Westchester home sales are seeing a
‘steady erosion’

The multifamily segment was the silver lining

TRD New York /
Jan.January 10, 2019 11:10 AM

Greystone on Hudson in Westchester

Westchester’s luxury market has taken a hit.

For Westchester’s residential real estate market, the fourth quarter wasn’t the season for giving. In the final three months of the year, the median sales price of luxury homes in Westchester slid 12.2 percent to $1.8 million from $2.05 million a year earlier, according to Douglas Elliman’s latest market report. At the same time, the number of sales in the luxury segment plummeted 32.2 percent.
The broader market saw some pronounced shifts, too. Overall, the median sales price dipped 11.8 percent to $470,000, while sales fell 22.2 percent. In the single family market, the price dropped 11 percent, with sales declining 29.9 percent. That marked the sixth straight quarter of year-over year declines.

“It’s a steady erosion of activity,” said Jonathan Miller, author of the report and CEO of appraisal firm Miller Samuel. “In a declining market, the sellers are late to the party — and in a rising market, they’re ahead of the party.”
The decline stems from factors including interest rate increases, tax law changes and housing affordability issues, Miller said. While some buyers may be more motivated after seeing their tax returns, the macro environment won’t change — so the trend in Westchester is also unlikely to change drastically.

In the condominium market, sales decreased 22.3 percent with the median price falling 2.3 percent.

On the other hand, there was shift in more multifamily sales, which ticked up 7.5 percent. A previous report noted that multifamily properties were “selling like hotcakes.” The surge was attributed to being able to avoid the $10,000 cap on state and local property tax deductions with investment properties. The cap doesn’t apply to multifamily homes being rented out for income only.


Related Articles

arrow_forward_ios
Ray Kroc and his Santa Ynez Valley ranch (Wikimedia, Google Maps)

Huge California ranch owned by McDonald’s CEO Ray Kroc lists

Huge California ranch owned by McDonald’s CEO Ray Kroc lists
Red Apple Group’s John Catsimatidis and Muss Development’s Jason Muss (Getty; iStock)

Four Brooklyn landlords accused of illegally inflating rents

Four Brooklyn landlords accused of illegally inflating rents
A study found that NYC renters lose $178M per year due to long-term rentals being reallocated to the short-term market (Getty; Pixabay)

Airbnb costs New York City renters $178M a year: study

Airbnb costs New York City renters $178M a year: study
111 West 57th (Photo via FDNY Twitter)

Spinning crane at 111 West 57th Street casts debris on street

Spinning crane at 111 West 57th Street casts debris on street
Caliber Home Loans CEO Sanjiv Das and AmeriHome CEO Jim Furash (Photos via Caliber Home Loans; AmeriHome; iStock)

Two mortgage companies delay IPOs amid market volatility

Two mortgage companies delay IPOs amid market volatility
Denizen Bushwick at 54 Noll Street (Photos via Denizen Bushwick)

All Year nears $650M financing for Bushwick luxury rentals

All Year nears $650M financing for Bushwick luxury rentals
The decline in contract activity may signal a drop in sales in the coming months (iStock)

Pending homes sales dipped in September

Pending homes sales dipped in September
(Getty, iStock)

Refinancings drove up home mortgage apps last week

Refinancings drove up home mortgage apps last week
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...