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 seven that I think best answer the question, along with trend graphs as of October 31st.
Average Sales Price
Westchester’s average sale price for single family homes has been flat-ish since June, currently hanging out at around $1.25M.
Westchester, however, is a big place with more than a half dozen distinct neighborhoods, each with their own pricing eccentricities. Kentwood’s average single family home price, for example, is currently a hair under $1.53M, while Osage’s is a hair over $1M. There are distinct price differences even within the neighborhoods. Contact us for details and/or to request custom graphs.
In Westchester, there were 20 new single family listings in November compared to 41 new single family listings in October. While a drop is typical for us this time of year, this year’s drop from October to November is dramatic.
The second graph below shows the numbers on a 12 month rolling basis to smooth out trend line, including seasonal variations. That graph shows our new listings number hanging out in mostly the same band for most of the last year. It’s starting to look like Westchester is just getting back to a regular normal.
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 was up again in November, but remains solidly in seller territory at 2.5 months. We were higher two years ago.
In a seller’s market, buyers can expect to pay their own closing costs and other negotiable amounts and they can also expect competition from other buyers.
Price Reductions aka “Right Pricing”
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” to get into escrow. 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.
We saw a whopping 30 price reductions in Westchester in November. That’s a whole lot of “right-pricing.” 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.” Note that this particular graph is a 12 month rolling average to show the more general trend.
Price Per Square Foot
The average price per square foot is on a steady upward march in Westchester and has been since early 2012, currently hanging out at $732/ft for single family homes in Westchester on a rolling 12 month average basis (shown in the graph below). The actual PPSF for November was $738/ft. The rolling 12 month average tends to smooth out the bumps in the bigger picture.
I bet you wish you’d gotten in in 2012 at $406/ft, right? 😃
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 continues to be pretty flat, as it has been 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
One property fell out of escrow in Westchester in the last seven days. Properties that have fallen out of escrow sometimes represent a great opportunity for a bargain. Contact us for details.
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 versus 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.