Westchester, NY Housing Market Update 2/21/2011

If you read about the housing market as I do, it shows stagnancy and shouts gloominess, yet looking at statistics and economist views, the NY metro area is holding its own. Many cities are feeling a possible double dip effect…California, Miami, Seattle, Minneapolis, yet here in the New York State area there is a positive appreciation of 3.27%, excluding distressed sales. Overall, improvements are also being seen in the 55+ housing market, a market that was stalled in the second half of last year.

Not so bad! Interest rates are still low, but gone are the 4% rates. The national average interest for a 30-year, fixed-rate mortgage has broke the 5% rate for the first time since May 2010. This will impact those looking to refi more so than home buyers. Rates are still historically low, and with a slight raise in these rates will likely spur a boost in sales.

The future is uncertain, true, yet homeownership can bring many rewards. I have personally seen the benefits in my own business where I reside in the little village of Croton on Hudson, where trade- up buyers have taken advantage of selling their first home with a median equity gain of $33,000 and more; the typical seller who purchased a home eight years ago experienced a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent. Sellers who purchased on the high end of the market, and needing to sell have been hurt by the adjustment in home values, but the conventional and majority of homeowners who stay for a normal period of homeownership of 7-8 years.

The fact is most long term sellers see sound gains with the value of their home... the longer they own the better the investment.

Today's Rates

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Month	TODAY 2/21/11	YESTERDAY	CHANGE
30 Year Fixed Rate	5.07%	5.06%	0.01
15 Year Fixed Rate	4.23%	4.21%	0.02
FHA 30 Year Fixed	4.90%	4.88%	0.02
JUMBO 30 Year Fixed	5.75%	5.74%	0.01%
5/1 Yr ARM	3.68%	3.66%	0.02%