2ND QUARTER 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.55101

What You Need to Know About the Local Real Estate Market - Q2 2018The most exciting news is that the current real estate market in Westchester is filled with opportunity! Yes, we concede that some objectives will have more hurdles to overcome than others, but all will be worth the effort in the long run.

Let’s start with the opportunities for move-up buyers which are the best they’ve been in years! If you’re ready to trade up from that 3-bedroom, 2 bath mid-level home to something larger or more luxurious, you are in the ideal position for this market. The home you’re selling, thoughtfully prepared and properly priced for the market, will sell quicker than you can imagine (days-on-market continue to drop for all property types). At the luxury level, you will have an abundance of properties to choose from at more attractive prices as sellers make adjustments to move quicker than their competition. More money for you on the sale, plus savings on the purchase equals great opportunity!

Perhaps you’ve owned a 2-4 family home for several years. You purchased it as your first foray into home ownership and the rent from your tenant(s) helped you afford to own. Now your family is growing and you’d like more privacy. Solution: sell the multi at a profit and buy that single-family! Currently, we are seeing the lowest inventory of multi-family homes for sale in at least 25 years. Investors are plentiful and looking to scoop up good properties which are selling in record time and at all-time high prices.

Have you been renting and are tired of paying your landlord’s mortgage rather than your own? Westchester still has affordable co-op apartments for entry-level buyers, or anyone looking for the worry-free ownership style they offer. And if you’re looking to sell a co-op, they’ve never been moving more quickly, even one-bedroom units that are often stagnant when the market weakens.

One of the challenges we’re seeing is the number of buyers bidding on each moderately priced single-family home that’s in a desirable location, move-in condition or nearly so, and priced right for today’s market. If you’re one of those prospective buyers, you may be getting frustrated if you’ve been outbid on one or more homes. Rather than

continuing to fight for what everyone else wants, the opportunity lies in the not-so-perfect homes that aren’t being scooped right up. A renovation mortgage that allows you to finance the cost of the repairs and upgrades to turn it into your dream home could be just the solution you need. There’s just one closing and renovation costs are financed over the full term of the loan (15 yrs, 20 yrs, 30 yrs). The costs for the renovations don’t come out of your pocket up front, but you get into the home now while interest rates are still under 5%, and you get to enjoy all the benefits of the work you’ve done throughout the years you own it. Maybe you’ll even get a good deal on the purchase price because no one is fighting over the “ugly duckling” house in a great neighborhood.

If you feel like you’ve missed the spring market as either a buyer or seller, there’s even still opportunity for you. The nicer spring weather was late in arriving this year, and so the kick-off to the spring real estate market followed suit. There is still a relatively steady stream of new listings hitting the market, and plenty of buyers still looking.

While there are still uncertainties related to the new tax laws causing some buyers to adjust their game plan, it hasn’t derailed sales completely as some speculated it might. Some of those buyers are now just choosing to buy less expensive properties with lower taxes, adding to the softness in the high end of the market. Concern over appraisals is common in any rising-price market and this one is no different. Sellers are carefully considering the offers they receive, and sometimes even shying away from overly zealous bidders, speculating that they could be re-negotiating the price anyway if the appraisal comes in too low. Mortgage interest rates are also on a slow rise, but as yet don’t seem to be causing any hesitation on the part of buyers.

The best way to take advantage of all these market opportunities is to have a team of skilled professionals in your corner to advise and guide you through the process. Have a great Realtor, attorney, mortgage lender, home inspector, and other service providers at the ready. They’ll help you achieve your real estate goals and not miss out on any opportunity!

Local Market Update Quarterly Data At-a-Glance

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

CLOSED SALES

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

AVERAGE DAYS ON MARKET

Condos

$375

,500

$369

,000

Co-ops

$162

,000

$170

,000

Multi-Family

$455

,000

$484

,500

SingleFamily

$670

,000

$710

,800

2017 20182017 20182017 20182017 2018

MEDIAN SALE PRICE

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

INVENTORY OF HOMES FOR SALE**

435

426 81

0

639

234

214

3,03

9

3,10

6

356

333

523

472

147

157

1,62

8

1,55

6

69 64

87 81 76

66

85

75

Fast Market FactsSchool District Data Why Us?Do Home Improvements = Higher Taxes?

2ND QUARTER 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.55102

SCHOOLDISTRICT

HOMESUNDER

CONTRACT2nd qtr 2018

HOMESUNDER

CONTRACTPrevious qtr

HOMES SOLD

2nd qtr 2018

HOMES SOLD

2nd qtr 2017

MEDIANSALEPRICE

2nd qtr 2018

MEDIAN PRICE OF ACTIVE LISTINGS

2nd qtr 2018

MEDIANSALEPRICE

2nd qtr 2017

% CHANGE YEAR-

OVER-YEAR

Ardsley 36 21 26 40 $667,500 $717,500 -6.97% 57 $759,000 Bedford 47 44 75 77 $775,000 $780,000 -0.64% 197 $1,099,000 Blind Brook 25 12 20 39 $834,500 $795,000 4.97% 61 $949,900 Briarcliff Manor 14 8 21 18 $765,000 $947,951 -19.30% 34 $899,000 Bronxville 12 19 22 21 $1,973,750 $2,300,000 -14.18% 63 $1,445,000 Byram Hills 29 23 40 58 $1,009,500 $988,150 2.16% 130 $1,397,000 Chappaqua 43 36 64 64 $937,500 $921,500 1.74% 136 $995,000 Croton-Harmon 16 14 22 28 $647,500 $526,000 23.10% 32 $861,950 Dobbs Ferry 13 10 19 12 $808,500 $937,000 -13.71% 37 $1,100,000 Eastchester 23 18 34 25 $701,500 $725,000 -3.24% 40 $799,000 Edgemont 30 14 16 29 $999,999 $1,275,000 -21.57% 64 $1,158,000 Elmsford 11 7 10 16 $557,000 $415,000 34.22% 37 $554,000 Greenburgh 28 33 46 38 $567,000 $502,500 12.84% 58 $589,000 Hartsdale (P.O.) 25 23 30 22 $629,000 $585,000 7.52% 42 $649,000 Harrison 36 33 50 46 $1,507,500 $1,437,500 4.87% 151 $1,515,000 Hastings 20 11 16 8 $926,500 $712,500 30.04% 26 $814,000 Hendrick Hudson 41 19 27 40 $460,000 $425,000 8.24% 84 $525,000 Irvington 9 14 24 22 $1,153,250 $1,249,510 -7.70% 63 $1,384,000 Katonah-Lewisboro 33 38 62 54 $755,500 $607,500 24.36% 145 $739,000 Lakeland 73 33 68 79 $401,000 $350,000 14.57% 94 $429,000 Mamaroneck** 56 51 100 69 $1,201,875 $1,386,018 -13.29% 100 $1,379,000 Mount Pleasant 23 13 25 23 $655,000 $600,000 9.17% 39 $624,999 Mount Vernon 40 26 32 54 $455,000 $432,500 5.20% 66 $489,000 New Rochelle 92 42 75 101 $675,000 $700,000 -3.57% 201 $759,000 North Salem 13 10 19 18 $570,000 $650,000 -12.31% 65 $619,000 Ossining 41 37 59 66 $449,000 $420,000 6.90% 101 $514,450 Peekskill 21 16 25 24 $281,500 $225,000 25.11% 27 $335,000 Pelham 27 28 44 37 $942,250 $1,125,000 -16.24% 55 $925,000 Pleasantville 23 21 19 13 $755,000 $590,000 27.97% 37 $752,000 Pocantico Hills 2 1 4 6 $520,000 $786,881 -33.92% 4 $699,000Port Chester 21 20 31 29 $482,500 $545,000 -11.47% 34 $544,500 Purchase (P.O.) 7 9 12 8 $2,094,500 $1,533,500 36.58% 47 $1,950,000 Rye City 34 31 47 54 $2,259,000 $1,830,000 23.44% 98 $2,185,000 Rye Neck 22 14 23 17 $1,125,000 $935,000 20.32% 38 $1,375,000 Scarsdale 64 36 62 62 $1,555,000 $1,584,000 -1.83% 188 $1,575,000 Somers 24 25 49 37 $530,000 $550,000 -3.64% 88 $662,250 Tarrytown 16 9 16 14 $776,000 $846,500 -8.33% 26 $649,000 Tuckahoe 11 7 11 10 $705,000 $640,000 10.16% 28 $889,000 Valhalla 18 9 15 26 $539,000 $510,500 5.58% 32 $602,000 White Plains 42 44 69 62 $815,000 $614,000 32.74% 80 $749,000 Yonkers 131 75 131 139 $510,000 $475,000 7.37% 189 $535,000 Yorktown 35 17 32 49 $492,950 $503,000 -1.99% 90 $589,450

* Data sourced from Hudson Gateway Multiple Listing Service and sorted by school district unless otherwise noted. **Includes Larchmont P.O.

Single Family Homes Under Contract and Closed Sales*

ACTIVELISTINGS

2nd qtr 2018

2ND QUARTER 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.55103

Overall Sales Down 5.1% Total number of sales, inclusive of all main property types as shown in detail in this report, are down just over 5% from the same quarter one year ago. The lack of available inventory in the most desirable price points continues to constrain sales, rather than any lack of buyer demand. Co-op sales are down the most significantly at 9.8%, with inventory of available co-ops down a corresponding 21%. Single-family home sales declined 4.4% and condos were down 6.5%. Multi-family sales showed the only increase, up 6.8% as some investors determined this was a good time to sell and take their profits, and/or to trade up to a single-family property.

Prices Up 6.1% Year-Over-YearThe median single-family home price reached $710,800 in the 2nd quarter of this year, a 6.1% increase from $670,000 in the 2nd quarter of 2017, and jumping up significant-ly from $611,250 in the 1st quarter of this year. Year-over-year gains were seen in all property types, with the exception of a slight drop in median condo prices of 1.7%. Multi-family properties saw the highest gain at 6.5%, with a 4.9% increase for co-ops. Price gains are reflective of the basic economic principle of supply and demand, with strong buyer demand and insufficient inventory. The 2nd Quarter of each year is also generally the strongest season for home buying in our area.

Inventory Down Just Under 3% Overall inventory ends the quarter down not quite 3% below the same quarter of 2017. With the spring market generally the time of highest inventory, declines are much less than the double-digit drops we’ve seen in other recent quarters. Co-ops showed the biggest inventory decline, down 21% as demand remains strong for entry-level or downsized housing. Single-family units actually increased slightly as buyers ignore luxury homes or those perceived to have proportionately high taxes, focusing on more moderately priced properties.

% of List Price ReceivedSingle-family homes sold for 98.5% of list price in the 2nd quarter of 2018, up from 98.3% one year ago, continuing the pattern of strength we’ve witnessed for several years now. Many of the most desirable properties are selling at prices over asking. With any exceptions generally coming in the high end of the market, buyers for low to mid-range homes have very little room to negotiate.

* Per data provided by the Hudson Gateway Association of Realtors

How was the Westchester Market in the 2nd Quarter of 2018?

How much negotiating room was there?

Quarterly Home Sales Report - At a Glance.*

2ND QUARTER 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.55104

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

CLOSED SALES

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

AVERAGE DAYS ON MARKET

Condos

$375

,500

$369

,000

Co-ops

$162

,000

$170

,000

Multi-Family

$455

,000

$484

,500

SingleFamily

$670

,000

$710

,800

2017 20182017 20182017 20182017 2018

MEDIAN SALE PRICE

Condos Co-ops Multi-Family

SingleFamily

2017 20182017 20182017 20182017 2018

INVENTORY OF HOMES FOR SALE**

435

426 81

0

639

234

214

3,03

9

3,10

6

356

333

523

472

147

157

1,62

8

1,55

6

69 64

87 81 76

66

85

75

Fast Market Facts, Year Over Year, Q2 2018, Westchester County.*

* Per data reported by the Hudson Gateway Association of Realtors.** Average monthly inventory of homes for sale.

2ND QUARTER 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.55105

Do Home Improvements = Higher Taxes?As Realtors, we hear this question posed by both buyers and sellers. Buyers will usually ask before they make any improvements; sellers often ask after the work is already done and now they’re ready to sell the home.

To get a clear understanding of how the process works, we consulted with a very reliable source, retired tax assessor Rich O’Donnell, current partner in O’Donnell & Cullen Property Tax Consultants. Rich spent 28 years as an assessor for several local municipalities including Eastchester, Mt. Pleasant and Tuckahoe.

Most homeowners believe that, “If I improve my property, my assessment and taxes will go up!” This results in a fair amount of what Rich terms “midnight carpentry”, aka doing improvements without filing the proper permits. According to Rich, it is correct to think that since property taxes and assessments are based on market value, making improvements will subject the assessment to potential change. However, if there’s a change and the amount of that change can be quite variable depending on how much value the improvements add to the home.

Certain home improvements add the most significant value to a home. At the top of the list are new kitchens, bathrooms,

and finished basements. To a somewhat lesser extent, decks, pools and central air will also add value. But how much will the assessment increase? It will depend on how much value the improvements add. There is some correlation to the cost of the work done, but it’s not a dollar-for-dollar formula. For instance, high-end kitchen appliances like a Miele dishwasher, Viking stove, or Sub-Zero refrigerator will cost thousands of dollars, but are not considered real property and therefore cannot be counted toward value or a higher assessment.

What if the property is already over-assessed before the improvements are done? Will the assessor still raise the assessed value? Rich tells us that in this case the assessor may make little or no adjustment. Conversely, in municipalities that are not at full market value, if the property is under-assessed, the assessor can only make adjustments “to the extent that the improvements add value.” The assessor cannot also add to the assessment to bridge the gap of the under-assessment. For example: a home’s assessment equates to a value of $750,000; the home’s current market value is actually $850,000; and the owner makes improvements that add $150,000 in value. The assessor can increase the assessment to reflect the additional $150,000 for the improvements but cannot make up the $100,000 that the home was under-assessed. However, in municipalities that are at full market value, the assessor does have the ability to bridge the gap and bring a property up to its full market value.

We asked Rich if there are any improvements an owner can make that will NOT affect value? He shared that many general maintenance items fall into this category, things like a new roof, windows, siding or mechanicals which can cost the owner some money but would cause little or no change to the assessment, although doing a group of those type of improvements at the same time may then be viewed as adding value. Other items like new flooring, painting and landscaping are not likely to raise the assessment.

Rich shared with us a way to “work the assessment calendar” when doing renovations so you can effectively get an extra year of use of your improvements without paying higher taxes for

continued

2ND QUARTER 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.55106

Do Home Improvements = Higher Taxes? continued

them. Since the assessment roles are issued on June 1st in almost all Westchester municipalities, if a homeowner begins new improvements shortly after June 1, 2018, the assessment can’t be raised until the following June (2019), and it doesn’t go into effect until the April after that (2020). This time delay allows the homeowner the enjoyment of the improvements for over a year with no increased assessment.

So what happens to the homeowner guilty of “midnight carpentry” when it comes time to sell the home? The seller will need to get the improvements legalized, including a new CO (Certificate of Occupancy). They will need to hire an architect to draw and submit plans, and possibly a contractor to bring the work up to current code. They will probably pay some amount of penalty for having done the work without permits, but not a hefty fine. The municipality can legally go back 3 years to recoup the lost tax revenue from the homeowner, but Rich says that is rarely done. Once the permits are properly filed and the work approved, the assessment will be increased accordingly.

Buyers often wonder if the house they’re purchasing can be reassessed upon sale. The answer depends on whether the municipality where it’s located is operating under “full valuation”, meaning they’ve undergone a recent reassessment to bring all properties up to 100% assessment. If the municipality has not undergone a full revaluation process, then it is illegal to reassess upon sale. It would actually be considered discriminatory to reassess the home that sells and leave all other under-assessed homes unchanged, a concept known as “welcome stranger”. However, in the process of sale, the assessor may become aware, for instance, that there’s a new kitchen in the home. The assessor could then raise the assessment only to the extent that the kitchen adds value, not beyond that if there is a further discrepancy in assessed value.

We’ve also been asked by buyers whether something like a dumpster in the driveway might be a signal for the local assessor to investigate. Rich said that, as assessor, he would

sometimes have anonymous notes show up on his desk, with only “a concerned taxpayer” on the return address! When that happens, the assessor will most likely drive by the property to determine whether there’s a building permit taped to the door as it should be when any work is being done.

We know all this can be quite confusing! In addition to consulting with one of our real estate professionals, Rich and his partner Mike Cullen also welcome questions from home buyers, sellers, or Realtors on any and all tax and assessment issues, including homeowners wondering if they can grieve their current assessments, an area they specialize in. Their website, www.retiredassessor.com, has extensive tools and resources for calculating home values based on assessments, grievance deadlines and more, as well as FAQ’s. Contact Rich O’Donnell or Mike Cullen at 914-779-4444, or rich@retiredassessor.com.

2ND QUARTER 2018

REAL ESTATE MARKET REPORT

www.HomesNY.com 914.961.55107

It is our sincere belief that we are only as good as how we represent each and every client and community that we serve. Our reputation is made and tested on a daily basis. It is with this keen awareness that we strive for success in the eyes of those we serve.

Westchester Real Estate, Inc. is a truly unique affiliation of premier real estate companies serving the markets of Westchester & Putnam Counties as well as NYC. Our companies have conscientiously and diligently created their stellar reputations and success over years and sometimes decades. Our achievements are evidenced by the 20,000+ buyers, sellers, tenants & landlords who have chosen to work with us over the past decade, and by our consistent ranking among the top five companies in our marketplace.

We pride ourselves in being: • Highly informed about the market • Entrenched in our various communities • Students of real estate who are always learning and teaching others • Staunch protectors of the “American dream” and laws that protect that • Among the most professional and ethical practitioners in our industry.What we take pride in are the things that benefit and make a world of difference to our clients.

Our value proposition is different. Our caring and concern are genuine. The delivery and quality of our services are unmistakable. If you haven’t already, we hope you will choose to experience all this for yourself so we can show you what we mean. If you are one of our loyal clients, we thank you for your patronage and trust.

Westchester Real Estate, Inc.Regional Office & Relocation Center358 Route 202, Suite 2, Somers, NY 10589(914) 961-5510 • www.HomesNY.comEmail: Info@HomesNY.com

NEWJERSEY

ROCKLAND COUNTY

PUTNAM C OUNTY

WE S TCHE S TE R C OUNTY

FA IRFIELD C OUNTY, CONNECTIC

UTHudsonRiver

TappanZee Bridge

I-684

Route 9

I-287

I-87

HutchinsonPkwy

Long IslandSound

Rye

White

Armonk

Bedford

PoundRidge

CrossRiver

Katonah

Cortlandt Manor

YorktownSomers

NorthSalem

SouthSalem

Mt. Kisco

Pleasantville

Hawthorne

Port Chester

Harrison

Mamaroneck

BriarcliffManor

RyeBrook

Irvington

DobbsFerry

Ossining

Scarsdale

Chappaqua

I-84

I-684

Route 22

BRONX

New YorkCity

Hastings-on-Hudson

Mt. VernonBronxville

HartsdaleArdsley

Tarrytown

Saw MillRiver Pkwy

TaconicPkwy

SprainPkwy

NASSAUCOUNTY

TaconicPkwy

N

Pelham

QUEENS

Yonkers

I-84

DUTCHESS COUNTY

BROOKLYN

Thornwood

New Rochelle

Larchmont

Peekskill

Croton-on-Hudson

Mahopac

Plains

Eastchester

J. Philip Real Estate, LLC • www.jphilip.com522 North State Road, Briarcliff Manor, NY 10510(914) 762-2500

J. Philip Real Estate, LLC • www.jphilip.com134A Fifth Avenue, Pelham, NY 10803(914) 738-2200

J. Philip Real Estate & J. Philip Commercial Group • www.jphilip.com593 Route 6, Mahopac, NY 10541(845) 621-2200

Mancini Realty • www.mancinirealestate.com358 Route 202, Somers, NY 10589(914) 276-1010

Park Sterling Realty • www.parksterlingrealty.com17 ½ Park Place, Bronxville, NY 10708(914) 337-1234

Peter J. Riolo Real Estate • www.peterriolo.com30 Main Street, Hastings-on-Hudson, NY 10706(914) 478-1400

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