Real Estate Update: Spring 2015

Once again this year we asked Ted Holmes of Douglas Elliman Real Estate in Chappaqua and Michael Levy of Grand Lux Realty in Armonk to report in on the 2014 and 2015 spring real estate market. Here’s what they told us.

How did the 2014 real estate market perform in Armonk, Bedford & Chappaqua?

Overall the local market was very stable with most price indicators increasing over 2013. The average sales price in Armonk, Bedford & Chappaqua last year was $1,254,180 for a 16% increase. The median sales price increased 2% to $900,000. While the number of sales in all towns combined was down 6% some towns showed dramatic increases including Pound Ridge where sales were up 12% and Bedford Hills where unit sales increase by 43%.

What trends do you see for the spring market in 2015?

Ted Holmes of Douglas Elliman Real Estate

Prices have been trending higher for the last four consecutive years. Lower inventory will result in competition among buyers. More consumers are trading up or renovating their current homes. Interest rates are still at all-time lows and should stay that way through the summer.

Are there different dynamics in play for luxury versus median priced homes in & around our towns?

The luxury single-family market outpaced the overall single family market. The median sales price in the sector increased 9.4% to $2,000,000 from the prior year quarter. While the average sales price increased 8.1% to $2,388,810 and the average price per square foot increased 10.8% to $471 respectively from the prior year quarter. Unlike the overall single family market, luxury listing inventory jumped 15.5% to 538 as rising prices are pulling more high end homes onto the market.

What advice would you give buyers looking to move into our towns?

Know your budget and how much you can afford. Get pre-approved by a lender. Research the communities and schools that best fit your desired quality of life. Drive around the areas and visit open houses. Ask questions? Connect with an agent that has knowledge in the areas you are looking.

What advice would you give sellers?

Prepare your home for the market. Make sure you have an agent with the best team to help with preparing the home for the market including a professional stager, handyman, painter, and landscaper. Have a home inspection done before you list the house for sale. Hire an agent that you know you can trust that will be your partner and advocate for you throughout the transaction. Make sure your agent truly understands how to market homes in today’s online media and they have a strategy beyond what the broker is going to do for them. Make sure they understand who the buyer is for your home and how to market and speak to them.

How did the real estate market in Armonk, Bedford & Chappaqua do in 2014? 

Michael Levy of Grand Lux Realty in Armonk

In 2014, 308 single-family homes sold in Armonk, Bedford, & Chappaqua. The lowest price home sold for $332,750. The most expensive was $27,500,000. The average home sold for $1,351,575 at an average price per square foot of $325.33. On average, sellers reduced their price by 2.8% to find a buyer and buyers were able to negotiate the price by 4.1%. Total price reductions + buyer negotiation added up to 6.9%. Our rule of thumb is that anything less than 10% means strong price stickiness.

What trends do you see for the spring market in 2015?

The market is definitely stronger this year than it was last year, so far. In Q1 2015 there were more home sales than last year – 66 vs. 49. The bottom of the market is higher. The top of the market is lower. The average price is nicely lower (by 20%). This could be the reason that so many more homes sold. Also the Days On Market has dropped from 221 to 118. That’s big and could be due to the lower prices. The price per square foot is down by 9.3%. I predict that the market will continue to be robust during the next quarter, with prices stabilizing and volume higher than the same quarter last year. Here’s some stats for you comparing Q1 2014 with Q1 2015:

1/1/14-3/27/14: 49 sold single-family homes in Armonk, Bedford, & Chappaqua PO. Average Days On Market: 221. Lowest price: $340K. Highest price: $8.7M. Average price: $1,452,271. Average price per square foot: $336.14.

1/1/15-3/27/15: 66 sold single-family homes in Armonk, Bedford, & Chappaqua PO. Average Days On Market: 118. Lowest price: $438K. Highest price: $4.5M. Average: $1,149,698. Average price per square foot: $304.98.

What advice would you give buyers looking to move into our towns?

Explore different neighborhoods, towns and school districts. Compare the sale prices, and supply and demand stats for different neighborhoods to be sure you’re buying in a desirable area. Buy what you like and will enjoy.

What advice would you give sellers?

Compare your house to your competition and price yourself favorably against your competition to sell more quickly. Stage your house properly so it’s desirable to the highest percentage of the buyer pool. Repair broken items. Remove risk for buyers. Do as much of the GLR “Marketability Checklist” as you can in order to make your house more sellable.

(Ted Holmes, Douglas Elliman Real Estate, 101 King St., Chappaqua, 914.548.6179: www.edwardholmes.elliman.com)

(Michael Levy, Gran Lux Realty, 428 Main St., Armonk, 914.273.9688; www.grandluxrealty.com)

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