New Rochelle was in the middle of a major revival when the housing recession hit hard. The result is that this up and coming city took a bigger hit earlier in the housing recession than its more well-established “sister city” White Plains.
New Rochelle is now where White Plains was about 10 years ago. Geographically, it has many things going for it. It has the Long Island Sound along its eastern border which gives it a distinct aesthetic edge over the land-locked White Plains. It has a train station complete with a new parking facility and boasts a 30 minute commute to Grand Central Station. Granted it has a way to go before it becomes as established as White Plains, but for those just can’t afford what they want in White Plains, their dollars will stretch further in New Rochelle.
The downturn in prices presents buyers with a unique opportunity. Though there is risk in such an opportunity, all bad cycles come to an end and New Rochelle prices are truly reflecting a corrected market. Add to that the fact that those buying now are getting in closer to the “ground floor” than they possibly could in White Plains. Buyers should take notice because this is an area ripe with opportunity that fully established areas lack.
Coops in general have come down in price, but this quarter actually showed an increase when compared with the previous ear. The average price for Q1 2009 was $198,000. However, with over 15 months of inventory and overall sales down 42%, this is still a buyer’s market.
Condos have been hit hard in other municipalities. This has been due to overbuilding of luxury high-rise units. New Rochelle has its share of this type of housing where Trump Plaza comes immediately to mind. Prices were down nearly 8% over the previous year and sales volume was down 67% from 2008. In fact, only four condos sold during the first quarter. The overhanging inventory can be measured in years – not months.
Prices were hit hard – down 63% over the previous year. But this might be more of a reflection of the type of housing sold – and not so much an actual price drop. New Rochelle has some very expensive areas that are not selling well. This has a lot to do with the public saying “less is more” and is exacerbated by the status of the “jumbo loan” market with high interest rates. Total sales volume was down over 50% and there is close to 30 months of inventory on the market. This too, is definitely a buyer’s market.
© 2009 Ruthmarie G. Hicks – all rights reserved
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