Westchester Home Prices Continue to Climb Westchester has seen a continued rise in home prices, especially in suburban areas that offer a mix of space, nature, and proximity to NYC. While this trend started during the pandemic, it hasn’t slowed down and some analysts believe we are at a peak in terms of home values. The demand for single-family homes remains strong, driven largely by buyers looking for more space, good schools, and an easy commute into Manhattan. The median, home price in Westchester County is currently at $752,000, up 10.5% from the previous year. Areas like Rye Brook and Scarsdale are seeing strong competition, with some homes selling for 5-10% over the asking price. The Rental Market is Booming Again in NYC After facing a significant dip in rental demand in 2020 and 2021, New York City’s rental market has rebounded—and then some. This year, rents hit record highs across all five boroughs, with Manhattan leading the charge. The average rent in Manhattan has surged to $5,400 per month, reflecting a 6% increase from earlier in 2024. But what’s driving this? The surge in demand is partly fueled by those who moved out of the city during the pandemic now returning, along with younger professionals relocating for work. Additionally, the difficulty of buying in such a competitive market has forced many to remain renters longer than they originally planned. The Impact of the New NAR Ruling In both Westchester and NYC, real estate agents are adjusting to the recent ruling by the National Association of Realtors (NAR), which has shifted the way commissions work. Some reports show that buyer’s agent commissions in Westchester have dropped from the typical 2.5% to 2% in certain deals, impacting the way agents and clients navigate transactions. Looking Ahead With the average interest rate for a 30-year fixed-rate mortgage in late September 2024 is around 6.08%, with some forecasts suggesting that rates could fall to 5.95% to 6.25% by the end of October 2024 the market may see a slight cooling in Westchester’s high prices. In NYC, the rental market is expected to remain strong. If you're navigating these fast-moving markets, staying informed is crucial. Now’s the time to strategize to make the best decisions for buying, selling, or investing with Link NY Realty. Let’s Make it Happen!

As mortgage rates remain on the lower side, it seems buyers are becoming more comfortable with the idea of higher home prices, as indicated by recent data from the National Association of REALTORS® (NAR). The pace of existing-home sales picked up in January, with buyers overlooking the spike in home prices—hitting record highs—to seize the opportunity presented by the lower mortgage rates and a slight increase in inventory. According to the latest data from NAR, which encompasses closed transactions of single-family homes, townhouses, condos, and co-ops, there was a 3.1% rise in sales from the previous month in January. However, when compared to the same period last year, sales were down by 1.7%. Even though the inventory in January was 2% higher than in December, the market is still experiencing a historic housing shortage, maintaining a tight three-month supply. Buyers continue to navigate through a competitive market. The January report from NAR highlighted several key points: Home prices have seen a notable increase. The median price for existing homes reached $379,100, marking a 5.1% increase from the previous year. Price hikes were observed across all major US regions. Specifically, the median price for a single-family home in January was $383,500, a 5% increase from last year, while condos sold for a median price of $339,400, up by 5.7%.   Inventory levels have slightly improved but are still insufficient. The total inventory for existing homes stood at 1.01 million units, up by 3.1% from the previous year. Yet, the national housing stock continues to be low. NAR President Kevin Sears mentioned, "Increased listings are crucial for facilitating movement in the housing market," highlighting the association's support for the More Homes on the Market Act, aimed at reducing the tax burden on home sales to encourage more listings.   Listings are staying on the market a bit longer. Properties typically stayed on the market for 36 days, an increase from 29 days in December and 33 days from the previous year.  

In March, contract signings for homes hit their highest point of the year, accompanied by an increase in new home sales. However, with mortgage rates now around 7%, there are concerns about future buyer hesitancy. The National Association of REALTORS® (NAR) reported a 3.4% increase in their Pending Home Sales Index for March, indicating modest yet consistent market activity. Lawrence Yun, NAR’s Chief Economist, noted that significant market improvements depend on reduced mortgage rates and more available housing. Regional data showed strong growth in the South and West, with around 7% increases in each, and a smaller rise in the Northeast by 2.7%. The Midwest saw a 4.3% decrease, yet maintained higher year-over-year sales.  Looking ahead, NAR predicts a 9% increase in existing-home sales for 2024 and a 13.2% rise in 2025. Housing starts are also expected to grow by 1.2% this year and by about 5% in 2025. "Given the low sales levels of recent years and the substantial  increase in the U.S. population since then, a rebound in home sales is inevitable," said Yun. He anticipates a steady increase in inventory driven by new home construction and varying life events that prompt people to buy or sell homes. While home sales are projected to climb steadily, NAR expects home prices to continue rising, reaching record levels. Yun explains, "The ongoing housing shortage will push prices up, though at a slower pace than before. Rising prices faster than income growth poses challenges, particularly for first-time buyers." NAR forecasts that the median national home price will increase by 1.8% in 2024 to a new high of $396,800, up from $389,800 in 2023. The association expects a similar price increase in 2025, bringing the median price to $403,800. The pace of price growth in newly constructed homes is projected to be more moderate, with an expected increase of 0.6% to $426,100 in 2024. This slower growth rate is attributed to a shift by builders towards smaller, more affordable homes.