White Plains real estate defied gravity for three years. For a while - quite a while - it looked as if the housing recession would pass White Plains by with nary a flicker in the prices. The stock market crash on Wall Street shook the system up and prices have started to come down. Even before the crash, single family homes had started to decline in price. But Coop and condo sales remained stubbornly high. The only major sign of trouble was decreased sales volume, but as long as inventories remained low - with few people selling - higher prices were still tolerated.
Cooperatives:
The average price of cooperatives fell 10.9% over the previous year with an average price of $220,000. The fall in prices reflects a general weakness in sales volume combined with increased inventory. There are currently 134 units o the market sales volume at the end of the end of the first quarter of 20 units or about 7 units a month creating an overhanging inventory of 19 months.
Condominiums:
Although sales prices remained stable when compared with the first quarter of 2008, tremendous weakness in the condo market is apparent. First, we have to recall the 17.3% drop in prices during the previous quarter. Second, the inventory is sky-high. An average of 5 units were sold each month during the first quarter and with 134 units on the market - the overhanging inventory is a whopping 26.8 months. Sales volume is down over 63% from the previous year.
Single family Homes:
Single family homes showed a 16.9% decrease in price over the previous year. This decline was by no means an even one. Some desirable areas did not see anything close to that type of decrease. In some ways single family homes are on their way back . Sales volume is similar to the previous year and there is 10 months of inventory - buyers market territory, but nothing like the build up in the condo and coop market.
In general, single family homes are offering the best value right now. The decrease is real, but by no means even. Areas such of the Highlands have held up very well. High end areas have taken a hit. This may reflect the trend towards more modest homes. This is partially due to the Wall Street melt-down and partly a function of how hard jumbo loans are to come by. Buyers have more negotiating room than in the past, but if you are in the market to buy, I would advise against trying to “steal a house.” if its a house you really want, you will have to step up and make a real offer. Sellers need to price homes to sell, not sit and do the necessary repairs and staging to make the home stand out.
The stable prices in condos and coops belie an underlying weakness. The inventories suggest that prices are falling and that these two markets are in retreat. Buyers have the upper hand - no doubt about it.
Seller’s need to price their units to SELL and be prepared to stage their homes. With so much to choose from buyers can afford to be picky - and they are. I’ve had many a buyer walk away because they don’t like the paint! So if you are selling in this market $500-$1000 spent on staging could save thousands later and MONTHS of frustration on the market. Move-in-ready sells. Buyers need to understand that most sellers aren’t desperate. Most will look at “fair” offers - but will blow off ridiculous low-balls. Be aware of the comps if you like a unit and make an offer that makes sense.
Further Reading:
White Plains NY - Housing and Market Statistics for Fourth Quarter 2008:
© 2009 Ruthmarie Garcia Hicks. http://thewestchesterview .com All rights reserved.
Original post:
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Ruthmarie: Our poor sellers just need to be realistic if they want to sell their homes. I listed a home yesterday... and the seller of course was upset because she had hoped for more. But once I explained that whatever she "lost" in the sale of her home... would more than be made up for by the bargain she'd get in the home she was going to purchase... her attitude changed completely. Take care...