokerage -supposedly for leads and support and training from the brokerage. And therein lies the rub for the consumer.  Most brokerages disconnected from customer service and the newly licensed agent course became the big  cash cow.  They recruited and recruited throwing  anyone with a license and a pulse up against a wall and hoping that something will stick.  Even a non-productive agent had a couple of good deals in them from family and friends.

But what does this offer the consumer?  Pretty much nothing more than a crap shoot with respect to selecting an agent.  WIth “training” generally at a minimum and a lot of newly licensed hopefuls trying to learn by the school of hard-knocks, the consumer is left out in the cold.  This model has been  a win-win for the brokerages and a lose-lose for the consumer.

Has this worked for the agents?  No, not at all.  The ease with which a license can be gotten and the fact that most brokerages will recruit just about anyone has created a glut of agents that has been seen in very few areas of business.  The joke is that you can’t throw a rock out the window without  hitting a real estate agent and I would say that this is largely true.  The result is thousands of agents crawling all over the unsuspecting public for a small slice of the real estate pie.  Some competent professionals, but many more struggling agents who haven’t seen a deal in months if not years.  For those who must make their bread and butter this way, the time and money spent lead generating is daunting and inevitably impacts the time spent on customer service.

Thus you have the vicious circle:  As more brokerages recruit ever more agents, each brokerage must step-up to get more of their share of agents.  As this continues, customer service gets left behind and the system becomes so glutted that the focus has to be on generating new leads.  Right now brokerages are addicted to sheer volume. Customer service will only return when someone gets brave enough to turn the model on its ear and say “quality over quantity.”  I’m not holding my breath…

© 2010 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Increasingly, listing agents, myself included, are encouraging sellers to stage their homes prior to putting them on the market.  That includes, but is not limited to painting, pointing up and arranging furniture in a way that maximizes the potential of the space and creates a neutral atmosphere.  We ask that seller’s depersonalize the space so that buyers can “mentally move in.”

Although I am not one to spend a homeowners money needlessly,  there are times when I feel staging is essential.  Staging is most beneficial in the following cases:

An Empty Home:

When the sellers have moved out – they tend to leave an empty shell of a house that used to be a home.  That house can tend to lack personality and be all too forgettable  to a prospective buyer. Right now there is an excess of inventory that is completely unfurnished and after a while they can all start to look the same to buyers.  If a house is in danger of becoming that forgettable – it needs staging in order to stand out in the eyes of buyers.

A Very Dated Space:

A space that looks like it was in the height of style during the  1970s complete with orange shag carpets and disco lighting definitely could use a facelift.   Not that there is anything wrong with the 70s – but many buyers weren’t even born yet and its hard for them to imagine their things in homes decorated in a way that their parents would appreciate.

An Awkward Space:

Spaces that are tight or have an awkward configuration really benefit from proper staging.  Often buyers just can not possibly imagine how on earth to decorate a space.  Often they feel that their furnishings won’t fit.  In cases like this, it is vital that this objection be neutralized or the home will just “sit.”

For those who feel it is a waste of money, it should be noted that no one would stage if it didn’t actually work.  Staging can pay for itself.  If buyer’s find the space desirable and can imagine themselves in the home, they are more likely to make an offer and for top dollar.

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com. All rights reserved.

The contrast between old-school hyper-local agents and the newer nomad agnet was driven home to me while I was working with two listing agents who still work exclusively in small niche markets.  I was at a closing with one of them and she implied that since I had the entire city of White Plains to cover, why didn’t I simply refer out the client who finally bought in Scarsdale?

Can a real estate agent be too local?

I knew that the attitude about staying hyper-local is alive and well though it appears to be a staple of old-school real estate.  Still, I was more than a tad surprised.  Scarsdale is not the moon.  It is the town directly adjacent to the west side of White Plains and about a whopping six miles from my front door to the center of the village.  If we followed this line of thinking to its most extreme would mean that a buyer potentially moving from New York City to Westchester NY would have to have as many as five or six agents to explore all the possibilities open to them that were within about 30 minute commute.    For the consumer this seems most unwieldy if not highly impractical.  Could you imagine the mountain of agents all crawling over each other for the buyer’s attention?  What a mess. Not to mention a monster of coordination.

From the agent’s perspective, there could also be a danger to being too local. What if something happens to that small segment of the market you represent?  If your geography/price range are razor thin – you are setting yourself up for trouble.  This was clearly seen this year when agents who specialized in small high-end markets got creamed because jumbo loan issues bit them in the backside.   Another listing agent I encountered was used to selling about 10 major properties a year – but this year had only managed a single sale.

The nomad real estate agent:

On the other hand, we have the opposite trend.  I’m seeing this from the listing side.  There are a cohort of listing agents that are increasing their range to encompass as many as five counties.  These agents list in such a wide ranging area that I refer to them as “Nomads.” (Please don’t yell at me if you are from a rural region.  I am speaking from a local perspective in a densely populated area.)  Densely populated areas tend to have more gyrations in market conditions per square mile than more rural locations.  The number of towns, cities and villages with their local governments and school systems  within Westchester County alone is daunting enough.  Market  nuances that can seriously impact home values would be a black box to an agent that is overextended geographically.   I have to question whether this is in the best interests of the seller.   Let me put it this way:   If going to each listing once a week would entail a gasoline bill that looks like the national debt – I submit that you are probably trying to cover too much ground  and that this could seriously impact the result to the client.

Why do I say this?  Well, I’m a numbers type of person, and I started looking at the raw numbers of agents who cover large territories and found a disturbing trend.  I will give the caveat that this was not totally scientific. I looked at a handful of agents randomly.  Still, the results from my informal survey were pretty compellling.  When comparing solds to expireds and cancelleds, the ratio of closed sales to listings was consistently under 50% .  35-45% success appeared to be the norm for the Nomads  whereas anything from a 55-90% success rate was the norm for those who stuck closer to home.   To be fair, I  chose not to include expired or cancelled listings that the agent re-listed.  Nor did I include sales listings that wound up as rentals.   The further the range, the lower the actual ability to close the sale.

Now, as a business model, being a Nomad might make sense.  It’s probably exhausting to service so many listings that fail, but  many businesses are based on throwing as much up against a wall as they can to see what sticks.  It can be profitable to work that way.

But what about the seller?   For the seller, listings that just won’t sell are like beating your head against a wall – it feels so good when it finally stops.

Personally, I take a line right down the middle of this controversy.  I have too many buyer clients who want one-stop shopping to limit myself to one town or community.   Therefore, with respect to buyers, I cover pretty much the bottom half of the county. With  listings, I have traditionally stayed closer to home.  However, I am gradually extending my listing range to also encompass the lower part of the county.  When listing opportunities arise in areas where I have not taken listings previously, I generally choose to work with a co-listing agent who is experienced with respect to the neighborhood in question.   In that way, I have started to expand my territory while retaining top service for my clients.

© 2010 Ruthmarie G. Hicks, http://thewestchesterview.com All rights reserved.

For the stills here is a link to Siberians in the Snow on Flickr.

Enjoy the video and  Happy Holidays.