White Plains New York homes have been following patterns seen throughout county with Westchester county homes for sale continuing to drop in value. Sales volume was up during the period that the tax credit was in place. But like much of the county, sales volume has has dropped across the board to 2009 levels since after the expiration of that stimulus.
For Q2 2010 prices for White Plains NY homes for sale were down from the previous year. Single family homes – which took the brunt of the housing decline last year – had less of a correction this year. The good news here is that as far as single family homes in White Plains goes – we may be still trending down, but the steep declines apparent between 2008-2009 are not present. The story is different and more discouraging for condos and coops.
White Plains NY homes for sale declined 4% from Q2 of the previous year to and median price of $559,000 – (down from $583,000 in Q2 2009). The price range went from $245,000 for a short sale to $1,300,000 for a high end home. The prices – particularly at the higher end are still trending downwards. Stiff competition from areas such as Scarsdale, Rye and Larchmont – which have had major price corrections are perhaps contributing to further declines in the higher end single family market of White Plains. Previously out of reach for many, these other markets are back on the high end home-buyer’s radar.
Fueling the competition with other communities are the property tax hikes that have taken away the tax advantage that White Plains homeowners could point to in previous years. Property taxes have risen disproportionately in White Plains over the past several years and single family homes have been hit hard. The present trajectory of taxes on White Plains single family residents is unsustainable and must be reigned in or further declines in value directly associated to this issue are likely. I hope some of the city officials are reading this…
There appears to be a bit more than 7 months of inventory overhang on the market – which puts it into the buyer’s market territory – but just barely. This is a big improvement from past quarters and is a good sign. Sales volume is up significantly from 2009 – but the effect of the tax credit may create a false sense of security. The 3rd quarter numbers on volume will be informative. But contracts and pendings indicate that the market has maintained momentum – with the caveat that price declines are continuing.
Median Condo prices in White Plains NY are following the downward trend of Westchester condos generally. Prices are off 10% from the previous year with a median price sitting at $355,000. At the lower end of the spectrum was a 1 BR condo with street parking in the downtown area for $160,000, while the high end was $1,300,000 for a unit at the Ritz Carlton. Volume was up over 2009 due to the tax credit, in fact it nearly doubled. But contracts and pendings indicate that we are rapidly heading back to 2009 levels. The inventory overhang is high if you look at current contracts and pendings as a measure of future activity. If that’s the direction sales are heading – there is an 18 month inventory overhang. The Q2 sales results indicate an 8 month inventory. Reality probably lies somewhere in between with at least a year of inventory on the market.
Westchester coops represent an important entry point to the housing market. Even with the tax credit prices tumbled 22% over the previous year. The median price for Q2 2010 was $185, 000 down from $238,000 the previous year. Sales volume was up significantly – over 40% due to the tax credit, but current contracts and pendings show a marked decrease in activity – back to 2009 levels. The inventory overhang ranges from 10-18 months depending on whether you look at Q2 sales or current contracts/pendings. Like White Plains condos – there appears to be well over a year of inventory on the market.
All in all, condos and coops throughout Westchester still have a way to decline. Single family homes which declined far further earlier in the correction could be poised to recover or at least stop declining. However, much of that depends on White Plains getting its house in order and getting property and school taxes under some kind of control.
© 2010 – Ruthmarie G. Hicks – https://thewestchesterview.com – All rights reserved.
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