Economic Obstacles- Impact Westchester County's Residential Real Estate Market in 4Q 2022

The 4th Quater 2022

According to the National Association of Realtors, the national real estate market is facing economic headwinds as home sales have slid for the sixth consecutive month in November. Unfortunately, this trend is also reflected in Westchester County's residential real estate market, as the economic obstacles in housing sales are evident in the 4th quarter data.

In Westchester County, there has been a 12.6% decrease in units sold during the 4th quarter (October 1st to December 31st) of 2022, compared to the same time period in 2021. Specifically, 10,367 units were sold in the 4th quarter of 2022, compared to 11,866 units sold in the 4th quarter of 2021. Despite this decrease in transactions, Westchester County still boasts the highest median sales price with an uptick of 4.5% or $815,000 per home, compared to the 4th Quarter of 2021 which had a median sales price of $780,000.

Furthermore, condo sales for the 4th quarter in Westchester dropped -25.5% below the 4th quarter sales in 2021. The decrease in transactions and condo sales in Westchester County highlights the economic headwinds currently facing the residential real estate market.

However, there is a silver lining as mortgage interest rates have been trending downwards. Currently, the 30-year fixed rate is 6.989% and the 15-year fixed rate is 5.844%. According to Quicken Loans, there are reports that by the end of 2023, mortgage rates will have receded further, making it an opportunity for home buyers.

All of this data and information has been provided by the National Association of Realtors and mortgage rate information has been provided by Quicken Loans🏡

The 3rd Quarter Fall Real Estate Market Update

 Hi Everyone,

I just wanted to give you the current end-of-the- 3rd quarter update on the real estate market in Westchester County.  

This summer the housing market continued to be very tight with limited housing inventory and prices for consumables such as food, oil, gas, and household items have remained high. I have attached the CPI chart so you can review it (St. Louis FRED CPI). House prices for single-family homes over that past year have increased. Many frustrated home buyers have had to consider the increase in mortgage rates and home prices to readjust their housing searches.  Also, as a result, many home sellers are unable to tap into the equity in their homes preventing them from moving forward with their next housing plans.  So the vicious housing shortage cycle will continue.

I want to point out that this does not mean that the current housing market is in a bubble and home prices will come crashing down. There will be a decline in home prices, however, 65% of the US population owns a home (Homeownership St. Louis Fred) where they are paying a mortgage rate of 3%. Also, keep in mind that 37% of that number (65%) of homeowners have paid off their mortgages completely.  

So, at this point, many homeowners are not under any pressure to sell their homes, meaning the housing inventory will remain tight.  

Please keep in mind that if there are large numbers of job layoffs and the unemployment numbers rise, people will be forced to sell their homes and increasing inventory will bring home prices down.

Current Mortgage Rates

In the town and city links below - you can toggle between different home styles Such as single family, condo, and Co-op to see how that property type is doing in the current market.

Below are the clickable links that show the price points of houses, condos and co-ops in all the communities in Westchester. Lower Westchester City of Yonkers Tuckahoe Bronxville Mount Vernon Pelham New Rochelle Eastchester Larchmont Mamaroneck Scarsdale Ardsley The Rivertowns Hastings on Hudson Dobbs Ferry Irvington Tarrytown Sleepy Hollow Ossining Briarcliff Manor Central Westchester White Plains Harrison Rye Rye Brook Port Chester Greenburgh Mount Pleasant Elmsford North Castle Pleasantville Northern Westchester Peekskill Croton on Hudson Cortlandt Buchanan Yorktown New Castle Mount Kisco Bedford Pound Ridge Lewisboro North Salem Somers

Discover the beauty and history of the New Croton Aqueduct on a scenic walk

CROTON AQUEDUCT

A Great Escape from NYC  

Did you know that you can take a scenic walk across the New Croton Aqueduct in New York City's watershed area? Located in upstate New York, this reservoir supplies the city and lower state with drinking water. While it may be one of the smaller reservoirs in the area, it still covers 28.5 square miles and holds an impressive 10 billion gallons of water. It's said that a cup of water can take up to 12 years to travel from the aqueduct to NYC, though this has not been officially confirmed.

One of the most impressive features of the New Croton Aqueduct is its dam, which stretches 1200 feet long and stands 170 feet high. The top of the dam is 23 feet thick, while the base is a massive 116 feet thick. The lake itself is 170 feet deep, with the water level sitting 330 feet above the high-water mark in NYC. Alongside the dam is a spillway that measures 250 feet in length.

If you're looking for a peaceful and socially distant outdoor activity, consider a visit to the New Croton Aqueduct. To get there from White Plains, take Route 684 north and exit at Route 35. Follow the road and park in the lot on Reservoir Road off of Route 22. The walk is only about 35 minutes from White Plains.

If you have any real estate needs in the area, don't hesitate to give me a call at (914) 755-9816.