After the worst housing recession since the Great Depression, home values have recovered for a large swath of the Westchester market. Up until about 2015, this recovery had been very granular, with almost all the gains going to a small sliver of locations in the Westchester area.
Since that time, a more robust and broad-based recovery has been underway for a larger portion of the county. Nowhere is this more obvious than the river towns of lower to mid-Westchester. Much of this has been driven by NYC transplants from Brooklyn and Queens. It was as if everyone relocating to Westchester discovered what Westchester residents already knew: the river towns rock. Markets that had been slowly chugging along suddenly roared to life, allowing the river towns to finally get their due.
In the single-family home market, the run-up has been particularly striking in Tarrytown and Sleepy Hollow.
There are many factors at work here which likely include the redevelopment plans for the old GM plant. There is also an epic housing shortage in the area which is an after-effect of a 10-year recession in the housing market.
This has led to an inventory crunch which has upped competitive bidding and has sharply reduced the DOM (days on market) for listings. In 2012, when the recovery was just starting, the DOM for Tarrytown and Sleepy Hollow was 156 days. That is down to 37 days so far this year.
This shortage is reflected in the current market where there are 26 listings on market and 23 homes under contract. That’s a bit shy of a 2 month inventory which is extremely tight. Bidding wars and the number of sales reflect higher demand than inventory.
In 2015 the median sales price for a home in Tarrytown/Sleepy Hollow was $625,000. That jumped to $725,000 in 2016 and as of mid-year 2017, median sales prices sit at $843,000. No matter how you slice it, that’s quite a jump.
As can be seen from the chart above, the market was slowly recovering until the interval between 2015 and 2016, when the market started making tracks.
No one has a crystal ball, but for the time being, low inventories and high demand do not seem to be ending. The levers for this to moderate are just not there.
Millennials are finally buying into the housing market. The pent-up demand from this generation is a big part of what is happening. In spite of all the rumors of terminal urbanization, the millennial generation is choosing the suburbs to raise a family. Prices in the city including the boroughs of Brooklyn and Queens are also driving city dwellers to Westchester.
Sleepy Hollow used to be known as North Tarrytown. It officially became Sleepy Hollow in 1996. Even though the two villages are in different towns, they share a middle school and high school.
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