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Unexpected Costs for New Homeowners

Unexpected Costs for New Homeowners

Plus, Homeownership Rate in Decline, Listings Increase Nationally – Is Westchester Keeping Pace?, Major Waterfront Development Approved for New Rochelle.

Ralph Ragetté Jr
February 07, 2025 • Reading Time: 10 minutes

It’s officially February, and Super Bowl Sunday is here! Here are some fun stats:

🏈 30-second ads sold for $8M, up from $7M.
🏈 Average ticket price is $7,800.
🏈 Legal bets expected to hit $1.39B, total $23.1B.
🏈 White jerseys win more - teams wearing white hold a 16-4 Super Bowl record in the last 20 years.

Here’s Today’s Topics:

81% of homeowner expenses are higher than anticipated
The homeownership rate is declining
Listings are rising nationally, but what about in Westchester?
And a major waterfront development is approved for New Rochelle

Unexpected Costs for New Homeowners

A recent analysis by Real Estate Witch reveals that 81% of homeowner expenses are higher than anticipated, with 69% expressing regrets related to those unforeseen costs. Nearly half of homeowners (46%) say they did not accurately estimate the cost of repairs and improvements before buying. The survey also exposes how little many buyers may know about the true cost of homeownership prior to their purchase. Here’s a breakdown:

Ralph’s Take

Homeownership is a long-term commitment, so it’s crucial to understand as many costs as possible up front. Before signing a purchase contract, I recommend your buyer’s agent:

Request the most recent utility and landscaping bills from the seller
Help you hire a qualified home inspector who can advise necessary home repairs and their potential costs
Put you in touch with a reputable home insurance broker
Verify the property taxes and the assessed value given by the municipality. If the home is over assessed, you may be able to successfully appeal and reduce the taxes.

Westchester Weekly Market Tracker 📈

‘Coming Soon’ Listings: 18 ↓-9
New Listings: 187 ↑+26
Price Reductions: 54 ↑+12
Pending Sales: 148 ↑+18
Closed Sales: 136 ↓-5

💰 Highest Sale: 4 Sherbrooke Road, Scarsdale: $5,400,000 (+4%)

_{Property Type: Single-Family. OneKey MLS, Inc. 1/31/25 - 2/7/25.}

Homeownership Rate in Decline

According to the Census Bureau, the U.S. homeownership rate stands at 65.7%, well below its 2004 peak of 69.2%. Meanwhile, the median homebuyer age has reached record highs: 38 for first-time buyers and 61 for repeat buyers, as rising home prices and high mortgage rates push younger generations out of the housing market. Here are the key factors influencing each generation:

Baby Boomers: Staying in their homes longer, limiting available housing.
Gen X: Less impacted by affordability, as most bought homes earlier, but some have invested in rental properties, limiting supply for buyers.
Millennials: The largest share of homebuyers today, but face affordability challenges, forcing many to rent longer.
Gen Z: Entering the market, but high costs keep many renting, while some prefer the flexibility of renting over ownership.

Ralph’s Take

Each generation faces different homeownership challenges, but since the pandemic, soaring home prices and mortgage rates nearing 8% have made it harder for younger buyers to afford a home. If prices and interest rates had remained stable between 2020 and 2024, homeownership rates would likely be higher today.

Listings Are Up Nationally. Is Westchester Keeping Pace?

I launched this newsletter to bridge the gap between national headlines and local market trends. The saying “real estate is local” will always hold true. Nationally, the number of homes for sale increased by 24.6% in January compared to last year, marking the 15th consecutive month of growth, according to Realtor.com. While that’s encouraging news, the story is a little different here in Westchester County:

Westchester: Homes for Sale (YoY):

Single-Family: ↓ -20.4% (709 in ‘24 → 565 in ‘25)
Condominiums: + 4.7% (203 in ‘24 → 213 in ‘25)
Cooperatives: ↓ -6.8% (400 in ‘24 → 373 in ‘25)

The report also noted that newly listed homes increased by 10.8% year-over-year in January. On the bright side, more sellers are entering the Westchester market as well:

Westchester: New Listings (YoY):

Single-Family: + 6.1% (339 in ‘24 → 361 in ‘25)
Condominiums: + 11.2% (112 in ‘24 → 126 in ‘25)
Cooperatives: + 12.9% (156 in ‘24 → 179 in ‘25)

Ralph’s Take

The national headlines make it sound like the housing market is flooded with inventory, but that’s not the case here in Westchester. That said, we do have some positive momentum with new listings up across all property types. This could be a sign that sellers who have been on the sidelines are finally making a move.

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Major Waterfront Development Approved for New Rochelle

New Rochelle has approved Pratt Landing, a major waterfront redevelopment transforming a former industrial site along the Long Island Sound. This public-private project includes 300+ residential units (99 condos), a 150-room hotel, 40,000+ sq. ft. of commercial space, and a restored "Living Shoreline" with parks, walking paths, and an observation point. Construction starts in 2026, with completion by 2029.

Visual of the Week 🖼

Rent for Another Year? Consider this:

Data indicates that both rent and home prices tend to increase over time. Renewing your lease may be an option, but it's likely you'll face higher rent costs than you do now. On the other hand, purchasing a home allows you to benefit from potential future price appreciation, building equity and increasing your net worth over time. Interested in exploring the cost of a starter home in our market? Let’s connect

Mortgage Watch 📉

Today’s average 30-year fixed mortgage rate is 7.03%, (⬇️ .05%, from this time last week).

> 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.