Is It Inflation? Interest or Inventory- the 3I's

Westchester County- Real Estate Outlook

The real estate market in the New York City/Lower Hudson Valley region is facing significant challenges due to a negative trifecta of high inflation, mortgage interest rates, and low inventory. This combination is putting a dent in home buying sales volume, and the situation is unlikely to change soon. Single-family home prices values continued to rise in the first three months of this year in some markets, but indications are that regionwide, single-family home sales values may have reached their cyclical highs.

Westchester County is one of the areas that is feeling the effects of the negative trifecta. The county had a decrease in residential sales of 32.7%, and it saw a 33% decline in single-family sales in the first quarter of 2023 compared to the same period the previous year. However, single-family median sales prices continued to rise in the first quarter in Westchester County, with a 4.3% increase to $760,000.

Despite the challenging conditions, falling mortgage rates are creating opportunities for many buyers. On April 13, NAR Chief Economist Lawrence Yun noted that the average rate on a 30-year fixed mortgage fell to 6.27% from 6.28% the previous week. He also predicted that with inflation moving closer to the Fed’s 2% target, mortgage rates are expected to decrease further in the coming months, likely dropping below 6% by the end of the year.

This decrease in mortgage rates should improve conditions somewhat. Yun related that if rates drop to 6%, “3.1 million more households will once again be able to afford to buy the median-priced home compared to the beginning of the year. And, one in three of these households are younger than 40. Last year, one in five mortgage purchase originations had a rate higher than 6%.”

Overall, the New York City/Lower Hudson Valley real estate market is facing significant challenges due to a negative trifecta of high inflation, mortgage interest rates, and low inventory. However, falling mortgage rates provide some relief to buyers, which could result in a boost in sales volume. Nevertheless, it remains to be seen whether this will be enough to turn the tide and reverse the declining sales trend.

Monday, April 10, 2023

🏡 HarrisX survey and Realtor.com on the sweet spot to sell a house- A Must Real for Home Sellers

🏡 April 16th is the Sweet Spot to bring you home on the market!

When Should You List Your Home?

As we enter the spring season of 2023, Westchester is facing a notable shortage of inventory especially with single-family homes, which is hindering people from downsizing or upsizing to their desired homes. The situation is compounded by the fact that many homeowners who could sell their properties are holding back due to their low-interest mortgages, and they are hesitant to acquire a new mortgage with a higher interest rate. TPostshese two factors are contributing to the current inventory problem. Nevertheless, homeowners who are listing their homes on the market are receiving the highest bids for their properties.

Now is the Time to sell!

Realtor.com and HarrisX's recent survey found that homeowners who list their homes for sale during April 16-22, 2023, could achieve higher prices, faster sales, less competition, and higher demand. Historically, homes listed during that week typically had prices 2.1% higher than the average week throughout the year and had prices 12.1% higher than the start of the year. Additionally, the homes are expected to sell faster and have fewer competitors. The report advises homeowners to make repairs and updates, declutter and find an agent to help them if they want to prepare their homes for sale. I have written a few posts about getting your home ready to put on the market and those links are below. Please check them out.