With the unemployment rate still at 8.2% and much of the economy still in recession recovery, the performance of Rye’s residential real estate in the first six months this year is remarkable.
By Robin Jovanovich
With the unemployment rate still at 8.2% and much of the economy still in recession recovery, the performance of Rye’s residential real estate in the first six months this year is remarkable.
Lisa McGowan, who’s with Coldwell Banker, had a different take. “Rye real estate is on fire!” She’s had eight listings in Rye and Purchase this year. “They’re all sold, rented, or under contract,” she’s proud to report. “I love our bubble. Several houses came on the market just last week and most of them have gone to multiple bids.”
Mary Ellen Byrne of Julia B. Fee Sotheby’s says, “There is a marked increase in optimism on the part of buyers. They feel more confident in their personal situation — fairly secure earnings prospects — and are able to take advantage of continued low interest rates.”
Nancy Everett of William Raveis acknowledges, “It’s been really busy. I feel as though I’m working non-stop with listings, servicing the listing, showing properties, assuring buyers. These days, buyers want to be certain they’re making a wise investment.”
All the Rye agents we spoke to agreed on one thing: the homes that are being bought up quickly are either under $1,000,000 or new construction. In both cases, bidding wars are now a common occurrence.
“Buyers want new construction and they’re willing to pay for it, often over asking,” observes Liz Ross of Julia B. Fee.
“We’re also seeing the results of pent-up demand,” says Ross. “Buyers have been waiting for the right house to come on the market, and Rye is a community people want to live in.”
Byrne feels the increase in demand for new or newly renovated homes is due to the change of lifestyle among young families. “Buyers, may of whom are under 40, are busy with two jobs and children and don’t seem to have the same interest in fixing up houses as many of their parents’ generation did.”
What’s noteworthy is how strong the market is well into the summer, with new listings coming on every week and signed contracts the following week. Donna McElwee of Houlihan Lawrence, who’s had a very good year, told us, “Sellers are still listing their homes, keeping buyers still engaged in the market. The ability to ‘view’ listings 24/7 online enables buyers to view the home right away, even on summer vacations, so they can decide if they want to take a second look in person when they return. We have seen the Internet turn a historically cyclical market into more of a constant dynamic market.”
While July is definitely slower than March and April, deals continue to be made, notes McElwee, “and buyers are surprised to sometimes still find themselves in competitive bidding situations.”
What’s truly surprising, says McGowan, is the strength of the rental market. “I have been in bidding wars for rentals with both lessors and lessees. Mind boggling!” When buyers are closed out of deals, they’re renting. And when sellers discover they have a deal on their house and don’t have a next house in mind, they’re renting.
Who’s house hunting? Couples and families renting in Manhattan who are being priced out of that market and are ready to buy, given the low mortgage rates; Rye empty nesters that want to downsize; local families that feel the time is right to make the move to a larger home; and many people relocating here from across the country and around the world.
The market demand “continues to be fueled by builders looking for new projects to meet buyers’ desire for new-construction homes,” says McElwee.
According to Houlihan Lawrence COO Chris Meyers, who happened to be in Rye last week, “Buyers feel a sea change. Everyone was expecting another Groundhog Day, but the data is beginning to show a number of positive trends. The year-over- year increase continues. There are a lot of losing bids.”
Sales are up 17% countywide, pending sales closer to 40% higher, notes Meyers. “Rye is genuinely hot, and Harrison is stabilizing and has a lot less inventory.”
In the Rye City School District, 76 houses have sold this year, compared to 73 in 2011. The average selling price is $2,004,000 versus $1,599,000.
Why is Rye faring better than many other towns in the area?
It’s Rye, not Chinatown, folks.
