Westchester County NY Real Estate Blog - Pricing

Will Housing Affordability Improve?

Will Housing Affordability Improve?

Housing affordability in the United States experienced a slight improvement last year, marking the first positive shift in four years. A household earning the median income of $83,782 would have allocated 41.8% of their earnings toward monthly housing costs for a median-priced home, a modest decrease from 42.2% in 2023. Despite this progress, affordability remains significantly strained compared to the 30% threshold commonly deemed manageable.

Ralph’s Take

Will housing affordability improve in 2025? It’s difficult to predict, but mortgage rates are likely to play a key role. In 2024, the average mortgage rate was 6.72%, a slight dip from 6.87% in 2023. While modest, this reduction…

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NAR Chief Economist Forecasts 9% Bump in Home Sales

NAR Chief Economist Forecasts 9% Bump in Home Sales

At the National Association of Realtors® (NAR) NXT conference, Chief Economist Lawrence Yun projected a 9% increase in existing home sales for 2025, followed by a 13% rise in 2026. He also anticipates new home sales to grow by 11% in 2025 and 8% in 2026. Yun attributes these forecasts to expected stabilization of mortgage rates around 6%, ongoing job market growth, and an increase in housing inventory compared to the past five years. Additional points:

• Household equity at a record high

• Expect 6 to 8 interest rate cuts

• Mortgage rates to stabilize between 5.5% and 6.5%

Ralph’s Take

While Yun’s forecasts are optimistic, I hold a little…

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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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What is My Home Worth? Part 3

What is My Home Worth? Part 3

In today’s edition, we’ll wrap up my three-part series on pricing a home for sale. We explored how to assess your property’s key details and how to find the right sale comps. Now, in Part 3, we’ll dive into crafting the perfect pricing strategy.

3. Developing a Pricing Strategy

Pricing is crucial in any market for attracting the right buyers. Our goal is to set an asking price that is competitive, attractive, and psychologically appealing to buyers. Here are a few strategies we use:

• Pricing slightly below market value: This strategy works best when there’s a high demand for homes similar to yours and when you expect multiple interested buyers. However, it should be…

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What is My Home Worth? Part 2

What is My Home Worth? Part 2

Accurately pricing a home is both an art and a science, and it's something I've honed over the years. Today, I'm sharing the second part of my three-part series on how I price a home for the market.

2. Gathering Comparable Sales Data

Comparable sales data is essential for accurately pricing a home because it reflects the current market conditions. We evaluate comparable properties in three key categories: Sold, Pending, and Active listings. For each category, we analyze the following data:

• Average Price: For Sold, Pending, and Active listings.

• List-to-Sold Price Ratio: Indicates market dynamics.

• Days on Market: Reflects demand levels.

• Number of Price…

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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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Is The Housing Market Really Stabilizing?

Is The Housing Market Really Stabilizing?

One of the ways to measure the balance between supply and demand in real estate is to use the ‘Months Inventory of Homes for Sale’ metric. It represents the number of months it would take to sell all the homes currently on the market if no new homes were listed.

National: Months’ Supply of Homes for Sale

National View: Inventory is starting to grow, a sign that the market could be starting to balance out. Month’s supply was at 4.0 for July. According to Lawrence Yun, the Chief Economist at the National Association of REALTORS, said this week, “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and…

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8.5% of U.S. Homes are Worth $1 Million or More

8.5% of U.S. Homes are Worth $1 Million or More

A Redfin report reveals that 8.5% of U.S. homes are now valued at $1 million or more, a significant increase driven by limited housing inventory and high mortgage rates. This trend is particularly pronounced in coastal cities, with nearly half of all homes in some California cities reaching the million-dollar mark.

• Increase driven by severe shortage of home inventory

• Nearly 1 in 10 U.S. homes are now valued at $1 million or more

• Million-dollar homes more than doubled since the pandemic

Ralph’s Take

The rise in million-dollar homes reflects growing economic disparities and highlights the increasing difficulty for average buyers to…

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