If 2016 is any indication, a bright future is in store for the lower Hudson Valley’s real estate market, particularly in Rockland and Orange Counties, where some see the beginnings of a full market recovery.
“2016 was another recent record-breaking year for unit sales, the financial market hit new highs and unemployment levels continue to recede,” said Richard Ellis, owner of Ellis Sotheby’s International Realty in Nyack, New York. “We may finally be turning a corner, with a recovery market ahead of us. And with that we may see home values start to appreciate.”
Ellis notes that real market appreciation has not been seen since 2008, and that various economic variables present in a fully recovered market are on the horizon now, including a strong dollar, low inventory of homes for sale, low interest rates, pent up buyer demand and growing financial markets.
“Like life itself, real estate goes in cycles,” he said. “While these factors are part of our everyday life, buyer mindset is also important and may influence consumer confidence to purchase a home. Political division and international tensions may dampen enthusiasm to purchase. So there are no guarantees. However, last year we predicted 2016 would be much busier than 2015, and we were right. This year we predict much the same for Orange and Rockland Counties.”
Ellis cautions that what happens in one local market doesn’t always happen in another. He is observing that activity on the west bank of the Hudson River in Rockland and Orange Counties is stronger than on the east bank in Westchester and Putnam.
“Sellers and buyers need the professional advice of realtors who know the marketplace well, those that have the ability to market properties successfully and have the backing of a respectable and strong brand,” he explained. “It is good news for sellers that the financial market has responded favorably to the new political environment, regardless of which side of the fence you may be on. Buyers will still have opportunities and should consider purchasing now because of low inventory and possible price appreciation.”
Ellis explained that Lower Hudson Valley real estate sales are following a national trend, with more dollar volume sold in the United States in 2016 since 2006, in Rockland and Westchester since 2005 and in Orange since 2007.
The completion of the new Tappan Zee Bridge in 2018 is expected to drive more sales activity to the west bank of the Hudson River and stimulate new construction as well, particularly in Orange County. “More buyers will come searching for homes in Rockland who began their search in Westchester, particularly in the luxury segment of the market” said Ellis. “The new bridge will stimulate Rockland and Westchester rivertowns, as residents move more freely between counties. Quicker transportation options to New York City make the Hudson’s west side more appealing.”
Key Points for Today’s Sellers
When selling a property, a Realtor should work with the owner to consider the following key points to get the most accurate picture of where a property stands in today’s market, which will help determine market value. Before hiring a Realtor, sellers should take the time to review the value of different real estate companies and brands. “All real estate agents and brands are not alike” Ellis said. “Consider the follow checklist before putting your home on the market.”
- Is the market increasing for units and dollar volume in the property’s location and for the county?
- Ask if inventory and units for sale are increasing. Low inventory levels can put the spotlight on the smaller inventory for sale and sometimes drive prices up, resulting in bidding wars
- What price points sell quicker? Are homes appreciating?
- What is the expected days on market? Ask for examples.
- What time of year generally sells the fastest?
- Who is your target market? Would international buyers be interested?
- What happens if no one is looking at my home once it goes on the market?
For more, download our full market update here.