Sales of homes in the Rye City School District increased by 21% this quarter, versus first quarter of 2012, while the number of homes on the market declined by 7.8%. 

 

Sales of homes in the Rye City School District increased by 21% this quarter, versus first quarter of 2012, while the number of homes on the market declined by 7.8%. In short, homebuyers are getting off the fence and jumping on deals.

 

“Buyers are asking: Is there going to be more inventory?” says Judi Smith, newly appointed manager of the Houlihan Lawrence office in Rye. Apparently, the short answer is no. Demand is outstripping supply.

 

Smith, who recently took over responsibility for the entire Sound Shore community for Houlihan Lawrence, notes that the Rye market has been leading the way as far as prices, reduced time on the market, and number of bids per home are concerned.

 

Why? Smith’s response is: “After working in Larchmont and Mamaroneck for several decades, you notice what Rye has to offer. It’s saturated with amenities.” And buyers are concerned that the ultra-low interest rates may not persist. “That in part explains the strong activity across Westchester – both in the Sound Shore and up along the Hudson.”

 

The strength of the Rye market is also evidenced by a new phenomenon: buyers signing contracts for homes that haven’t been built yet. Occasionally, this happened during the last boom, but nothing to the extent of recent activity. It’s now common for buyers to sign unconditional contracts, off of blueprints, for houses that won’t be completed until 2014.

 

And what about the so-called “shadow inventory” hanging over the U.S. real estate market? Are there sellers who want to sell but aren’t ready to because their house might be under water?

 

“Not here,” says Smith.