Home Prices Soar, Setting a New Westchester Record

According to the Hudson Gateway Association of Realtors (HGAR), the median sales price for single-family homes saw a notable increase across nearly all regions in June, despite a drop in sales volume. Westchester hit a new record high for the median single-family home price at $1,031,500 in June—a 12.7% increase over last year’s median home price of $915,000. Here's the highlights of the report:

• Sales Decline: All counties in the HGAR market area saw a drop in sales, with Orange County experiencing the largest decline at 26.9%.

• Price Increase: Median sale prices rose sharply, reflecting higher demand than available home inventory.

• Regional Variations: While the overall trend was positive for home prices, the specific impact varied by region, with some areas experiencing more pronounced changes than others.

Ralph’s Take

Our market continues to be impacted by historically low supply. As mortgage interest rates decrease, I anticipate inventory will increase, helping to stabilize values and boost the number of home sales to a healthier level.

Two Key Terms of a ‘Highest and Best’ Offer

Most buyers are familiar with the traditional terms of an offer to buy a home. They include the purchase price, down payment amount, financing details, desired closing date, and any inclusions or exclusions of items such as furniture or fixtures. However, there are two key terms that can help influence a seller’s decision during “Highest and Best” situations:

Escalation Clause: Allows a buyer to automatically increase their bid if a competing offer is higher. They should always include an initial offer, the increase amount, cap, and a request for verification of the competing offer which triggered the escalation.

• Example: Let's say a buyer offers $800,000 for a home and includes an escalation clause that raises their offer by $10,000 over any higher bid, with a cap of $850,000. If another buyer offers $810,000, the escalation clause will automatically increase the buyer's offer to $820,000.

Appraisal Contingency: Allows buyers to back out, or renegotiate, if the property appraises for less than the purchase price. Agreeing to cover a potential appraisal gap (must have a cap amount) can make offers more attractive to sellers.

• Example: I recently presented 23 offers to a seller — yes, twenty-three! While several buyers bid well over asking, they included a full appraisal contingency. The winning bid, which was not the highest, included a partial appraisal waiver, reducing the risk of appraisal issues and providing the seller with confidence that the buyer would close at the agreed price.

Ralph’s Take

Terms are important to any offer. As buyers look for a competitive edge when offering their “Highest and Best”, they may want to consider adjusting their terms. Also keep in mind that an escalation clause can provide protection to buyers from bidding higher than necessary to win!

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Visual of the Week

Real Estate Still Holds the Title of Best Long-Term Investment

With all the headlines circulating about home prices and mortgage rates, you may be asking yourself if it still makes sense to buy a home right now, or if it’s better to keep renting. Here’s some information that could help put your mind at ease by showing that investing in a home is still a powerful decision.

According to the experts at Gallup, real estate has been crowned the top long-term investment for a whopping 12 years in a row. It has consistently beat out other investment types like gold, stocks, and bonds.

Mortgage Watch

Today’s average 30-year fixed mortgage rate comes in slightly lower than last week, at 6.86%

> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.

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As always, thanks for reading, and have a wonderful weekend!

-Ralph