2009 Semi Annual Letter

Posted on Tuesday 30 June 2009

Semi-Annual 2009 Bronxville Area Market Summary

 

Volume in Bronxville Village is down approximately 65% YTD and the Median home sale price is down 12.2%.

 

The real estate market in Bronxville, and throughout Westchester, continued to be challenged through the first half of 2009.  Through June 29, 2009, volume in Bronxville Village is down approximately 65% (20 transactions closed in 2008 YTD vs. 7 closed in 2009). For the entire Bronxville P.O. market, volume is down 50%.  Based on the limited number of transactions, the average home sale price in Bronxville Village is down only 2.5% where as the median price in Bronxville is down 12.2% (based on per square foot numbers).  Due to the limited number of transactions, we will not have an accurate picture of home price trends in Bronxville until volume increases. Other area markets have had more closed transactions than Bronxville due to their size and their performances have been mixed.  As an example, volume is down 50% in Rye and the average home sale price in that market is down 14.0%.  In Scarsdale, prices are down less than 6.2% and volume is only down 20%. 

 

Interesting Trends in the first half of the year

 

Clearly the spring of 2009 has been a very interesting market.  Following are some notable observations.

·         Surprisingly, across the area markets including Scarsdale and Rye, there have been high end sales occurring (i.e. the high price for a home in Bronxville Village, Bronxville P.O./Yonkers, Scarsdale and Rye was as high or higher in 2009 than in 2008).  In Bronxville Village the highest price paid for a home in 2008 was $4.15 million.  In the first half of 2009 there was one closed sale for $5.0 million and there is another home that was listed for $5.3 million which is currently pending.  It appears that the higher end home buyers ($2.0 million+) continue to have liquidity and are looking for value.

·         The homes that have sold this year or gone under contract have generally been homes in pristine condition that represent good value.  Buyers, due to the constraint of capital, are much more reluctant to take on home renovation projects that require a down payment for purchase plus additional money for a renovation.

·         There are currently 40 homes (including town homes) on the market for under $2.0 million.  Inventory remains high at this price level as many potential buyers in this price range have lost money in the stock market which was intended for down payments.  Generally, potential buyers in this price range were more sensitive to selling their existing residence before purchasing a new one and have great job security concerns. 

·         The Bronxville market as well as the other Westchester markets experienced a strong increase in rentals.  Potential buyers leaving Manhattan or relocating from other areas generally could not sell their primary residences and opted to rent versus buy.  Potential buyers that rented in New York City but have moved to Bronxville decided to rent to better understand the market and to “test drive” the suburbs.

·         Financing is clearly more difficult and obtaining financing requires a greater down payment.  Deals that were done in 2007 and 2008 with 95% financing are not do-able in this market.  Banks are often requiring 25%-30% down which is limiting for many buyers. 

 

Prospects for the remainder of 2009 and 2010

·         There are currently 63 total homes on the market in Bronxville which is a significant amount of inventory considering that we are in the latter part of our traditional spring selling season.  Clearly, the elevated inventory levels will limit prospects for price appreciation in the latter part of 2009 and into early 2010.

·         The Bronxville market is very dependant on the health of the New York economy and its job prospects.  After setting new lows in the stock market in March, confidence in the area economy and the stock market has improved.  We have seen a late spring increase in bidding activity and deals getting done which is encouraging.  Unfortunately, it appears to have come very late and many potential buyers have decided to put off buying activity until next year.  Buyers are putting off their buying decisions either due to a need to register children for schools or in order to save money for a down payment and get more clarity on their future incomes.

 

Conclusion

·         I am always encouraged after taking potential buyers around Bronxville as they marvel at the beauty of the town and can feel the great community of Bronxville. I continue to hear great things about the reputation of the school, especially after prospects have taken a tour.  When there is more confidence in the market and volume increases, buyers will continue to be attracted to Bronxville.  The depressed stock market and job/income insecurity has limited buying activity but hopefully those issues will dissipate over time as the economy gets back on its feet.

·         Currently, Bronxville as well as most Westchester real estate markets are experiencing a spread between buyers and sellers expectations that has resulted in few deals getting done.  Hopefully, with greater clarity on the economy and the direction of home prices, the real estate market will regain its equilibrium.

 

 

 

Administrator @ 3:54 am
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First Quarter 2009 Market Update

Posted on Wednesday 29 April 2009

 

First Quarter 2009 Market  Summary

 

The real estate market in Bronxville, and throughout Westchester, has been very challenged in the first quarter of 2009 — but it does feel like there are positive signs of recovery.  Thus far in 2009 volume is down approximately 50% and prices are down in the range of 15%-25% depending on price point, location and condition of the home.

 

Based on limited numbers, the volume of sales in Bronxville and in Westchester is tracking at 50% of 2008 levels.  The cause of the dramatic decline in volume is the lack of buyer confidence due to the volatility on Wall Street and the uncertainty surrounding the U.S. economy.  Currently, inventory is high but manageable in our area (53 homes are on the market in Bronxville Village and 45 homes sold last year).  If sales do not accelerate in the next few months, we will have high inventory levels in late 2009 and early 2010.

 

There clearly have not been enough sales to determine, with confidence, where average home sale prices are currently but based on limited local sales and national trends it seems the market is down in the 20% range from peak 2007 levels.  Homes selling for under $1.0 million have been more resilient.  These homes have a broader buyer base and have benefited from lower conventional mortgage rates.

 

There are positive local and national signs indicating that we are working our way through a very tough real estate market.

 

Local Trends
  • Buyer traffic for listed homes has been strong, which means that buyers are in the market.
  • I do see an influx of Manhattan families looking at Bronxville due to the high and increasing cost of New York City private schools.
  • Bronxville School tours are strong as well reflecting potential buyer interest.
  • There is significant pent up demand from buyers who have delayed buying decisions due to the market uncertainty.
  • Lower listing prices seem to have encouraged potential buyers. 

 

 

National Trends
  • The stock market is off its lows due to positive news from banks and new government initiatives to rid bank balance sheets of toxic assets.
  • Existing home sales nationally have increased recently which means that buyers are buying (i.e. foreclosures are getting worked through) which is the beginning of a recovery.
  • National housing starts (new construction) were up 22% which indicates there is some confidence in the market going forward.
  • Many believe that mortgage rates for the 30-year conventional mortgage (under $417,000) will settle in the 4.5% level —  rates are already at historical low levels.  This should spur sales especially for homes below $1.0 million.   In addition, the recent government initiatives should increase the willingness of banks to lend in the jumbo mortgage market.
  • The home affordability index is coming much more in line with the historical trend which is good for national housing sales.

 

Where is the spring market?

 

  • Thus far we have had a lot of looking and not much buying hence limited liquidity in this market.  There are two key factors for getting homes sales moving.
  • First, buyers need to have confidence in their wealth, jobs and incomes.  There are buyers looking but many are very nervous about the direction of the markets.  The more evidence we have of a bottom in the markets the more confidence buyers and sellers will have in making major investment decisions.
  • Most importantly, the significant spread between buyers’ and sellers’ expectations needs to narrow.  There have been very few sales so sellers are not certain of their home’s fair market value. Buyers have been concerned that we have not hit the bottom and thus want a price to reflect the uncertainty in the market.  Hopefully, recent positive events will give buyers the confidence to present offers and sellers will adjust their pricing expectations to reflect recent events.

 

The period between Easter and the beginning of summer will be a critical time in the Bronxville area market.  Many buyers in our market are driven by school decisions so if we are going to have a spring season it needs to happen soon.

 

Sincerely,

 

 

Sheila Morrissey Stoltz

Administrator @ 6:12 am
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2008 Year End and 2009 Outlook

Posted on Monday 5 January 2009

The Stoltz Reports

2008 Market Commentary/2009 Outlook

 

2008 Market Summary

 

On a positive note, home sale prices in the Bronxville P.O. markets were down only 1.7 % to 6.7% in 2008, which is very good considering the 10+ years of price appreciation we have seen and given the Wall Street meltdown we all experienced.  However, the volume of transactions in the Bronxville P.O. markets were down anywhere from 16.7% to 50.0%.  We did not see forced distressed sellers in 2008 or totally motivated buyers.  A meaningful pricing gap existed between sellers and buyers.  Sellers wanted pricing levels seen in years past and buyers felt the constraints of a slower economy and higher jumbo mortgage loan rates.  Buyer activity came to a complete halt after the financial crisis hit in mid-September.  The new Spring 2009 market will be telltale in defining the current valuations for real estate in the “Bronxville Area” markets (defined to include the Bronxville Village area, Bronxville P.O./Yonkers area, and Bronxville P.O./Cottle schools).

 

Here are the summary and specific statistics for the Bronxville Area markets:

     Unit Volume                         Average Home Sale Price

 

 

 

Price Per SF

2007

2008

% Chg

 

2007

2008

%Chg

 

2007

2008

% Chg

 

 

 

 

 

 

 

 

 

 

 

Village Houses 

42

35

-16.7%

$2,427,352

$2,147,943

-11.5%

$659

$648

-1.7%

VillageTownhouse

19

10

-47.4%

$1,002,946

    $912,045

  -9.1%

$547

$510

-6.7%

P.O./Yonkers

54

27

-50.0%

  $ 906,593

    $760,981

-16.1%

$349

$342

-1.8%

P.O./Cottle School

25

20

-20%

$1,200,332

$1,167,150

  -2.8%

$396

$387

-2.2%

 

2009 Outlook

 

Based on the activity in 2008 and recent events, I have some preliminary thoughts on the 2009 Bronxville Area market:

 

  • Bronxville Area home values will be down 10%-20% in 2009.  Several of the transactions that were pending when the stock market collapsed in the fall were either renegotiated or the buyers walked away from their 10% deposits.  This phenomenon occurred in the Bronxville Area, the New York City market, and elsewhere.  Buyers’ willingness to walk away from 10% deposits indicates that the market is already down more than 10%.

 

  • The Bronxville Area market, due to proximity to New York City, the lack of new housing supply and our top ranked schools will continue to be more resilient than many markets across the country.  The 10-year compounded annual growth rate (CAGR) for the average home sale price in the Bronxville Area market has been 8.6% as compared to the Case-Shiller New York Metro Index which has a 10-year CAGR of 7.8% and the Case-Shiller 10-City Index which has a 10-year CAGR of 6.6%.

 

 

Bronxville Area Compared to Case-Shiller Indices

 

  • Expect higher-end homes to have a thinner market in 2009.  The highest sale price in 2008 was $4.15 million as compared to 2007 when the highest sale price was $6.65 million.  The weakness at the high-end of the market occurred across the entire Bronxville Area markets.  Homes under $1.0 million should be more resilient and will also benefit from the very attractive conventional mortgage rates being offered.
  • Volume will continue to be lower than the historical average, but hopefully will be higher than in 2008.  Many buyers and sellers will delay transactions in this market.  Buyers that previously sought to upgrade their housing situation within Bronxville will be more likely to postpone moving, and the simultaneous sell/buy transactions will dramatically slow down.  Demand for housing in the Bronxville Area will be more driven by changes in housing needs due to school considerations and corporate relocations.
  • The Bronxville Area will benefit from increased New York City buyer activity due to education considerations.  Due to the changing economic climate in New York City, the increasing taxes and cost of living in New York City, and the escalating cost of private school education, many families will investigate other attractive school alternatives outside of New York City, which should benefit the Bronxville Area.
  • Inventory of homes for sale in the Bronxville Area markets is very manageable at this point.  In many parts of the country, where new construction exists, inventory levels are very high.  In the Bronxville Area, inventory of homes for sale is on average at only 9 months of sales volume (assuming 2008 sales volume levels).  Manageable inventory levels will help support prices in the Bronxville Area in 2009.

 

We are all living through challenging markets both on Wall Street and within our real estate markets.  Determining market values is very difficult at this point due to the lack of activity.  I do think that due to the low transaction volume there is pent up demand from buyers and sellers.  Also, the U.S. Government has gone to great lengths to bring back confidence and liquidity into the financial markets, which will translate into increased volume in the real estate market.

 

I hope this summary and thoughts for 2009 are helpful.  Please let me know if I can provide any additional advice on these market dynamics.  If you would like any specific market information please feel free to contact me at (914) 310-6220 or email me at sstoltz@houlihanlawrence.com.

 

Sincerely,

 

Sheila Morrissey Stoltz

Associate Broker

Administrator @ 4:08 am
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Broxnville Represents a Flight to Quality

Posted on Monday 29 September 2008

Bronxville Represents a Flight to Quality!

The Good News

Through September 2008, the Bronxville area markets have performed remarkably well.  The positives supporting our market include the small size of the market, the highly ranked schools, proximity to New York City, and the great charm and appeal of the Village.  Year-over-year,  the number of transactions closed is down 25% but prices for single family homes in Bronxville Village are down only 3% on a per square foot (psf) basis and townhomes in Bronxville Village are down only 5.5%  psf.  The average price for a home in Bronxville Village was $2.1 million through September 2008 verses $2.5 million through September 2007 and the average price for a townhome in Bronxville Village in 2008 was $912,045 verses 1.0 million in 2007.    The aggregate prices were down more than the psf prices due to the relatively smaller homes sold in 2008 than in 2007.

Single Family Homes                         2007                                        2008

Prices as of September 29th        $2,489,324                              $2,107,290

Price Per Square Foot (psf)          $672                                        $652

Number of Transactions                38                                            31    

Town Homes                         

Prices as of September 29th          $1,011,175                              $912,045

Price Per Square Foot (psf)            $540                                        $510

Number of Transactions                  17                                            10    

Prices for properties are basically back to 2005 levels which is very good considering the impressive price appreciation the area has experienced over the past decade.  Other area markets in the Bronxville area are experiencing a similar trend of lower volume but steady prices.

The Less Good News

There are currently 35 homes and townhomes on the market in Bronxville Village with an average price of $2.6 million or $734 psf.  The inventory is high for this time of year when we expect fewer transactions and the current inventory is priced on the higher-end of the pricing spectrum.  There are currently nine homes on the market priced above $3.0 million.  In 2007, seven homes traded over $3.0 million for the entire year.  Price adjustments will be necessary in order to move the current inventory in this market. 

Due to the great volatility on Wall Street in the past month, showings in September were extremely low with only three showings per listing as compared to five showings per listing for the same period in 2006 and 2007.  Most buyers are postponing looking and buying until there is more clarity on Wall Street.  

Looking Forward to 2009

Due to the market upheaval and the ordinarily slow fall season, we are all looking forward to 2009.  It is likely that softness in the real estate markets will continue into 2009 as we work through existing inventory and digest the turmoil in the financial markets.  Sellers are postponing listing their homes unless necessary due to the slow time of year.  Buyers are putting off buying decisions until there is more clarity on Wall Street.  At some point sellers need to sell and buyers need to buy.  I think we will see increased transaction volume in Spring 2009.

A Flight to Quality Will Mean Good Things for Bronxville

Bronxville will fare well in the current difficult market for a number of reasons:

The Valuation Spread between Bronxville and New York City will attract more buyers to Bronxville

The average psf price for a Co-op in Manhattan at the end of June was over $1,200 psf and Condominium sales were in the $1,400 psf range.  The average price in Bronxville Village is in the mid $600 psf range.  Prices in New York City are sure to soften but I do think the lower incomes and reduced wealth in New York City will make more buyers consider the nearby suburbs. 

The cost of private school education in the K-12 years will be very onerous with lower incomes on Wall Street

The prospect of sending a child or children to private schools that costs $30,000+ a year will be much more onerous with lower incomes and decreased wealth in the New York City area.  The option of having a highly ranked public school system, such as Bronxville, will be very appealing to many buyers looking for great education alternatives and lower cost structures.

New York City will have budget issues and will likely need to raise taxes

Bronxville already attracts a significant number of buyers from New York City trying to save on New York City taxes.  The developing budget issues in New York City and the potential tax increases are only going to exasperate this situation.

Outlook

Over the next few months buyers and sellers will come to terms with their financial position and then start making decisions about home ownership.  I do believe it will be very busy this spring as those who put off decisions finally act.  Prices should be softer in the near term but I do think the Bronxville real estate market does represent a flight to quality and will do better than most markets in this volatile time.

Administrator @ 7:39 am
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September Market Update

Posted on Thursday 4 September 2008

SEPTEMBER MARKET UPDATE

Welcome Back! Hope you had a great summer. I think it will be a very busy fall in the Bronxville Area Real Estate Market.

Recent Statistics

The Spring season in 2008 came rather late so we had a lot of closings in the July and August time period. Based on sales from 1/1/08 through 9/1/08 sales volume is down approximately 15% and home sale prices (on a per square foot basis) are down less than 5% which is very encouraging considering home sale price declines in other markets and the years of strong price appreciation this market has experienced.

Showing Activity

Showings in our office during July and August were very consistent with last years activity for the same time period and we had a similar number of listings. I think the showing activity is very encouraging. Buyers have been looking and holding off on purchasing due to economic uncertainty but I do feel there is pent up buyer demand.

Mortgage Rates

Mortgage rates for the 30 year jumbo fixed mortgage remain in the 6.75% range to the 7% range depending on size. The credit of the buyer continues to be a significant factor as well. In addition the rates quoted by various banks vary significantly depending on whether the bank is trying to sell the securities in the secondary market or whether they have the flexibility to hold them on their own balance sheet.

Recent Activity

Activity in August was as follows:

NEW

66 Kensington, a 3 bedroom 2 bath townhouse came on the market for $799,000 ($613 psf)

13 Bacon Court, a 4 bedroom townhouse came on the market for $1,395,000 ($526 psf)

58 Hewitt Ave, a 3 bedroom home in the Bronxville P.O./Cottle market came on for $629,000 ($349 psf)

 SOLD

52 Summit Ave, a 5 bedroom home in Bronxville Village, sold for $2,197,000 ($666 psf)

9 Hobart, a 5 bedroom home in Bronxville Village, sold for $1,680,000 ($596 psf)

29 Studio Lane, a 4 bedroom home in Bronxville Village, sold for $1,950,000 ($590 psf)

12 Orchard Place, a 5 bedroom home located in Bronxville Village, sold for $3.0 million ($857 psf)

125 Pondfield Road West, a 7 bedroom home in Cedar Knolls, sold for $928,000 ($284 psf)

102 Dellwood Road, a 4 bedroom home in Cedar Knolls, sold for $1,280,000 ($353 psf)

All my best. Sheila

Administrator @ 10:51 am
Filed under: uncategorize
2008 Semi Annual Bronxville Area Market Summary

Posted on Wednesday 2 July 2008

SEMI-ANNUAL BRONXVILLE AREA 2008 MARKET UPDATE

Sales Volume down 30% and Prices down 6% in Bronxville 10708

All of the Bronxville area markets, including the Bronxville Village, Bronxville P.O./Yonkers, Bronxville P.O./Cottle markets, experienced dramatically lower sales volume due to the problems on Wall Street, higher costs of commodities, and higher mortgage rates.  The average home sale prices were more mixed with certain markets seeing modest gains in pricing and other markets experiencing price declines.  There are currently 95 homes for sale in Bronxville 10708, which is a high number considering the time of year and the lower transaction volume.  The segment of the market that appears to be the weakest is the higher end of the market (i.e. $4 + million homes). 

The Bronxville Village market has experienced the most softening in the area. In the first half of 2008 only 20 transactions closed, as compared with 30 closings in the first half of 2007.  Average Home Sale Prices have declined approximately 9.7% on a per square foot basis. There are 20 transactions currently under contract and scheduled to close over the summer which is encouraging.  The second half of the year will be very telling for the higher end of the market.  There are currently 40 homes for sale in Bronxville Village with an average asking price of $2.5 million or $759 psf (with the average sale price per square foot in first half of 2008 being $623 psf). 

Mortgage rates have increased during the first half of 2008, and underwriting standards have become more stringent even in the past six weeks as banks tighten the extension of credit even to qualified borrowers.  Mortgage rates are quite volatile and depend greatly on buyer credit, loan sizing and the lending institution involved.

On a positive note, the Bronxville 10708 area has weathered the real estate weakness well relative to other markets, and the home sale inventory levels are still reasonable. The Bronxville area real estate market remains stable and is still very competitively priced relative to the New York City market.

                                                                                  Bronxville 10708

Market Statistic Through June 30th                       2007                            2008

Total Transactions                                                    67                           47

Average Sale Price                                                $1,522,571        $1,353,777

Average Price Per Square Foot                               $522                      $493

Days-on-Market                                                     167                        191

Administrator @ 6:32 am
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2007 Year End Review and 2008 outlook

Posted on Saturday 5 January 2008


I am pleased to present the 2007 Bronxville Area Year-End Review and 2008 Outlook, including data on the Bronxville Village, Bronxville P.O./Yonkers and Bronxville P.O./Cottle markets.  IF you would like detailed graphs and other data on the markets please contact me at sstoltz@houlihanlawrence.com

2007 Market Overview

The Bronxville real estate market experienced a relatively strong year of price appreciation and stable sales volume.  Our market was not materially impacted by the national trend of falling prices and escalating inventories.  Bronxville had several key factors that supported its real estate market in 2007. 

  • First, our market clearly benefited from its close proximity to the Manhattan real estate market, which performed well in 2007.  Families leaving Manhattan continued to take advantage of comparatively lower real estate values in suburban markets such as Bronxville.  
  • Second, with an average Bronxville area home sale price of over $1.4 million, difficulties which sub-prime borrowers found in obtaining mortgages did not impact the broader Bronxville market.  
  • Third, there is little opportunity for new construction in Bronxville to ever materially impact the supply of homes in Bronxville.  
  • Finally, our market benefited from the strong Wall Street bonuses paid in early 2007 and the fifth straight year of positive returns for many stock market indices.  Below is a historical view of Average Home Sale prices in this area:

2007 Market Statistics

The Average Home Sale Price in the Bronxville area, including Bronxville Village, Bronxville P.O/Yonkers and Bronxville P.O/Cottle, was $1.43 million ($492 per square foot).  The lowest price paid for a home was $450,000 and the highest price paid was $10.5 million (the $10.5 million sale was not included in the multiple listing service and is therefore not included in the averages).  The Average Sale Price in Bronxville Village, including town homes, was $1.98 million ($639 psf) as compared to $1.80 million ($601 psf) in 2006.  There were 61 homes sold in 2007 as compared to 67 homes sold in 2006.  The Average Sale Price in the Bronxville P.O./Yonkers area was $.88 million ($345 psf) as compared to $.90 million ($326 psf) in 2006.  There were 52 homes sold in 2007 as compared to 43 homes sold in 2006.  The Average Sale Price in the Bronxville P.O./Cottle market was $1.2 million ($395 psf) as compared to $.96 million ($374 psf) in 2006.  There were 25 homes sold in 2007 as compared to 28 homes sold in 2006.

2008 Outlook

As summarized above, the Bronxville area markets had a relatively strong year in 2007.  I anticipate a stable Bronxville real estate market in 2008 despite the negative price and inventory trends nationally.  My primary reasons for this view are that home inventory for sale remains relatively low and mortgage rates remain at historically attractive levels for qualified borrowers.  In addition, year-end Wall Street bonuses for 2007 appear to be marginally better than anticipated leading to some confidence among buyers.

Possible issues for Bronxville real estate values in 2008 include the performance of Wall Street firms and their stock prices, potential for layoffs and lower bonuses in the financial service industry, and continued stock market volatility.  Of course, if interest rates increase appreciably or if the ability for Bronxville buyers to access the mortgage market diminishes, the Bronxville real estate market would likely be impacted negatively.

Most importantly, conditions remain in place for the Bronxville area real estate market to continue to perform well in the New Year.  Bronxville will always benefit from its close proximity to Manhattan, from being the small charming Village that it is, and having highly regarded school system.  I look forward to a very active 2008.

I hope this report has been helpful to you.  If you would like to receive my year-end report detailing more property specific data or to be added to my weekly market update email list please contact me at sstoltz@houlihanlawrence.com or (914) 310-6220.

Sheila M. Stoltz         

Administrator @ 12:26 pm
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November Monthly Market Update

Posted on Friday 7 December 2007

November Monthly Market Update.

 

The Bronxville real estate market in November continued to be busy.  Inventory declined in November as compared to October as purchasers continued to be active and less new supply came on the market.  Closings picked up in November after being uncharacteristically low in October reflecting the recovery from the credit crunch that impacted the market in August 2007. I would expect inventory to continue to decline in December but for the market to be relatively slow as buyers and sellers focus on the holiday season.

 

In the Bronxville Village market, 4 homes closed in the month of November for an average price of $1.8 million or $535 psf as compared to November 2006 when 1 home closed for $2.0 million or $599 per square foot.  At the end of November, in Bronxville Village, there were 25 homes on the market for an average price of $1.7 million.

 

In the Bronxville P.O., including Bronxville Village, Bronxville P.O/Yonkers and Bronxville P.O./Cottle Schools, 10 homes closed in November at an average price of $1.3 million or $454 per square foot as compared to a year ago November when 4 homes sold for an average price of $801,200 million or $320 per square foot.  As of the end of November, in the Bronxville P.O. market, there were 64 active homes on the market for an average price of $1.5 million.

 

If you would like individual property information or if you would like to be included on my weekly email update please email me at sstoltz@houlihanlawrence.com.

 

All my best,

 

Sheila

Administrator @ 8:21 am
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Bronxville Area October Monthly Update

Posted on Tuesday 6 November 2007

October Monthly Market Update.

 

The Bronxville real estate market in October continued to be very busy.  Inventory declined in October as compared to September as purchasers continued to be active and less new supply came on the market.  Closings we uncharacteristically low in October reflecting the credit crunch that impacted the market in August 2007.

 

In the Bronxville Village market, no homes closed in the month of October as compared to October 2006 when 3 homes sold for an average price of $2.0 million or $599 per square foot.  At the end of October, in Bronxville Village, there were 23 homes on the market for an average price of $1.8 million.

 

In the Bronxville P.O., including Bronxville Village, Bronxville P.O/Yonkers and Bronxville P.O./Cottle Schools, 4 homes closed in October at an average price of $1.1 million or $339 per square foot as compared to a year ago October when 10 homes sold for an average price of $1.2 million or $421 per square foot.  As of the end of October, in the Bronxville P.O. market, there were 71 active homes on the market for an average price of $1.4 million.

 

If you would like individual property information or to be included on my weekly email update please email me at sstoltz@houlihanlawrence.com.

 

All my best,

 

Sheila

Administrator @ 7:36 am
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Market Update — September, 2007

Posted on Thursday 6 September 2007

Bronxville Area Market Quarterly Update

 

For the first half of 2007, the real estate market in the Bronxville area has been remarkably robust.  The New York City market continues to see price increases and strong volume which has supported higher prices in our market despite the national trends that reflect a softening real estate market. All of the Bronxville area markets experienced stable to increasing sales volume and stable to increasing prices this year.  One exception was the Bronxville P.O./Yonkers market which experienced a price decline.

   

Area Summary Statistics

 

The Bronxville P.O. area, including Bronxville Village (school district), Bronxville P.O./Yonkers and the Bronxville P.O./Cottle School area, has experienced strong price performance year-to-date.  The average home sale price was $1.5 million, or $515 per square foot, through August 20, 2007.  The average price during the same period in 2006 was $1.4 million, or $499 per square foot.  Volume was relatively flat with 92 transactions in 2007 and 95 transactions in 2006.  Below are the average homes sale prices for each area through August 20, 2007.

 

                                                                 2007                            2006

 

Bronxville Village                               $2.10 million               $1.71 million

Bronxville P.O./Cottle                        $1.25 million               $1.23 million

Bronxville P.O./Yonkers                     $  .83 million               $  .92 million

 

 

These sales statistics are very strong, especially considering the strength of the market in the preceding three years.

 

Recent Market Conditions

 

The above sales figures represent transactions that were mostly under contract by late spring or early summer.   Since that time, market conditions have changed due to the upheaval in the mortgage markets. 

 

The interest rate on the jumbo 30-year fixed rate mortgage was approximately 6.75% as of June 30, 2007.  On August 20, the rate for the same mortgage product was 7.75%.  In addition to the change in rates, underwriting criteria have changed, making it more difficult to obtain financing.  The change in the credit market impacts the general real estate market in two important ways.  First, rates have increased — especially for jumbo mortgages, which will impact how much buyers can pay for homes.  Secondly, due to tighter underwriting criteria (higher credit scores, lower  loan-to-value requirements, no more 100% loan-to-value mortgages, limited no income verification loans, etc.) there will be a segment of buyers who will be unable to obtain financing, limiting the number of buyers in the market.

 

 

Credit Market’s Impact on the Bronxville Real Estate Market

 

The Bronxville area is relatively insulated but will likely still be affected by the change in the credit markets.  Our market has generally attracted good credit buyers who could afford significant down payments and buyers who are generally much less payment sensitive than the national market.  This is especially true at the higher end of the market.  Below the high end, buyers tend to be more payment sensitive and therefore impacted by the higher rates — and deals that were done with buyers using 100% financing will not be an option in this market. In the short term, there will be marginally fewer buyers in the market.  Longer term, as the credit markets stabilize, the universe of buyers that can access the mortgage market should broaden.

 

The Bronxville area remains a very attractive market due to its small size, lack of new construction and general lack of inventory.  Homes that are well-priced, well-located and have renovated kitchens and baths continue to sell well.  August is a very slow month generally so it is hard to gauge what impact the market disruption has caused.  We will have a much better idea whether there has been any real disruption in the real estate market after Labor Day when the fall market gets underway.  Thus far, the Bronxville area real estate market remains very stable and, based on the number of new buyers we see in the market, we expect a busy fall. 

Administrator @ 7:56 am
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