J Philip Faranda, Broker-Owner

Sometimes there is no pretty way to say it, so I'll just say it: January 2012 was not a very good month in Westchester real estate. According to the Empire Access MLS, both the transaction total and median sale price of single family homes in the county were down from the same time in 2011. Since 2011 started out far slower than 2010, the ramifications could be far reaching.

To sumarize:

In January 2011, 237 single family homes closed at a median sale price of $540,000.
In January 2012, 219 single family homes closed at a median sale price of $485,000.

The last month of January the median price was below $500,000 was 2002, when the median was $472,000. That month, however, there were 415 closings, or almost double last month. 219 transactions is a shrinking pie to share amongst the over 6,000 licensed sales people in Westchester.

Median price is not average price, so rather than being more emblematic of where values are, it speaks to the buying public's trend to buy less expensive homes. Clearly, the consumers are more conservative, discerning, and cautious.

There are other factors at work as well. Currently, there are 676 homes under contract in the pipeline. If only half of them closed in the next 30 days it would be a very productive month. However, getting that many deals closed is unlikely for several reasons. First, many of those deals are short sales that are months away from being approved by the sellers' lenders. Also, the mortgage money supply continues to be quite tight, and many transactions are still caught in red tape, underwriting obstacles, and other roadblocks related to a crimp in the monetary system.

Last week I attended a dinner keynoted by Michael McHugh, president of Continental Home Loans. In his view, the tighter money supply is a result of Dodd-Frank, and this trend is expected to continue as the legislation continues to be implemented. Ironically, 4% interest rates and lower prices and are not enough to push the market out of the malaise. It is a complex issue, because the "fix" for the financial crisis is having a suppressing effect instead of strengthening the market it was designed to turn around.

This does, of course, spell a huge opportunity for buyers. The climate is very heavily tilted in buyers' favor, but how many take advantage remains to be seen. While many conditions clearly make it a great time to buy, the overall mentality of caution is keeping many would-be buyers on the sideline. What buyers sitting on the fence should know is that if they are planning for the long term, they can get themselves a very good situations with excellent terms. They just have to get out there and make an offer.

For those of you not living in New York or who don't follow NBA basketball, the toast of Gotham is Jeremy Lin, an unheralded, undrafted, and un-scholarshipped (is that a word?) point guard who just led the Knicks to their 4th straight win over the Lakers. He scored 38 points to pace the Knickerbockers, playing without their two stars, over LA 92-85. Lin is an amazing story: after leading his high school to the state championship, no college offered him a scholarship. I read last night that a coach at UCLA, Lin's dream school, admitted that had they been wise enough to recruit him, he would have started for the Bruins. He played at Harvard and was undrafted by any NBA team. Two clubs cut him before the Knicks picked him up. He's only been in town a couple of weeks and probably would still be on the bench if the squad weren't plagued by injuries. And all he's done is play out of his mind and lead the Knickerbockers to 4 straight wins.

One of the announcers tonight mentioned that Jeremy is staying at his brother's house on the lower east side on a couch. They went on to say that some real estate agents must be licking their chops, because Lin is not leaving New York anytime soon. I agree- Mr Lin is not going to be some journeyman who gets cut, waived, traded or sent back to D-League. He's staying in Madison Square Garden and he's going to have to do better than his brother's couch.

If Jeremy wanted to live in the suburbs, Westchester would be the best choice in my mind, and I think I know a good broker for him to call. However, I think he'll stay in Manhattan, and that gets my wheels turning because I know an agent or two that, if I were in his shoes, I would use to find a home.

I have done business with Eileen Hsu for years and she'd be a phenomenal choice. Eileen is a tremendous talent, a great advocate and negotiator, and possesses an incredibly committed work ethic. I have had a front row seat in some transactions of a highly difficult nature where Eileen gave virtuoso performances and got the job done elegantly.

My friend Doug Heddings also comes to mind. Heddings Property Group is perhaps the most forward thinking and innovative real estate brokerage in Manhattan. The firm's growth proves that Dog knows where this industry needs to go to truly serve the public.

Of course, Knick hall of famer and announcer Walt Frazier's son Walt Frazier Jr is an agent with Keller Williams in Manhattan, and he may already be on the job. I had the good fortune of meeting Walt at the New York RE Bar camp last month, and I remembered him from his own illustrious college basketball career at Penn when he played some great games against my alma mater, Villanova, and ruined our chances of winning the Big 5 in 1988-89. Walt, who has the heart of a champion, runs a great operation.

But alas, in the post game tonight the commentators mentioned that Jeremy has been offered the apartment of ex-teammate David Lee in White Plains.

What really gets me jazzed about Jeremy Lin is not the pipe dream of being his real estate agent. My 9-year old son Luke has coincidentally discovered a love of basketball in the last few months. Luke has ADD and last year, prior to his diagnosis, he had to endure some difficult times in school both academically and socially. It is not easy for a father to see that, and Ann and I have worked hard to help him. I had ADD too and sports made a huge difference for me. It is beginning to make a difference for Luke. He and I will be going to some games aside from the ones we play in the driveway, and a role model like Mr Lin makes a father's job easier. His story of perseverance and faith is an inspiration. And that's why Madison Square Garden is electric again.

Update: Lin is out in front again- NY Post already reported he's househunting!

I have often said that nearby Pleasantville is aptly named. It borders Briarcliff Manor to the east and is idyllic: a picturesque, charming little village on the Harlem line of Metro North with shops, eateries, and culture. The latest feather in the village's cap is that GQ magazine voted it the second best smelling city in the world.

Good for them. I'm no expert on aroma but I can tell you that living in Pleasantville would never stink. My first job ever, which paid for my junior prom in 1984, was washing dishes at Pace University. When I took a year sabbatical from life in 2000 before I got married I tended bar at Mediterraneo. As a matter of fact, I proposed to Ann over a nice meal from Mediterraneo, but it was takeout. They still get credit. I meet every other Friday at Jean Jacques with my networking group. And the Jacob Burns Center is Westchester County's premier theater for cultural films.

We love to do business in Pleasantville. Stephanie Solano, one of our top agents, lives in Pleasantville and is a local expert.

In 2011, 47 homes sold in Pleasantville at a median price of $495,000.
There are currently 40 homes for sale in the Pleasantville school district at a median list price of $649,450.

It is a great time to be a buyer, and if central Westchester County is a good location for you, you should check Pleasantville out. Better yet, reach out to Stephanie. (914) 645-2433

Previous posts on Pleasantville.

View homes for sale in Pleasantville with or without registration.

Pleasantville Named Best Smelling 'City': MyFoxNY.com

For the third time in the past 4 weeks, I have been contacted by a buyer who chose to call me directly instead of having their agent call me because their offer was not accepted. In each case, I have told the agent-and the buyer when they called- that I'd be happy to know what comparable sale they used to justify their price. In each case, I have heard the same thing in lieu of any other fact: It is a buyer's market.

This is what I wrote earlier this week on the "buyer's market:"

the "buyer's market" phrase was thrown around as if it were some childhood game wildcard phrase that granted immunity from logic or true market forces.

In other words, there were no other sales they could use to justify their price- it was just a speculative pipe dream.

One of the properties we are dealing with is a condominium in Chappaqua in the Old Farm Lake complex. Even though the 4th quarter of 2011 was not good and prices across the Westchester market were down about 5% from last year, the condominium market in Chappaqua is actually up. Here are some facts:

• In 2009, the median price of a condo in Chappaqua was $453,000.
• In 2010, the median price of a condo in Chappaqua was $467,000.
• In 2011, the median price of a condo in Chappaqua was $505,000.