Tag Archives: Pound Ridge NY Real Estate

Pound Ridge NY Real Estate

Why Westchester homes are getting battered by “dramatic price reductions | Pound Ridge Real Estate

(Credit: Daniel Case, Pixabay)

Westchester residents, many trying to avoid the hefty tax bill that 2018 promises, are finding themselves in an unforgiving buyers’ market.

In Scarsdale alone, prices dipped 5 percent in the first six months of 2018, while Mamaroneck saw a 13 percent drop, according to Bloomberg. The number of homes selling in the county fell 18 percent in the second quarter of 2018, with those asking between $1.5 million to $3 million faring the worst.

The major push factor for sellers to plow ahead despite plummeting prices is the GOP’s new tax law which slapped a $10,000 cap on state and local property tax deductions, which means homeowners in areas like Westchester, where property taxes can run up to $50,0000, are feeling a serious crunch.

As a result, the number of homes for sale in Westchester has been increasing: in late June, inventory was up 5 percent compared to last year and, for homes priced between $2-2.5 million, listings were up 26 percent.

Buyers are feeling no sympathy for homeowners who bet on turning a neat profit when they decided to sell off their prestige address. Compass broker Angela Retelny says her clients tell her “‘Look, I’m not going to spend more than $35,000 in taxes.’ … Houses are just being dismissed, even though they’re superior homes, and they have to be reduced — because their taxes are just way too high for the price range.”

With buyers taking a hard line, sellers are being forced to bend, according to her. There are “dramatic price reductions every single day — every hour, pretty much,” she told Bloomberg.

Yorktown Heights property attorney Matthew Roach recalled one client who sold his home of 25 years immediately after the GOP’s tax law was passed. His home had property taxes over $50,000 and he was planning to move to Brooklyn, pay $10,000 in rent and never buy another home.

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Why Westchester homes are getting battered by “dramatic price reductions”

Buyers Rush Past Market Challenges | Pound Ridge Real Estate

Existing home sales increased 1.1% in May, and 55% of homes sold last month were on the market less than a month as buyers overcame low inventory and higher prices. Although May inventory increased 2.1%, it remains 8.4% lower than a year ago and fell year-over-year for the 24th consecutive month. The National Association of Realtors (NAR) reported that at the current sales rate, the May unsold inventory represents a 4.2-month supply, down from a 4.7-month supply a year ago. May existing sales were up 2.7% from the same month a year ago, and reached a seasonally adjusted rate of 5.62 million compared to a downwardly revised 5.56 million in April. Total existing home sales include single-family homes, townhomes, condominiums and co-ops.

May existing sales increased 6.8% in the Northeast, 3.4% in the West and 22% in the South, but declined 5.9% in the Midwest. Year-over-year, the South was up 4.5%, the West by 3.4% and the Northeast by 2.7%, while only the Midwest was down slightly.

Homes stayed on the market for only 27 days in May, compared to 29 days in April, and 32 days a year ago. The May timeframe was the shortest in the history of that series which began in May 2011. The May first-time home buyer share was 33%, down from 34% in April, but up from 30% in May a year ago.

The May all-cash sales share increased to 22% from 21% in April, and was unchanged from a year ago.  Individual investors purchased a 16% share in May, up from 15% in April, and up from 13% a year ago. Some 64% of investors paid cash in May, up from 57% of investors in April.

The May median sales price jumped 5.8% from last year to $252,800, representing the 63rd consecutive month of year-over-year increases. The May median condominium/co-op price of $238,700 was up 4.8% from the same month a year ago.

April pending sales dipped for the second consecutive month, so the May bump in existing sales was good news. New home sales have grown 11.3% this year, and both jobs and incomes continue to grow, suggesting an improving market for new single-family construction.

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Housing Affordability Edges Up | Pound Ridge Real Estate

Modest home price and interest rate decreases resulted in a slight increase in nationwide housing affordability in the fourth quarter of 2015, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

In all, 63.3 percent of new and existing homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $65,800. This up from the 62.2 percent of homes sold that were affordable to median-income earners in the third quarter.


The national median home price fell from $231,000 in the third quarter to $226,000 in the fourth quarter. Meanwhile, average mortgage rates edged lower from 4.18 percent to 4.09 percent in the same period.

Youngstown-Warren-Boardman, Ohio-Pa. was rated the nation’s most affordable major housing market, switching places with Syracuse, N.Y., which fell to the second slot on the list. In Youngstown-Warren-Boardman, 90.1 percent of all new and existing homes sold in last year’s fourth quarter were affordable to families earning the area’s median income of $53,700.

Meanwhile, Binghamton, N.Y. claimed the title of most affordable small housing market in the fourth quarter of 2015. There, 94.6 percent of homes sold during the fourth quarter were affordable to families earning the area’s median income of $66,400.

For the 13th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. was the nation’s least affordable major housing market. There, just 10.4 percent of homes sold in the fourth quarter were affordable to families earning the area’s median income of $103,400.


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Builder Confidence Holds Firm in January | Pound Ridge Real Estate

Builder confidence in the market for newly-built single-family homes held steady at 60 in January from a downwardly revised December reading of 60, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).


The January HMI reading is in line with NAHB’s forecast of modest growth for housing. NAHB expects growth in 2016 for the single-family, multifamily, and remodeling sectors of the residential construction industry as continued job growth supports demand for housing.

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI component gauging current sales condition rose two points 67 in January. The index measuring sales expectations in the next six months fell three points to 63, and the component charting buyer traffic dropped two points to 44.





How to reach the #Millennial first-time homebuyer | Pound Ridge Real Estate

The news is no longer “Millennials don’t want to buy homes.”

They do. So how are you going to get them there?

HousingWire hosted its first editorial webinar on Wednesday, with expert panelists Ginger Wilcox, chief industry officer with Sindeo, Joe Caltabiano, senior vice president of Mortgage Lending with Guaranteed Rate and Tim Anderson director of eServices withDocMagic to answer the question.

The topic: How to reach the Millennial first-time homebuyer. Here’s a direct link to purchase the webinar presentation.

The three bring over 60 years of experience in all aspects of the industry and gave a full range of tips on what does and doesn’t work when it comes to reaching Millennials.

Wilcox explained how the industry can better understand Millennials, giving her tips and insight on what does and doesn’t move them, along with their heightened need for transparency.

She gave the example that Millennials are living in a world of radical transparency, noting that we know the exact geographical location of out Uber driver and the exact status of our Dominos pizza in the creation process.

Meanwhile, Caltabiano dug into the issues that are creating a roadblock for Millennials, noting the importance of educating them on what is actually true.

While they are going online first to do their own research, he explained that the industry needs to make sure Millennials are looking at the latest information.

The market is changing on a daily basis, and it’s easy for someone to pull information from an outdated source.

Caltabiano stressed to loan officers who are marketing to young homeowners the importance knowing all the options out there for their clients, ranging anywhere from down payment options to loan options.

DocMagic wrapped up the webinar, touching on the rules and regulations that are consuming the industry.

With eMortgages becoming more normal, lenders need to be aware of what this looks like from the start to closing of the loan, along with how to approach Millennials about the change.


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FHFA House Price Index Up 0.6 Percent in July | Pound Ridge Real Estate

Washington, D.C. – U.S. house prices rose in July, up 0.6 percent on a seasonally
adjusted basis from the previous month, according to the Federal Housing Finance Agency
(FHFA) monthly House Price Index (HPI). The previously reported 0.2 percent change in June
remains unchanged.
The FHFA HPI is calculated using home sales price information from mortgages sold to, or
guaranteed by, Fannie Mae and Freddie Mac. From July 2014 to July 2015, house prices were up
5.8 percent. The U.S. index is 1.1 percent below its March 2007 peak and is roughly the
same as the November 2006 index level.
For the nine census divisions, seasonally adjusted monthly price changes from June 2015 to
July 2015 ranged from -1.2 percent in the New England division to +1.6 percent in the
Mountain division. The 12-month changes were all positive, ranging from +2.1 percent in the
New England division to +9.4 percent in the Mountain division.


source: FHFA report

Strong Chicago housing sales in June | Pound Ridge Real Estate

Chicago’s housing market continued its rebound last month as existing-home sales in the nine-county area grew 14.2 percent in June from last year — to their highest level since 2006.

Existing-home sales rose to 13,100 in June, the highest since June 2006, when 13,193 homes were sold, the Illinois Association of Realtors reported Wednesday.

Also fueling the rebound are median housing prices, which, at $232,500, were 5.7 percent higher than a year ago, the trade group said.

Homes sales in the city of Chicago surged 9.3 percent, to 3,110 properties moved, at a median price of $290,000, up 5.5 percent from a median price of $275,000 reported a year ago.

Median prices on condominiums in the city, however, grew at a slower pace, rising 4.5 percent from a year ago to $324,000. Inventory in the city remains tight, down 10 percent from last year.

The number of condo units sold rose 8.4 percent to 2,027 from a year ago.

The burst in home sales growth was unexpected last month and it could be just a “one-month blip,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois.

“We forecasted positive sales growth but not of this magnitude,” he said adding, “We’re very hesitant to say that it’s the start of a robust trend.”

Nor does the report signal a bubble forming. Adjusted for inflation, “We’re only at 89 percent of 2007 prices,” Hewings said. “Our prices are recovering in a classic Midwest, modest way.”

Nationally, existing-home sales increased 3.2 percent to a seasonally adjusted annual rate of 5.49 million homes, putting sales at their highest level since February 2007’s 5.79 million, according to the National Association of Realtors.

The strong uptick in activity, as well as fewer cash sales, larger average loan sizes and more loans getting approved, has caused the Mortgage Bankers Association to significantly boost its outlook for mortgage originations that it made just a month ago.

Home-purchase mortgage originations are now expected to increase to $801 billion, compared to a previous forecast of $730 billion.

“We expect this trend to continue into 2016 and beyond, as the broader economy and job market continue to improve,” Mike Fratantoni, the association’s chief economist, said in a statement.

The association also said it expects mortgage rates to hit 4.5 percent by year’s end.

Helping keep prices high in the Chicago area is the lack of homes listed for sale. Housing inventory in most counties was down in June, with the exception of Lake and DuPage counties, where inventory rose 1 percent and 4 percent, respectively.


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Slow but Steady Climb Back to Normal | Pound Ridge Real Estate

Local economies continue to move toward economic and housing normality according to the NAHB/First American Leading Markets Index. The national index moved one percentage point to .91 in the first quarter of 2015 and 4 percentage points from the same quarter last year.

The index measures proximity to normal through three elementary indicators of economic and housing stability: the level of single-family housing permits, home prices and employment as compared to the last period of normality for each. A value of one means that indicator has returned to normal. The three are averaged for a single measure. More than 350 metropolitan areas are scored in this fashion.

In the first quarter of 2015, 68 markets or metropolitan areas had an index value of one or greater, an increase of 7 markets in one year. The increase is heavily driven by the increase in metro areas employment index. The number of markets back to or above normal in employment levels increased from 30 to 56 over the year. The number of markets returning to house price levels last seen in the early aughts has remained high at 95% of all metros measured. The slowest indicator to return to normal has been single-family permits as only 7% of the listed metros are issuing as many or more permits compared to the early aughts.

The markets leading in recovery are leading in employment and vice versa. Strong employment growth leads to the need for more homes and the markets showing the greatest improvement are in strong employment markets, primarily in energy production and refining. Half of the 68 metros with an index value of one or above are in the oil/energy belt in the middle of the country.

Note: The publicly available data used to compute the LMI reflects the updated boundaries and list of Metropolitan Statistical Areas made by the Office of Management and Budget (OMB) as a result of the 2010 Decennial Census. The historic data used for comparison were also updated to reflect post-2010 geography.


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Buy a Sleek William Georgis-Designed Home in the Hamptons | Pound Ridge Real Estate


Location: Water Mill, New York
Price: $14,000,000
This contemporary home in Southhampton was designed byAD100 architect and art world favorite William Georgis, who is known for imbuing his residences with eye-catching accents and bold fixtures. In this 4,000-square-foot spread, the living room has a double-height glass wall and a ceiling-mounted fireplace, while outside there’s a small heated pool and a yard landscaped with wildflowers and bamboo stands by garden designer Paula Hayes. Built for the real estate mogul and art collector Aby Rosen, thisrectangular home with an ivy-covered front elevation comes with a boat dock, a detached one-bedroom guesthouse, a workout studio, a built-in barbecue, and four bedrooms with views of the water. Previously a $400,000 whole-summer rental, the one-acre property is now on the market asking $14,000,000.


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Striking Out Again and Again | Pound Ridge Real Estate

Spring training has just started but thousands of homeowners are already striking out for the second time.

Black Knight reports that in January foreclosure starts reached at 12-month high. Repeat foreclosures were up 11 percent month-over-month and made up over half of January foreclosure starts; first-time starts were up just 0.33 percent.

The month’s data showed that both first-time and repeat foreclosure starts reached 12-month highs, although there was clear separation in the levels of increase between the two. According to Trey Barnes, Black Knight’s senior vice president of Loan Data Products, separation also continues to be seen between judicial and non-judicial foreclosure states across multiple performance indicators.

“Overall foreclosure starts hit a 12-month high in January, and that held true when looking at both first-time and repeat foreclosure starts individually,” said Barnes. “Repeat foreclosure starts made up 51 percent of all foreclosure starts and increased 11 percent from December. In contrast, first-time foreclosure starts were up just a fraction of a percent from the month prior. Similarly, Black Knight found that January foreclosure starts jumped about 10 percent from December in judicial states as compared to just a 1.7 percent increase in non-judicial states. Judicial states are also seeing higher levels of both new problem loans and serious delinquencies (loans 90 or more days delinquent, but not yet in foreclosure) than non-judicial states, although volumes are down overall in both categories.

One again the action is mostly in the judicial states.  Foreclosure starts were up almost 10 percent month-over-month in judicial states vs. just 1.7 percent in non-judicial.  “At the same time, foreclosure sale counts – essentially, completed foreclosures – have been decreasing more rapidly than the inventory of seriously delinquent loans in both judicial and non-judicial states. As a result, foreclosure pipeline ratios, the backlog in months of foreclosure and 90-day delinquent inventory based on current foreclosure sale rates, have been increasing across the board. In judicial states, the pipeline ratio now stands at 58 months; up quite a bit from the 47 months seen in 2013, but a far cry from its high of 118 months a couple of years before that. In recent months, non-judicial pipeline ratios have reached similar levels to judicial pipeline ratios. As of January, the non-judicial pipeline ratio was at 53 months, close to an all-time high. Throughout the housing crisis, non-judicial pipeline ratios were significantly lower than those in judicial states.”


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