Many people have been asking me if the Westchester residential sales market has shifted.
As you will see from the charts and graphs below, the pace of activity has slowed, but we still see many buyers in the market. It is still a seller's market in Westchester County. Properties that are on the market that are great products still remain strong and are in demand.
How are inflation and rising mortgage rates affecting the housing market?
In response to the high consumer price inflation, the Federal Reserve will continue to raise interest rates at least through this year. Rising rates and high inflation are contributing to the declining number of pending and closed home sales in Westchester County.
Economists in general don’t foresee a sharp decline in home prices, and are forecasting almost nine percent appreciation in residential real estate this year.
The limited supply of homes in Westchester County, the significant equity that many homeowners hold in their properties, historically low unemployment rates, the fact that many millennials are reaching the age when they start to consider home ownership, and owners’ healthy finances are some reasons being cited. In addition, the fact that many homeowners have locked in low-interest financing (the 30-year fixed mortgages having been most popular) is shielding many from the effects of rate increases.
I hope you have a wonderful weekend!