While a new report on real estate activity during the third quarter of the year in Westchester and Putnam points to this being a seller”™s market, there is growing anecdotal evidence of a buyer”™s market taking shape in New York City.
The latest report from Westchester Real Estate Inc., shows an increase in the number of closed sales in this year’s third quarter, 2,175, compared with 1,940 during the same period last year.
The median single-family home sale price in Westchester in the third quarter was $810,000 compared with $699,000 for the same period in 2019.
Condo sales fell to 337 from 414, but the median sale price went up from $399,750 to $424,000.
There were 339 co-ops sold in the third quarter of 2020, down from 455 in the same period last year. The median sale price was steady at $180,000.
There were 102 multifamily houses sold, a drop from 177 in the third quarter of 2019, but the median price rose from $545,000 to $575,000.
Putnam was strong with an increase in the number of single-family sales hitting 351 and a median sale price increase to $411,500 compared with the 2019 third quarter’s numbers of 323 single-family homes sold and a median sale price of $375,000.
The number of condo sales in Putnam went up from 39 to 50 although the median sale price dropped from $255,000 in the third quarter of 2019 to $248,500 in this year”™s third quarter.
There were two multifamily houses sold compared with nine in last year’s third quarter. The median sale price was $372,500 in the third quarter of 2020 compared with $335,000 in the same period last year.
The report said inventory in the single-family category is 26% to 27% below last year”™s levels in both Westchester and Putnam.
“The phenomenon of improving sales numbers and depleted inventory is not specific or unique to the Hudson Valley. We are seeing this across the country, with the National Association of Realtors reporting that U.S. home sales in August were the highest in nearly 14 years, with a median price increase of 10.4%,” the report said.
Gail Fattizzi, who is executive director of Westchester Real Estate Inc., along with being the 2020 president of the Hudson Gateway Association of Realtors and regional manager of ERA Insite Realty Services, told the Business Journal that while real estate professionals are seeing a strong demand for properties north of New York City, in the city itself rental prices are down 20% to 25% with a 50% increase in rental vacancies and a softening of sale prices.
“We”™ve seen one side of it up here; they”™ve seen the other side of people who have left the city and aren’t coming back right away, so there”™s definitely been a big uptick in the number of rental properties and there definitely have been fewer sales going in the city,” Fattizzi said.
“There’s been a little activity since Labor Day but prior to that it”™s been pretty darn quiet in the city.”
Fattizzi pointed out that a new tax that’s been proposed in New York City, the pied-Ã -terre tax, could result in an annual tax of 0.5% to 4% of the value above $5 million of one-family to three-family nonprimary residences and 10% to 13.5% of the assessed value above $300,000 of co-ops and condos.
“This would affect people who are investors but not necessarily full-time residents of the city. Depending on what somebody is looking to buy in terms of an investment in the city ”“ I do think there’s opportunity for that now. The demand is less, there are no lines at open houses like we have up here, so there’s more negotiability. There’s going to be more inventory and less competition, which bodes well for buyers whether they’re investing or buying for personal use,” Fattizzi said.
Fattizzi said that properties that are coming on the market right now in Westchester often receive multiple offers within a couple of days.
“Maybe they come in on a Thursday or Friday and by Monday or Tuesday they’ve already accepted an offer and are going though contracts and inspections,” Fattizzi said. “That’s not happening everywhere at every price point. Real estate is cyclical. There are times when it’s more of a buyer’s market. Right now we’re definitely in a seller’s market. Price is acute. If something comes on the market and is over-priced, it is not going to get the attention and a quick sale. Buyers are familiar with pricing and have a certain expectation.”
Fattizzi said that people who are looking in Westchester are not confining themselves to particular geographic sections.
“It’s not localized. Maybe in the past people would have a specific area or school district they wanted to live in. They wanted to live in Bronxville, they wanted to live in Scarsdale or Eastchester, whatever their destination was.
“Now they seem much more flexible, so someone who”™s looking at properties down in Bronxville may also be looking in White Plains; they may be looking in Katonah. It’s not hyper-local in that sense,” Fattizzi said.
“That even extends to the Hudson Valley. You can go up to Sullivan County and find bidding wars. The same thing is true in Orange County, in Dutchess County. There are real estate professionals in those areas who are a little bit shell-shocked now at how busy it has been.”
Fattizzi had some advice for buyers and sellers.
“They need to be prepared. They need to do their homework before they get into the market, whether buying or selling. I think you really have to just be very aware of the market conditions and for buyers not to get frustrated too quickly,” Fattizzi said.
“I know it can be challenging if you’re looking to find something to purchase right now, but you just have to be persistent and be prepared. Sellers need to think about where they want to go because if the house is priced right and they get a sale quickly they need to have their next step ready to go.”
