From Greenburgh to Goshen, brokers, buyers and sellers are coming to grips with the new face of the housing market. For the most part, they say it is time to accept the new rules of engagement and get with the program.
Out: Extravagance and haste.
In: Frugality and patience.
Jeff Rand, managing partner of Better Homes & Garden Rand Realty, told the company”™s sales force in its third quarter report that markets in Westchester and the mid-Hudson region were in the process of correcting themselves the first six months of 2009. But overall, he continued, the market is “still struggling compared to last year. The number of homes sold continued to decline from last year in virtually every county in the survey.”
According to Rand”™s report, only Sullivan county saw sales up, by 3.1 percent over last year, which was attributed to the attractiveness of the area”™s lower-priced market.
Prices in all markets in the Hudson River Valley have nearly “bottomed out,” according to Realtors.
“They”™ve stabilized, and that”™s a good sign,” said many in June, when HV Biz examined the marketplace and spoke with agents and brokers at the end of the second quarter.
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“While I am far from making any unequivocal statements, the past two months lead me to believe that we may, at last, be bouncing along the bottom of what has been a challenging marketplace,” said Ann Garti, executive chief officer for the Greater Hudson Valley MLS in Goshen, in a prepared statement.
Along with her email, Garti sent sales figures for Orange and Rockland counties, which both saw double digit percentage drops in home prices from June 2008 to June 2009.
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Realtors across the board agree that anything under $300,000 will move, “But if it”™s more than that, people are going to have to wait it out,” said Jeff Ackerley, broker/associate with Prudential Serls in Rhinebeck. “Anything in the $400,000 to $700,000 range isn”™t moving, unless it has some aesthetic quality with tremendous curb appeal.”
Rhinebeck, land of second-homeowners, is seeing more new homebuyers thanks to the federal tax credit ”“ but the credit is not across the board; some prospective home buyers are finding out the $8,000 perk may not be what they”™d hoped for if their family incomes are too high. The credit is due to expire December 31, 2009.
National Association of Realtors president Charles McMillan told Realty Times, “Congress needs to keep the momentum going. Even with a good recovery taking place, the market is not yet back to normal. With the gradual absorption of inventory, we are on the cusp on a general stabilization.”
Even rentals are sluggish, say some brokers who have empty houses and apartments sitting on the market.
“People aren”™t moving unless they absolutely have to,” said Ackerly. “Most are waiting to see if the market will go down further; others are fearful their jobs may not be there next month and don”™t want to risk investing in a move. There”™s a lot of trepidation in the housing market right now. Consumers have pulled back in all areas, and housing is one of them, but it”™s a huge component that affects all the others.”
The Westchester-Putnam Board of Realtors reported this summer that it expected the last two quarters of 2009 would see incremental improvement in the market. The board expects this year”™s market performance to come in at the same general level as the early 1990s. “The positive element within that low expectation,” said the report, “is that we will have bottomed out this year and can hope for continuing improvement in 2010 and beyond.”
