WESTCHESTER:
Though the popular belief is the price of Westchester County homes has dropped, the reality is that the market is relatively stable, industry observers say.
“As far as the market we have currently, the statistics we have through the second quarter show the total number of sales slightly up from 2006,” said Gail Fattizzi, executive director of Westchester Real Estate Inc. “The median price (of single-family houses) has slightly gone down from last year. In the second quarter of 2007, the median price of a single-family house was about $700,000; in 2006, the median price of a single-family home was $715,000.”
According to Fattizzi, Westchester has been able to maintain such a stable market because of its many positive attributes.
“Westchester has a fantastic quality of life, an (abundant) availability of land and the number of people who want to live here stays strong. Interest rates are also low,” Fattizzi said. “One of the beauties of Westchester is that if someone wants something like the city, we have White Plains and New Rochelle or something more rural, they can go further upstate. We have something to offer everyone in the county. These things will keep us stronger than other areas in our country.”
Regarding the recent “mortgage meltdown,” Fattizzi said risky loans have “gone away” and lending guidelines have become stricter. However, buyers with stellar credit will still be able to get loans.
“Jumbo loans, which are for $400,000 and more, are still available but because they can”™t be sold on any secondary market investors haven”™t bought them.” said Fattizzi. “Therefore, the rates on these loan are slightly higher. How much effect it will have on the market is hard to tell.”
Year-end Wall Street bonuses constitute a major variable in the county residential housing equation..
“Wall Street bonuses have been good,” Fattizzi said. “That money trickles up to Westchester and people will put that money towards homes. If the Wall Street bonuses decrease (this year) it may have an effect on the market.”
Overall, “we have a pretty balanced market,” Fattizzi concluded. “It”™s not favored to a seller”™s or buyer”™s market. If people are realistic (both sellers and buyers) we can put together transactions.”
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DUTCHESS:
Dutchess County”™s market is “healthy,” according to Emily Craig, broker for Prudential Serls Prime Properties in Fishkill. Despite the nature of the current market, “the sales time has been prolonged for the residences that have not taken modest price reductions,” said Craig. “Therefore, compared to last year at this time, properties for sale take longer to close.”
According to Craig, the lack of municipal water and sewers in most Dutchess County townships is “one negative effect which buts desire against ability and availability for ”˜affordable housing.”™” The large lots, cost for private septic systems, “coupled with the cost for subdivision of building lots that are frequently zoned larger by different towns in the county, make it difficult to build new residences for the general work force,” Craig said.
Craig said increased interest rates for mortgages are also affecting the number of sales.
She said that prices have been coming down in Dutchess. “There is an increase in available inventory in most price ranges so it is definitely a buyers market.”
In comparison to the neighboring counties, Craig said, “Buying and living in Dutchess County include lower prices and taxes, commuter convenience for desired sustained employment, economic diversity, excellent public and private educational institutions, quality health care and interesting cultural and varied recreational opportunities.”
President and broker Robin Ham of RGH Realty #1 Inc., who deals with real estate in Putnam, Westchester, Rockland and Orange counties, said the national subprime crisis has had an affect on all of the markets.
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“(The market) is a little slow right now.” said Ham. “Buyers are nervous and banks are re-evaluating buyers right now. With me and my clients, I”™ve been having problems with the subprime ”¦ that”™s been my major problem. Having good credit is so important and lenders were being so lenient with loans that it has caused these problems.”
Since the mortgage meltdown, Ham said it is the first-time home buyers whom the market has been unfair to.
“Sellers are frustrated because their houses aren”™t moving and buyers are taking their time because the prices are too high,” Ham said. “But sellers aren”™t being realistic right now because they”™re still in the mindset that prices should be high.” In general, Ham said prices are coming down slowly.
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FAIRFIELD, Conn.:
“The northern Fairfield County real estate market is soft at present with more sellers than buyers,” said John Casey, Realtor-sales professional at Pandolfi Properties Inc. in Danbury, Conn. “Prices do not increase every year historically although many buyers counted on the recent trend of ever increasing home prices continuing.”
As for the “subprime lending debacle,” Casey said the “problem is mostly limited to other states and has not had a major effect locally.”
Casey said some sellers have had a bit of a hard time adjusting their prices to the buyer”™s market after being in the “catbird seat for so long. But Realtors are now very hesitant to take any listing that is not realistically priced. Any home that is overpriced will not attract buyers.”
A bucolic setting remains a draw. “Candlewood Lake continues to be in demand because this is an active weekend home market for New Yorkers who love the recreational opportunities the lake offers, the close proximity to New York City and the reasonable prices compared to the Hamptons and other waterfront second-home areas,” said Casey.
According to The Connecticut Real Estate Market Report by Connecticut Prudential Realty”™s Vice President of New Homes & Land-Specialty Markets Barry Rosa, the median price of a single-family home in 2006 was $562,000; it jumped to $585,000 in 2007. The sales of single-family homes are down about 10 percent from last year; condominium sales are down 11 percent. Sales prices have been stable, “with only a slight fluctuation in the median price from this time last year,” the report said.
Rosa said the number of decreased sales was happening before the subprime collapse, which only affected a portion of the market. However, problems incurred due to the risky nature of the loans.
“Loans were made to people with less-than-perfect credit, there were loans built with big adjustments into them and other loans that were made were stated income loans, where you don”™t prove your income, you just state it,” said Rosa.
Rosa stressed that subprime loans are off the market and regular, conventional loans are still available to those who have good credit.
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