ORANGE COUNTY NY REAL ESTATE MARKET REPORT - 2ND QUARTER | 2011

ORANGE COUNTY REAL ESTATE MARKET REPORT

Real Estate Market Overview

2ND QUARTER | 2011

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The Orange County real estate market continued to experience the “hangover” caused by the home buyer tax credit, with sales down 31.5% from last year and only up 11.2% from the traditionally seasonally slower first quarter. The tax credit was particularly effective in accelerating purchasing decisions in relatively lower-priced markets like Orange, pulling sales into the first half of 2010 that would have otherwise closed over the next year. As a result, we’ve seen a decline in activity for almost a full year, resulting in a spring market that did not really materialize. Over the past ten years in Orange, sales in the second quarter increased on average 32.6% from the first quarter, almost three times the increase that we saw in the second quarter of 2011.

Even with the relatively low levels of activity, though, prices have continued to stabilize. The rolling year average sales price, meaning the average sales price measured at the end of each quarter for the previous 12 months, has now hovered between $268,000 and $280,000 for the past two years. Essentially, prices have stabilized at their current levels for over two years, with only small seasonal variations.

We expect that we will see activity in both the single-family and condo markets pick up in the third quarter, as the effects of the tax credit continue to dissipate. Although this will not drive lasting increases in prices, we expect that prices have plateaued at their current levels and will stay there for at least the next year.

Anthony Stokes Pereira

Better Homes and Gardens Rand Realty

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The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding. I strive to continually improve and to do this I listen and take the needs and wants into consideration.

For assistance with any of your real estate needs, please contact me, whether it's to get started on helping you realize your goals and dreams, or just to ask a question - no pressure, no hassle, no obligation - just a friendly conversation. I would welcome the opportunity to make a difference for you.

Better Homes and Gardens Real Estate - Rand Realty, founded in 1984, is the No. 1 real estate brokerage in the Greater Hudson Valley with 25 offices serving Westchester, Rockland, Orange, Putnam and Dutchess counties. Rand has more than 800 sales associates, as well as a commercial real estate company (Rand Commercial Services), mortgage company (Rand Mortgage), title company (Hudson Abstract Services) and insurance agency (The Hudson Group Insurance Agency). The company’s Web sites are: randrealty.com, randcommercial.com, randmortgage.com, www.hudsonabstract.com and www.hudson-group.com. Rand Realty is also on Facebook and Twitter. Anthony Stokes Pereira web site www.anthonystokespereira.com . Information deemed reliable but not guaranteed.