A transfer from the corporate world, Jennifer Fivelsdal entered the real estate industry in 2002, beginning with large regional franchises. A year ago she founded Red Hook-based JFIVE Homes Realty L.L.C., specializing in the residential market about which she also has blogged for five years.
How would you describe the regional market?
“The market is still a challenge. Foreclosures and short sales are an established part of the mix and prices have dropped. So, for sellers this is an entrenched buyer”™s market and therefore some sellers are holding back from listing. Other sellers are forced to sell for even less than what they owe on their mortgage just to avoid a foreclosure.
“This is also an opportune time for investors; they can snap up properties, hold them and certainly make a good return in the future.
“For first-time buyers, it is a great time to buy if they can qualify for a mortgage. I am also delighted to see more consumer education happening prior to purchase. For example, Hudson River Housing in Poughkeepsie does a great job of this, and they also help these buyers to get grants to help with closing costs.
“Finally, the regional market for luxury homes and second homes is offering great value for the first time in many years.”
How do you identify the market before the recession?
“Giddy comes to mind. People were getting mortgages that were not in line with their earnings and I could not believe the price some sellers were asking and getting. The sellers were in the driver”™s seat and multiple offers were the order of the day. Builders were putting up homes in areas you would not expect to find homes. Sellers, builders and agents were happy and buyers were frustrated. How things have changed.”
What percentage of home price has been lost in the last three years?
“This is a question that can be answered several ways. And when asked I usually take the opportunity to show that real estate is truly local. For example, two towns in Dutchess County can have really different markets: town of Washington might have less sales but will have a higher median price because it is more of a luxury market; on the other hand, town of Poughkeepsie will have more sales, but more in the entry level and middle class end of the market.
“On the drop in home price, if we take say the month of April 2008, the median price in Dutchess County for single family detached homes was $310,000; in 2011 $248,250 which works out to be around a 24.9% drop.”
Do you believe we found the bottom? How about a rebound?
“No, I don”™t think we have found the bottom, but it is close. I say this because there is still a good inventory of distressed properties out there. Recovery will be anemic for a while and sellers should not expect to see the prerecession prices for many years to come. I feel that with the constraints on mortgages, growth will be more realistic; giddy is history.”
What percent of your buyers is directly linked to New York City?
“I would say about 40 percent from New York City and we do get buyers from the other surrounding counties as well as New Jersey and Connecticut and some relocations. The Mid Hudson area is a big second home market, and we also cater to those priced out of the markets to the south.”
Interest rates are already low. What do you believe is needed to spur activity?
“Yes, interest rates are low and home prices have come down, but what is needed for this market to come alive is for people to have more confidence in the economy and in their personal economic conditions. The job situation needs to improve and banks need to loosen the purse strings a bit. What I mean by that is, that the banks need to be willing to approve more loans while still lending responsibly. Another major concern for the consumer is high property tax rates, which many can no longer afford; the numbers show that we are losing population to other states. This is a complaint I hear over and over.”
