As a real estate agent I get asked this questions a number of times a week. I could answer that question in a number of ways. I could say the market is down, compared to 2 years ago. I could also reply with the market is up compared to last year. The number of days on the market is up, the number of sales per month is up, homes on the higher end–over $800–are sitting on the market longer, homes on the low end–$400 and under–are selling faster. As you already know, data can be manipulated like Play-Doh into any form to get one’s point across. Instead, I like to take a different approach at presenting data by allowing the numbers to speak for themselves, instead of making personal observations about the market. Using my Altos Research data, I will publish a monthly graph to track how the Westchester Real Estate market is doing. If you are an analytical or are on the fence about purchasing a home, this data will be invaluable.
Residential house prices, in Westchester County or any other market for that matter, are a function of supply and demand, and market conditions can be characterized by analyzing those factors. The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory. An MAI value greater than 30 typically indicates a “Seller’s Market” (a.k.a. “Hot Market”) because demand is high enough to quickly absorb available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a “Buyer’s Market” (a.k.a. “Cold Market”) where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall.
I picked 3 different towns in Westchester and compared them to MAI of the county as a whole.
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