July 24, 2009
Prices, sales fall in Westchester, Putnam
Jerry Gleeson
jgleeson@lohud.com
The housing market in Westchester and Putnam counties last quarter looked less worse by some measures than at the beginning of the year, but industry observers stopped short of calling a bottom in the long slide in sales and prices.
Sales of single-family houses in both counties fell by double-digit percentages in the second quarter, year over year, according to the Westchester-Putnam Multiple Listing Service, but the declines were smaller than those of the first quarter.
On a seasonally adjusted basis, sales of housing of all kinds in Westchester rose 12 percent over the first quarter, the MLS said. It was the first significant break in buckling sales figures since early 2007.
http://www.lohud.com/article/99999999/DATABASE10/310280006/"> DATABASE: Sales, median sales price of single-family homes fall at record pace in Westchester
For sellers, the good news ends there.
Prices continued to drop across all markets. A single-family house in Westchester had a median price of $565,000, down 16.3 percent year over year. In Putnam, the median price hit $325,000, down 18.8 percent.
Inventories of housing of all kinds were lower at the end of June. The MLS attributed much of the decline to discouraged sellers who were disinclined to enter an unpromising market.
For buyers, the long wait for more affordable pricing is bearing fruit.
Joseph and Andrea Raetzer have rented a house in Briarcliff Manor for more than a year as they watched the market change. The couple have been shopping for a house of their own for several years.
Joseph Raetzer recalled brokers telling him in the heated market of two years ago, "Make an offer now before prices go up."
"Now the line is, 'Make an offer now. This is the opportunity of a lifetime!' " he said.
Nationally, the housing market showed more signs of life as sales of previously occupied homes rose for the third straight month in June, according to the National Association of Realtors.
But prices are expected to keep falling well into next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 last month, down 15 percent from last year but up from $174,700 in May.
In Rockland County, sales of houses fell 16.8 percent last quarter and the median price was $420,000, down 7.39 percent.
The Westchester-Putnam MLS said that this year's sales performance would match that of the early 1990s if the second-quarter trends continued. But economic benchmarks in the region provide a mixed picture of what's ahead.
Sharply higher unemployment - it reached 7.5 percent in the Lower Hudson Valley last month - would dampen the desire of some consumers to close on housing deals, the MLS said.
But the stock market is rising, which breeds a greater sense of financial security among some, the MLS added. Foreclosures and short sales are higher, but not at levels that are threatening market fundamentals as they are elsewhere in the country. Mortgage rates remain at historically low levels, running between 5.5 percent and 5.8 percent for a 30-year fixed conforming loan.
Issues involving appraisals are sidetracking some housing deals, said Chris Meyers, chief operating officer at Houlihan Lawrence. A new federal rule requires lenders to obtain valuations through a clearinghouse instead of by contracting directly with appraisers, he said.
Some appraisals are coming in at levels below what the buyer and seller agreed on, Meyers said. About 10 percent to 15 percent of deals are affected. It has pushed back some closings as buyers are forced to scramble to raise a larger down payment, and in some cases deals fall apart, he said.
The overall market is improving, he said, but he didn't expect to see improvement in sales until 2010.
Greg Rand, managing partner of Better Homes and Gardens Rand Realty, said he didn't expect a bottom in the local market until next year, followed by several years of flat results.
"The recession has to end, and we have to get our appetite again," he said.
Some sellers feel frustrated by the pace of the market.
Joan Ponzini, a retired teacher, lives in a new development in Ossining. She said she put her three-bedroom house with Hudson River views on the market about two years ago for $835,000. She has since lowered her price to $689,000, but has received no offers.
The house is one of six that have been on the market in her development for the past year. Only two have sold, and those deals were handled by relocation companies affiliated with the sellers' employers, she said.
"Buyers have always been demanding," said Ponzini, 62. "I guess they expect a lot more now."
Joseph Raetzer said he and his wife are hoping to find a house to buy in the $700,000- to-$750,000 range. Prices that were "astronomical" two years ago are better now, although the couple haven't found what they are looking for yet, he said.
One issue is job security, said Joseph Raetzer, 34. The New York City attorney is concerned about layoffs at his firm.
The couple, which had their third child about a week ago, are prepared to stay in their rented house until they find the house they want at a price they are comfortable paying, he said.
"It seems like sellers are still disconnected," he said. "For whatever reason, they're not coming down."
Additional Facts
On the Web
Westchester-Putnam Multiple Listing Service report
www.wcbr.net
More area housing data
www.lohud.com/data
