Market Update

In these tumultuous economic times, every sector of the real estate market is hurting. The one hardest hit by the economy remains the high-end market. The biggest change we are now seeing is the sharp decline in the rate of high-end home sales. Homes priced in excess of $1 million have seen a 70% decrease in sales throughout Westchester County.

According to statistics and the fact that in Armonk alone we have a little over 2 years worth of inventory, makes it a buyer’s market. The buyers with the most bargaining power are the high-end buyers. With less competition and more inventories to choose from, buyers in this price range feel empowered (I believe the majority of buyers regardless of price point feel this way). The result of this is the reason we are seeing sharp price reductions in the high-end market, and at times buyers offering anywhere from 20 - 40% below ask. The bottom line is we are seeing deals being contracted at 2002/03 price levels. A pragmatist would say that as more homes pass title and sale prices are recorded at these new levels, agents will be able to use these market comps to properly advise sellers with supporting statistics to reduce existing prices. One drastic difference in today’s market is that a comp from 6 months ago is already too old……….we are in a fluid market. There are many factors that can help stabilize the market but one of the most important is how sellers react to current statistics and the expertise provided by professionals.

Although location remains an important factor in the home buying process, in today's market, the buyer is more concerned with price. Buyers are simply looking for a good deal. We are still seeing homes sell very quickly, some with multiple offers when priced correctly from the start.

The most important thing I tell my sellers is - “We have two weeks to shine when we list your home.” In the current market with new homes continuously becoming available, it does not take long for a property to become stale. Once that happens, the seller will typically find themselves two steps behind in a spiraling decline with each price reduction. In the end, many of these listings sell for a much lower price than they would have had they priced the home to sell from the start. Sellers will play a key role in market trends for the remainder of this year and beyond. How they choose to market their homes will be an important factor in future home sales.

DEALS DEALS DEALS

Every buyer is interested in value. Below are homes currently on the market that in my professional opinion, offer good value. Contact me at 914.806.6981 to discuss these properties in more detail and many more properties that may be of interest you. All properties below are Armonk schools (Bryam Hills).

1. MLS #2931756 - If you are looking for Value and Move In Condition you have found your home. With close to 4000 sq.ft. this post modern home that lives like a colonial is nestled on more than an acre of land. This pristine property has 4 spacious bedrooms and 2.1 baths and is located on a quiet cul-de-sac. Come see the value for yourself. - $1,350,000

2. MLS #2930519 - Be apart of Windmill. 6,000 sq.ft. colonial on over 2 acres of rare flat land. Spacious 5 bedroom home with 4.2 baths and in walking distance to the beach. Don't miss this! - $1,699,000

2. MLS #2927209 - Your castle awaits you. Boasting 10,000 sq.ft., 5 bedrooms, 7 bathrooms and over 7 acres. Short Sale, great price at $2,890,000. Must See!

3. MLS #2917994 – Detached single family home w/ 3 bedrooms in desirable gated community with pools, tennis, and clubhouse, built in 2001, over 3000 sq.ft. - $1,149,500 “very negotiable”

4. MLS #2930297 – 4 bedroom colonial home with over 4000 sq.ft, built in 1997 on over 3 acres. - $1,160,000

6. MLS #2909477 – 5 bedroom brick colonial located in the exclusive Thomas Wright development. Built in 1999 the home sits on over 3 acres and boasts over 5000 sq.ft. - $2,350,000 “very negotiable”