Cold Weather Freezing Out Home Sales?

Could the unseasonably cold temperatures in the northeast be responsible for a decline in bidding competition in our area? Redfin reports that in colder markets—Boston and Baltimore leading the pack—bidding wars fell dramatically, in some markets as much as one-third last month alone. Snowstorms, icy conditions and artic temperatures shut down open houses and may be responsible for keeping thousands of prospective buyers holed up in their current spots.

For the motivated buyer, this meant less competition for popular properties and, often, a faster turnaround from offer to close—sellers were, in many cases, more motivated than ever to finalize a sale in light of the seeming lack of opportunity elsewhere.

In most years, January sees sharp rebounds in the real estate market—in 2013, competition surged 8% on the heels of nearly 7% in 2012 and 8.3% in 2011. But the numbers are still pending—will this month’s polar vortex, frigid temperatures and frequent snowfall overpower this ongoing trend? Or will the beginning-of-year turnaround be able to overcome prospective buyers’ desire to hunker down until spring?

Think Brooklyn is a better buy? Think again.

For decades Brooklyn has been the go-to for Manhattan families craving more space and better prices. But that age-old trend seems to have past its prime. Long on an upward spike for both rents and purchase prices, in the final quarter of 2013 Brooklyn homes hit an 11-year record high with inventory continuing to fall far behind the massive demand. The median home sale price in Brooklyn jumped 11.2% year-over-year, to more than $570,000. What’s more, the absorption rate—the time it takes to sell off all available homes—dipped from nearly 10% in late 2012 to just under 6% by the end of 2013.

Even if the sub-$600,000 range isn’t a total shock, keep in mind that’s the median price across the entire borough. Burgeoning hotspots like Williamsburg and Greenpoint far exceeded these numbers, growing to a median sale price of $849,000—an increase of nearly 25% since the same time last year—for condos. Clinton Hill at $689,000 wasn’t far behind but, perhaps, what’s more staggering is the 38% jump in price that reflects.

As a result, many prospective Brooklynites looked outside of the traditional post-Manhattan go-tos, exploring neighborhoods such as Fort Greene and Prospect Heights, who experienced similar lifts and median sale prices as that of Clinton Hill. Likewise, newcomers such as Bedford-Stuyvesant, Crown Heights and Bushwick jumped, too, hitting a median sale price of $450,000, a 19% jump year-over-year.

Where to next? These massive increases have led many to look in the suburbs, where home prices mirror that of Brooklyn rates—with, of course, the promise of more space and a host of other desirable amenities. In Westchester, the median home sale price for October 2013 – January 2014 ranged from $2.47 million in Waccabuc—a hamlet in the town of Lewisboro—to under $200,000 in Yorktown. Similarly in Nassau County, median sale prices for this period hit an unsurprising high of $2.61 million in posh Old Westbury, down to just under $300,000 in spots like Freeport, Elmont and Uniondale.

MARKET REPORT: AUGUST 13, 2013

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Tarrytown, NY Third Fridays! Third Fridays continue in Tarrytown...and the next one is this week! Explore Main Street and Broadway and celebrate summer with art openings, late night shopping, restaurant specials, free live music and more, for all ages. To see the complete schedule, click here. Cedar Grove, NJ Farm Stand: Cedar Grove's last operating farm closed 30 years ago. But this year, the Historical Society is bringing back traditionally-grown veggies, harvested on the farm! Get local produce, take tours and enjoy the park, Saturdays through 9/9. Click here for more. Greenwich, CT Paddleboard Yoga:Strike a pose...on the water! This Saturday try "SUP" Yoga, AKA Standup Paddleboard Yoga. Attendees will paddle out, anchor and have class on boards (rentals available). This class is available to Greenwich residents only. Click here for more.