Will Housing Affordability Improve?

Housing affordability in the United States experienced a slight improvement last year, marking the first positive shift in four years. A household earning the median income of $83,782 would have allocated 41.8% of their earnings toward monthly housing costs for a median-priced home, a modest decrease from 42.2% in 2023. Despite this progress, affordability remains significantly strained compared to the 30% threshold commonly deemed manageable.

Ralph’s Take

Will housing affordability improve in 2025? It’s difficult to predict, but mortgage rates are likely to play a key role. In 2024, the average mortgage rate was 6.72%, a slight dip from 6.87% in 2023. While modest, this reduction contributed to a minor improvement in affordability last year. Despite this progress, the market remains challenging for many buyers. Down payment assistance programs are becoming more widespread, but the ongoing shortage of inventory continues to hinder accessibility. A continued drop in mortgage rates could reduce housing costs and inspire homeowners who have postponed selling to list their properties, thereby boosting inventory. Both are essential steps toward improving overall affordability.

Westchester Weekly Market Tracker 📈

• ‘Coming Soon’ Listings: 19 ↑+6

• New Listings:  146 ↑+95

• Price Reductions: 38 ↑+13

• Pending Sales:  102 ↑+17

• Closed Sales: 128 ↑+38

💰 Highest Sale: 189 Mead Street, Waccabuc: $4,150,000

_{Property Type: Single-Family. OneKey Multiple Listing Service, Inc. 1/3/25 - 1/10/25.}

Ultra-Luxury: The Biggest Deals of 2024

The ultraluxury segment of the U.S. housing market had another banner year in 2024, with seven single-family homes selling for $100 million or more — surpassing the five such sales recorded in 2023. While the record of eight $100M+ deals set in 2021 remains unbroken, this year’s activity underscores the remarkable resilience of this exclusive market. Many of 2024’s priciest transactions occurred off-market, highlighting the discretion sought by buyers and sellers at this level.

Here were the top 10 deals of 2024:

• Malibu, CA - Undisclosed Buyer - $210M

• Palm Beach, FL - Michael Dorrell - $150M

• Palm Beach, FL - Daren Metropoulos - $148M

• New York, NY - Vladislov Doronin - $135M

• New York, NY - Undisclosed Buyer - $117M

• Los Angeles, CA - Undisclosed Buyer - $112M

• Aspen, CO - Steve Wynn & Thomas Peterffy - $108M

• Carpinteria, CA - Robert Friedland - $96M

• Malibu, CA - Laurene Powell Jobs - $94M

• Miami, FL - Jeff Bezos - $87M

Ralph’s Take

The ultraluxury market continues to be a beacon of stability, with demand driven by exclusivity, location, and unique features. For sellers, it’s a reminder that positioning and privacy can drive premium prices. For buyers, it’s about securing rare opportunities with significant long-term value.

How Much Equity Did You Gain in 2024?

I’m excited to extend this offer to my newsletter readers:

Every January I set a few hours per day aside to prepare Home Equity Reports for my past clients. These reports provide a level of detail and accuracy that surpasses platforms like Zillow or Redfin.

If you would like to learn your home’s current value and your equity position, simply reply to this newsletter, call, or text message me at (914) 202-1101.

Visual of the Week 🖼️

Two out of three homeowners have at least 50% equity in their homes. To put a more tangible number on it, CoreLogic shows the average homeowner has $311,000 worth of equity built up. That kind of net worth can go a long way if you’re trying to make a move. That’s part of the reason why the share of all-cash buyers recently reached a new high. According to an annual report from the National Association of Realtors (NAR), 26% of buyers were able to buy without a mortgage

Mortgage Watch 📉

Today’s average 30-year fixed mortgage rate stands at 7.24%, the highest since May 30, 2024. Rates have risen following the Fed’s signal to pause rate cuts and a stronger-than-expected December jobs report.

> 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.

Westchester Events

Saturday, January 11th - Sunday, January 12th

• 1/11: Animals in Winter

• 1/11: Animal Tracks in Winter

• 1/11: Fairy Ice Palace Construction

• 1/11: Tree Tapping

• 1/12: Winter Train Show

• 1/12: The Amazing World of Ants

Winter Real Estate Guides ☃️

This market is not perfect. I'm here to help.

Schedule a consultation to develop your 2025 game plan now.

Reply to this email, call, or text message me anytime at (914) 202-1101.