Our current market conditions make it weary for most purchasers looking in the Westchester Area, and exciting for most sellers. There are a couple of moving parts that create a sellers market within the Eastchester School District. Firstly, the law of supply and demand applies to all markets including the housing, and what we are seeing is a low supply of inventory and many people who want to buy in the neighborhood. This factor alone will drive prices up quickly depending on how high the demand is relative to supply. As of December 2016, Eastchester had 3.3 Months of supply on the market. This simply means at the current rate of sale (i.e. 30 days on market average for a sale to take place) that all homes that are currently on the market would be sold in 3.3 months. This is a pretty strong sellers market, as Real Estate Experts state that a completely balanced market is more like 6 months of inventory. If there is above 6 months of inventory on the market than we are in a buyers market.
There is a ray of hope for buyers, and that is the historically low interest rates on conventional loans. This make affordability slightly easier, although the prices seem to be increasing quite quickly. As interest rates start to climb after the 2016 Presidential Election, we may see some initial buyers get a sense of urgency and begin to purchase, along with some buyers being knocked out of the markets for higher priced homes because of affordability unfortunately, although this may make the market more balanced overall.
The slowest sector we are seeing currently is the luxury market, which seems to have a mind of its own in the Real Estate Market and does not typically follow the traditional trends. The luxury sector follows different market conditions, typically, the luxury sector does quite well based on the conditions of other financial markets (stocks, bonds etc.). Many predict now that with a republican in office that we will see less regulation on the financial markets and perhaps strong growth there, creating a strong luxury market!