How’s The Market Westchester?
The #1 question realtors get asked is “how’s the market?” It’s such a big question. I almost never know where to start. Different people think different criteria tell the story. Below are six that I think best answer the question, along with trend graphs as of September 30th. All graphs depict a 12 month rolling average to smooth out the trendlines.
In Westchester, there were 39 new single family listings in September compared to 39 new single family listings in August. As you can see from the trend graph below (showing the data on a 12 month rolling basis), Westchester has been up and then down in turning over property since the beginning of the year, but the overall trend in the last three years has been up.
Months Supply is a good indicator of a sellers’ versus a buyers’ market. Typically, a market that favors sellers has less than six months of supply (listings). Westchester is well under two months and still solidly in seller territory. In a seller’s market, you can expect to pay your own closing costs and other negotiable amounts and you can also expect competition from other buyers. Know what you want, have your financing and buyer agent tee’d up and be prepared to move quickly. I think we’ll see this shift up somewhat when the October numbers come out, but not radically.
Price reductions are a mixed bag as far as being an indicator of any trend, but people still love to talk about this metric.
Sometimes a seller starts out unrealistic and has to “right-price.” Sometimes the agent is from out of area and doesn’t know that Kentwood prices are higher than Loyola Village. It takes some real analysis of the price reductions to see if there is a broader trend working.
So far this month, we’ve seen 14 price reductions in Westchester. This seems high, although I haven’t been tracking this metric lately. Contact us if you want the list, although many of the properties are under contract already. As you can see from the graph below, most Westchester homes do sell at their list price, once they get “right-priced.”
Special Note About Out Of Area Agents
As I looked at each of the price reductions this month, I was struck by the fact that most properties on the list are represented by out of area agents, most notably South Bay agents and discount brokers (Purplebricks & Redfin, specifically). If your listing agent doesn’t understand and have relationships with buyers who are attracted to Westchester, the likelihood of mispricing is higher. It’s a crime that the two properties with the discount brokers aren’t selling at their current list price (or higher).
You might think you’re saving yourself the big commission bucks using the discount broker, but the longer your house sits on the market, the bigger the question mark about what’s wrong with it. I saw one beautiful property at what looked to be a good price, listed by a strong local agent and my eyebrows literally went up, wondering why the property was languishing on the market. Then I looked closer and saw that she inherited it from an out of area agent. That’s how strong the taint is – a great agent who understands our area is having a hard time moving a beautiful house at a good price because another agent mispriced and let the property sit. Don’t make the same mistake.
Price Per Square Foot
The average price per square foot is on a steady upward march in Westchester and has been since at least 2015, currently hanging out at $717/ft for single family homes in Westchester. Different property types and bed/bath configurations likely have their own average PPSF. Contact us if you want to see a graph for a particular property type or bed/bath configuration or sub-neighborhood of Westchester.
Days On Market
Days on market can be an indicator of demand. If DOM is trending down, properties are moving faster (higher demand). In Westchester, DOM has been pretty flat most of this year at 28 days. 2017 was crazy, but 2018 has been stable. 28 days on market is still a great number and an indicator of strong demand.
Back on Market
Two properties have fallen out of escrow in Westchester in the last seven days.
Assumptions & Other Markets
This report was written for single family homes in the Westchester community of Silicon Beach. Similar reports can be generated on request for neighborhoods and other carve outs within Westchester 90045. For example, in Westchester there are significant price differences between the neighborhoods, notably east of Sepulveda vs. west of Sepulveda and north of Manchester vs. south of Manchester. We can generate reports for other property types, too! Contact us for custom reports.
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