By Cindy G. Landis, Brokerage Manager, Bronxville Office of Houlihan Lawrence
Jul. 11, 2018: Buyers and sellers have had a lot of new information to consider this year when analyzing real estate transactions. The impact of the SALT (state and local tax deduction) legislation, new income tax categories, gyrations in the stock market, and even international issues have created an air of uncertainty. Mortgage rates have ticked up as predicted and are expected to continue to do so. For the single-family market, it has been a challenging year thus far. There have been flurries of activity but followed by quieter periods; on the other hand, activity has continued longer than usual.
Single-Family Homes (other than townhouses). On June 30, there were 46 village houses for sale as compared to 41 units last year, a 12% increase in the number of homes for sale. Seventeen houses are in contract compared to 19, a 10.5% decline. Nineteen village houses have closed so far, compared to 25 last year. The breakdown of the data is that of the 19 closed houses, none were less than $1,000,000. From $1 to $2 million, there were 7 closings, from $2 to $3 million, 8 closings, one closing over $3,000,000 (and under $4 million), 2 closings over $4 million (and under $5 million), and one closing above $5 million.
Naturally, the price-per-square-foot data and the median will swing as closings occur and future deals are made. At the moment, the median is $2,100,000, which is 4.4% less than the median for the first six months of 2017. Price per square foot has declined slightly to $644 per square foot (from $670 for the past two years). Interestingly, based on data from the Hudson Gateway Association of REALTORS multiple listing service, houses that have closed are selling for a percentage of their assessed value as compared to a multiple of it.
Townhouses. After 2017’s quiet performance with only six closings, there are already five closed deals this year and two additional deals in contract, and the year is only half over. Eight units are listed for sale. The median sale price of the five closed deals is $1,472,500, and compared to the mid-year median of 2017, $1,012,500, that’s a whopping 45% increase. Price per square foot is $661 versus last year’s $609.
Cooperatives. Twenty-two co-ops have closed this year and an additional eight are in contract. Four of the closings were over $1,000,000 and the price per square foot for all sales is $474. The median is $622,500, compared to last year’s mid-year median of $522,500.
In Conclusion. Clearly, sellers of single-family homes have their work cut out for them; there is pressure to reduce prices to attract buyers. Other communities dangle offerings to entice buyers as well. In the townhouse market, the situation is guardedly optimistic but pricing will have a natural ceiling based on sale prices of single-family houses. Cooperatives remain in demand, particularly larger units.
Pictured here: Cindy G. Landis, Brokerage Manager, Bronxville Office of Houlihan Lawrence.
Photo courtesy Cindy G. Landis
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