Full-Year 2012 – Some Cause for a Little Optimism!
It looks as if the roller-coaster ride we have been on since 2007 has finally made it through its steepest decline. While the near term may be somewhat rocky, we no longer expect double digit declines in prices. Having experienced losses of 20-30% from the market highs, we believe sales prices have stabilized. And it’s the single-family homes that are leading this recovery. Most of the aggregated indicators we follow are showing positive gains in both the number of single-family homes sold and average sales price as compared to 2011.
However, multi-families and cooperative apartment sales continue their downward trend. We have yet to see these markets turn up or bottom out. Coops have unique difficulties, as both the finances of the cooperative corporation and potential buyers are closely scrutinized by lenders. Inventory levels are high. Multi-families are also underperforming, which is somewhat surprising since they can generate income. But again, qualified buyers are hard to find and the lending environment remains difficult.
Outlook for 2013 – Where do we go from here?
Expectations remain modest, but single-family homes are selling when priced correctly for location, condition, and tax burden. As seen in the following charts, it’s the single-family properties priced below $399,000 that are selling and offer the promise of neighborhoods revitalizing, as new owners are bringing positive energy to Mount Vernon. We are optimistic regarding the future. Mount Vernon has a lot to offer --- lovely houses with easy transportation to NYC and all of the tri-state area.