914.337.7888 | info@hom-realestate.com
914.337.7888 | info@hom-realestate.com
Higher mortgage rates and the resulting higher monthly payments is not the only issue affecting today’s housing market. The much bigger effect of the higher mortgage rates is the decrease in the number of homes being offered for sale. Most property owners are keeping their homes ‘off the market’ because they cannot afford to give up the mortgage that is financing their home.
The result is LOW INVENTORY. This term is being used by every media source out there to characterize today’s housing market.
Even though there are fewer buyers, there are still buyers in virtually every level of the housing market and they have accepted the higher rates as a fact of life. There are so few houses being offered on the market right now, that there is often lots of competition – the listing goes to “Highest & Best” and many first-time homebuyers get outbid.
How can we see the effect in our market?
Here is a snapshot of several local markets.
| Sold Properties | ||||||
| Median Sold Price | ||||||
| 6/30/23 | 6/30/22 | % change | 6/30/23 | 6/30/22 | % change | |
| Bronxville Village | 28 | 38 | -26.3% | $2,552,500 | $2,850,000 | -10.4% |
| Bronxville PO | 20 | 38 | -90.0% | $1,014,599 | $ 832,500 | +21.9% |
| Eastchester | 30 | 55 | -45.5% | $ 855,000 | $ 830,000 | +3.00% |
| Pelham | 45 | 56 | -19.6% | $1,085,000 | $1,111,250 | -2.40% |
| Scarsdale | 76 | 123 | -38.2% | $1,975,000 | $2,050,000 | -3.70% |
| Tuckahoe | 17 | 33 | -48.5% | $ 859,000 | $ 835,000 | + 2.90% |
The low inventory has caused the volume of transactions to tumble significantly from the first half of 2023 compared to the same period last year as shown on the table above. At the same time, some buyers that bought homes in 2023 paid higher prices than the prior year. For the foreseeable future, we will have a solid sellers’ market. The game changer will be if inventory starts to build but there is nothing pointing in that direction at this time.
Key take away- the real estate market is always fluctuating. The constant is, is that people still want to own their own place. Feel free to call and chat with one of our experienced real estate professionals.
914-337-7888