Westchester Real Estate Talk

New Homes Getting Smaller ...Smaller

The Wall Street Journal's article, New Homes Getting Small...Smaller is another reflection of the economy in recession.  Our desire for bigger and bigger may just be a thing of the past because McMansions are more costly.  During times of recession our appetite for bigger and better wanes.  David Crowe, the NAHB's chief economist says, "We also saw a decline in the size of new homes when the economy lapsed into recession in the early 1980's.  And further went on to say, "The decline of the early 1980's turned out to be temporary, but this time the decline is related to phenomena such as a increased share of first-time home buyers desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the nest home, tighter credit standards and less focus on the investment component of buying a home.  The new norm bigger may not be better.

Time To Downsize

The Wall Street Journal's article,  "Trading Down," describes the dilemma of baby boomer's who wanted to use their home as a retirement fund.  The study soon to be released by Joint Center for Housing at Harvard determines that age group shows a decline in mobility, senior citizens show the dipped the most.  The decline of value in homes, high mortgages and equity in their homes mean they might just be staying put!  

Smaller homes in affluent areas of New York, California and Washington, are difficult to because their limited supply.  Westchester County is a prime example of the premium priced homes.  Boomer's usually downsize when their youngest leaves the nest but today with their adult children are returning home.  Housing costs lower by moving father away from large metropolitan areas which is impractical for senior unable to retire.  Even sentimental memories of adult children may stand in the way of their parents selling.  We are reminded of the these wise words, "Timing in life is everything!"

An Antique House To Love In Pound Ridge

   

THE LOVED ANTIQUE

 
 
  

Late in April I received an inquiry from a young woman wanting to see  homes in Northern Westchester.  Sonny and her husband had  experience building and buying homes before so I asked about  their wish list.  At the very top of her list was an acre of land for her passion of gardening.  We met at my office in Katonah the very next day.  First, we drove around the area so that she could become familiar with all it has to offer. The Katonah Museum, Caramoor and the natural beauty of terrain are just a few.  On our way to the first home in Pound Ridge we passed through Scott's Corner, a small shopping area in the Town of Pound Ridge.  We arrived at the first listing which needed a great deal of work but she did not see to mind.  The house was on over 2 acres of land which she loved.  When we were done for the day she asked if I could meet her and her husband on Sunday.  The following weekend the three of us went back to the home with the great piece of land.  Sonny and Tom tried to see if they could make the house right for them.  Our next stop was an antique on over 2.50 acres, with natural outcroppings, a pond, tall trees and certainly room for a great garden.  And as I opened the door they gasped at the treasures that were in this 1800 square foot house  The living room with it's stone fireplace, vaulted ceiling and beams were reminiscent of their old camp home in Lake George.  They are now the proud owners of, "This Old House."  And although they will keep within the floor plan and it's treasures I can't wait too see their transformation of old and new.

More Mortgage Rate Talk

The New York Times article, "The 20-Year Mortgage Alternative," adds an additional lending solution for those looking to refinance or do not was a long term 30 year loan.   The 20- Year mortgage rates are attractively low. Theyprovide a borrower with one third less interest payments over the conventional 30 year loans with little or no increase to month payments.  Steven Habets of Threshold Mortgage Group in Westport, Conn., employs an example of a borrow that  took out a one million dollar loan four years ago at a rate of 5.875 and his monthly payment is $5,915, the balance owed today is $945,000.  Today, with the 20 year loan and adding in the 5,000 cst of the refinance, the new payment would be $6,139, just $224.   The benefit of paying your mortgage off 10 years earlier that a thirty years loan or less of payment for a 15 year mortgage loan. 

Hudson City Savings Bank in Westchester County offered a 20 year mortgage rate for 4.75%, last week. Borrowers can qualify for this new product with a 20 per cent down payment and a minimum 720 FICA score for a  loan amount of less than $417,000.   

 
Something to think about if you have a jumbo mortgage and you are looking at a long term payout with high interest rates.

Incentives For Homebuyers

U.S. Average Weekly Mortgage Rates 

Mortgage rates are low enough that they provide an incentive for buyers to take the plunge.  Typically early summer is when homeowners in Westchester County get serious about wanting to move their home.  And as a result, the price of homes that you thought were too high drop.  Today's article in The Wall Street Journal  article provides rates over the past week but highlights 15 year mortgage rates at historic lows.

Katonah, The Little Village That Could!

Talking About Katonah

 Katonah, one of Westchester County's best places to live just 40 miles from New York City. One of three villages that are in the Town of Bedford. This quaint village architecturally looks like a New England Town.  Residents commute to Manhattan by Metro North to Grand Central and have a one hour and ten minute ride. This charming Village is home to The Katonah Museum of Art, nationally recognized,  Caramoor Music Center and The John Jay Homestead, are just few of the cultural attractions it offers residents.  Families enjoy holiday parades, Katonah Village Chamber of Commerce sponsored programs are just some of the many fun things to do.  The Katonah Lewisboro School District, ranks among the best schools in Westchester County. 

Residents have can choose from country estates, horse properties, family neighborhoods or homes surrounding  Katonah Village. 

If you would like more information about living in Katonah my e-mail address is rstengel@ahoulianlawrence.com, call me at 914 450 6566.