Mamaroneck is a town along the sound shore that is very popular with home buyers. The town is a major stop along the New Haven line with a relatively short commute to Manhattan.
Mamaroneck has a slightly lower median prices when compared to other sound shore towns such as Rye or the village of Larchmont. Prices starting taking off after the market bottomed in 2011.
Like most of the popular markets in Westchester, prices in Mamaroneck took off quickly in 2012. Technically, prices peaked in 2015 and have drifted downward a bit since then. But honestly, it looks as though the market got a bit ahead of itself in 2015, posting a near 17% gain in median prices over the previous year. Had prices not pulled back a bit, one would worry about being in bubble territory. Prices have been down 1.4% YTD over 2016. But this is well within the margin of error.
Meanwhile, days-on-market (DOM) are at record lows (34 days). This indicates a very strong and competitive market. The ratio of active listings to homes in contract shows that there is about a 3-3.5 month inventory. That too is very bullish.
So this is a market that really isn’t posting major price gains. But demand is high and the market indicates a very competitive market for home buyers. Low inventories indicate that the area may be taking a breather from price gains, but this is hardly the stuff of a bear market. If the current shortage of inventory continues, prices are poised to move upward.
Buyers should be aware of this trend and bid accordingly. One thing I am noticing is that home buyers are underestimating the housing shortage. They often live to regret lowball bids that they made on houses that got snatched up from under them. This is not to suggest that they overbid. But buyers need to listen to their agents when they suggest a price point that is a bit higher than they would like. Most of determine these price points through our understanding of what the market is currently bearing and what the competition is.
Sellers are in a sweet spot. But that doesn’t mean pushing prices beyond market value. This can come back to bite a seller if the home sits on the market or worse, doesn’t appraise.
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