Westchester County NY Real Estate Blog - Inventory

Are Investors Really Buying All the Homes?

Are Investors Really Buying All the Homes?

If you’ve been worried about competing with Wall Street for a home, here’s some good news: Institutional investors (those owning 1,000+ homes) make up a small amount of the market, and they’re pulling back, according to multiple outlets. At the peak of the pandemic housing boom in Q3 2021, institutional investors made up 2.2% of home purchases. By Q2 2024, that number had dropped to just 0.3%.

• Institutional investors currently own 0.4% of the market.

• Small investors account for around 18% of the market.

• Total investor purchases, meaning all non-primary home buyers, hit 14.8% of home sales in Q1 2024, the highest share recorded since data tracking began in 2001.

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Homeownership Rate in Decline

Homeownership Rate in Decline

According to the Census Bureau, the U.S. homeownership rate stands at 65.7%, well below its 2004 peak of 69.2%. Meanwhile, the median homebuyer age has reached record highs: 38 for first-time buyers and 61 for repeat buyers, as rising home prices and high mortgage rates push younger generations out of the housing market. Here are the key factors influencing each generation:

• Baby Boomers: Staying in their homes longer, limiting available housing.

• Gen X: Less impacted by affordability, as most bought homes earlier, but some have invested in rental properties, limiting supply for buyers.

• Millennials: The largest share of homebuyers today, but face affordability challenges, forcing…

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Congressional Housing Agendas

Congressional Housing Agendas

On his first day back in office, President Trump signed a memorandum addressing housing affordability as part of efforts to combat inflation and the cost-of-living crisis. Measures include reducing regulatory barriers, expanding housing supply, and streamlining federal housing policies. Here's what to watch:

• Affordability Focus: Legislative proposals aim to streamline regulations and expand housing supply to address rising living costs.

• ROAD to Housing Act: Introduced by Senate Banking Committee Chair Tim Scott, the act focuses on mortgage reforms, deregulation, and local incentives, alongside enhanced federal oversight.

• Criticism: Opponents like Rep. Maxine Waters argue these…

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Today’s Housing Shortfall

Visual of the Week 

Today’s Housing Shortfall

Real estate economists estimate that the market is short by about three million homes — a classic case of demand outpacing supply. While most homeowners are holding onto favorable sub-6% mortgage rates, making new listings scarce, interested buyers are taking creative steps to stay competitive. Many buyers are using strategies like escalation clauses and partial appraisal waivers, acknowledging the challenge of finding the right home amid high prices and rising costs.

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The Presidential Election ‘Bounce Back Effect‘

The Presidential Election ‘Bounce Back Effect‘

Each year, home sales naturally ease up a bit in the fall but during an election year, the slowdown tends to be a bit more pronounced. This year, nearly 23% of first-time buyers are hitting pause until after the election, likely waiting for a clearer view of what’s ahead.

Historical Market Responses:

Home Sales: Home sales typically rebound quickly. With the political uncertainties in the rearview, both buyers and sellers regain confidence, fueling a more active market. Data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) show that home sales increased the year following 9 of the past 11 presidential elections — a…

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More homes just hit the market – and that doesn’t usually happen in the fall.

Visual of the Week 

More homes just hit the market – and that doesn’t usually happen in the fall.

Now might be the perfect time to buy a home. According to Lawrence Yun, Chief Economist at NAR, the current increase in available homes puts buyers in a stronger position with better pricing options. While mortgage rates are slightly higher than last month, they’re expected to dip again by year-end, improving affordability.

In Westchester, inventory typically peaks in spring and summer, and this year, the highest number of new listings came in April, although we had a nice bounce in September. Waiting for lower rates could mean fewer options later, especially as home prices continue to rise due to limited supply. If you’re…

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New Listings Surge. Is Westchester Back on Track?

New Listings Surge.  Is Westchester Back on Track?

The number of newly listed single-family homes in Westchester County surged by 56.8% from August to September. This increase in inventory is seen as a positive development for active homebuyers and those returning to the market, especially as mortgage rates have decreased recently. While August saw a historically low number of new listings YOY — the fewest in over a decade — the more significant trend may be the September increase, which aligns with patterns seen in pre-pandemic years.

Ralph’s Take

The key question is — how will the upward trend of new listings between August and September impact the market this month? Westchester County has typically had a significant drop in new…

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Are ‘Baby Boomers’ Creating Housing Gridlock?

Are ‘Baby Boomers’ Creating Housing Gridlock?

A new report highlights that over half (54%) of Baby Boomer homeowners, aged 55 and older, have no plans to sell their homes, with only 15% considering selling within the next five years. The retention of properties, estimated at around 33 million, affects housing availability for younger generations, such as millennials, who are seeking to buy homes. Concerns among Boomers include 35% worried about finding a suitable home and 34% concerned about affordability.

• Boomers own about 38% of the homes in America.

• 85% do not plan to sell their home next year.

• 54% do not plan on ever selling their home.

• 66% of boomers who never owned a home regret it.

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This Year's Best Opportunity for Buyers

This Year's Best Opportunity for Buyers

Last week I gave local examples of why I expected this fall to be the best time to buy a home in 2024. This week Realtor.com offered their opinion that the best time to buy a home in our metro area is next week. Buyers can expect up to 37% more active listings compared to earlier in the year and potential savings of over $14,000 compared to the summer peak for a median-priced home of $445,000. Here’s their findings for the New York / New Jersey Metro Area:

• The best week to buy is Sept 15th - 21st

• Active Listings vs. Average: +14.0%

• Views per Property vs. Peak: -29.5%

• Days on Market vs. Peak: +13 Days

• Median List Price vs. Peak: - 5.6%

• …

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Is Now the Best Time to Buy in 2024?

Is Now the Best Time to Buy in 2024?

Fall is typically a quiet period for real estate but as we transition into this fall, we could see a shift in the market. Historically, home tours peak in the spring, but with interest rates set to drop in the coming months, experts are predicting we might see buyers and sellers act sooner. This year could bring a unique inversion with buyers actively shopping as mortgage rates hit their lowest levels since May 2023.

• The average 30-year mortgage rate hit a 52-week low today, at 6.27%.

• Buyer traffic is down -1.3% compared to the first week of the year, according to ShowingTime®.

• New Inventory: 103 single-family homes have been listed in Westchester since 9/1. In…

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