The Somers Chase Homeowners Association Board (SC HOA Board) provides the following real estate information to residents of Somers Chase on an “as is” basis for informational purposes. The SC HOA Board does not warrant the accuracy of information or the validity of analyses. The SC HOA Board does not endorse or recommend any real estate agent.
Market reports and analyses:
General feedback from unnamed Coldwell Banker agents on Somers Chase:
Beautiful homes but taxes are too high for the little land you get.
Buyers are looking for newer properties.
No incentives from sellers (this is a buyers market).
Don’t want to pay HOA fees.
Last updated 6/20/2018
Hope Mazolla, Licensed Associate Real Estate Broker, William Raveis
Web page: https://www.raveis.com/hopemazzola
As you have heard (and know first-hand), the Somers $800-$1M market has been sluggish for resales. Somers Chase is not alone in the number of listings sitting unsold. Though smaller homes with no amenities, The Preserve (referenced because it is the 'other' newer subdivision in town with .50 acre properties) has been continually declining in their resale prices.
While previously a booming price segment, with traditionally relatively little inventory available (in both subdivision), there are potentially several reasons for the lag in current demand:
IBM and Pepsi relocation - while this did not create a pool of new inventory, as would be the normal situation when companies relocate, the nearby proximity to the new facilities (Purchase and Armonk) did not place extraordinary hardship on those relocated, so they remained in their current residences (a positive). However, the fact that the businesses moved, meant that any new employees or those seeking housing changes would not feel that Somers housing would be a convenience previously afforded. Ridgefield, Greenwich and border CT towns, also with lagging sales and declining prices are now more affordable and attractive to those employed by Pepsi and IBM as the CT taxes still remain lower. In short, no benefit to moving to Somers if the companies are no longer there and the tax benefits can be stronger in CT.
The highest percentage of incoming residents are from the Boroughs of NYC - Brooklyn, Queens and Manhattan transplants are moving north in record numbers. They are looking for more privacy, smaller homes and in lower price ranges.
The new construction in Somers, priced at $900-$1.4 million now offers larger properties with custom kitchens and baths. Catering to those 'moving up' without the impending work for a 20 year old home (roofing, mechanical replacements,) and updating kitchens and baths. Buyers would rather buy for less and put in the work they want/can afford than buy something that is going to require the work anyway - or pay for work that was done but not necessarily their style.
Buyers are 'living smaller'. The 4,000-6,000 s.f. properties are no longer desirable. Energy costs and monthly utilities are a concern for most moving to the area.
The tax implications of only allowing $10,000 in taxes towards write offs - a big concern for most. However, the calculations, worst case scenario only add $1,200 or so to a person's tax liability. Individuals should seek their scenarios from their tax advisors/accountants but it is not as horrible as everyone thinks. This, however, is definitely one of the concerns of the buyers in the under $1M price range who truly watch their budget.
Looking at the general data and statistical analysis - the buyers' sweet spot is the $700-800K range, followed by lower-priced housing.
Attached please find several statistic charts showing the decline in sales in general, over the last 12 months - from list/sale price to the 10 year historical trend. We are in a downward cycle due to the combination of loss of demand for inventory and new tax changes.
Of the last 3 sales in Somers Chase - occurring over the last year - 2 were not on the market and 1 is in contract, which will be a great indicator of the new pricing trend in Somers Chase once we learn the sale price.
I do know that the Madison Federal sold privately for $998,000 (#68 Hallocks) a little over a year ago and 11 Mathews, also sold privately in a very distressed situation for under $750,000. While I do not believe that is the new norm for pricing, those sitting in the $800's are facing a whole new pressure as to whether to reduce or remain and wait through a bit of this cycle. 2018 is a little bit of 'the unknown' - we need to get through this year to see how everyone is personally affected by the dramatic tax changes. We may come out of this next year in a stronger position but we may also see those needing to sell who have to take a significant reduction/loss in their sale price.
Looking forward to your questions. I am also happy to update on a monthly basis as we come through this difficult time together.
Last updated 6/20/2018
Rita Chelala, Real Estate Salesperson, Keller Williams:
Web page: https://westchesterluxury.kw.com
Please find below the list of homes sold in the past 3 years starting from the most recent:
|Address||Price||Date||Days On Market|
|24 Hallocks Run||$805,000||6/5/18||125|
|4 Theal Court||$832,000||5/31/18||391|
|11 Mathews LN||$739,000||11/10/17||Private Sale|
|16 Wellington LN||$920,000||9/7/17||Private Sale|
|68 Hallocks Run||$995,000||7/12/17||Private Sale|
|66 Hallocks Run||$870,000||7/11/16||57|
|6 Wellington LN||$905,000||2/2/16||126|
|63 Hallocks Run||$949,000||12/10/15||34|
|5 Wellington LN||$899,000||7/1/15||29|
5 ACTIVE homes are currently on the market:
|Address||Price||Date||Days On Market|
|30 Hallocks Run||$815,000||-||-|
|71 Hallocks Run||$825,000||-||-|
|19 Hallocks Run||$835,000||-||-|
|5 Mathews LN||$899,000||-||-|
|7 Theal Court||$999,900||-||-|
Once the most sought-after community in Somers with bidding wars, Somers Chase homes are now sitting longer on the market with continuing decline in resale price. However, Somers Chase isn't the only luxurious community that is suffering, Country Hollow, the Preserve, and Salem Chase in North Salem have been equally hurting. Country Hollow homes in particular once selling at north of $1.5M, are now going for under a million. Homes in Salem Chase are taking over a year to sell in the low $700,000.
Several factors are behind this trend:
It all started with the 2008 recession when the housing market collapsed after many bullish years (the highest sold price in Somers Chase was at $1,299,000 in 2006) the market has since started to recover. Lower Westchester in general fares better than northern Westchester due to its close vicinity to NYC. While in towns like Scarsdale, Bronxville, and Rye, where houses in the $800-$1M are flying off the shelves, northern Westchester homes in that same price range remain stagnant.
The millennials are entering the housing market in full force but are also leaning towards more affordable neighborhoods more likely in the $500-$700 range. They tend to favor urban lifestyle with shorter commute and easy access to work and entertainment. Big homes and mega mansions are out making ways to smaller and smarter homes.
The relocation of 2 major corporations, IBM and Pepsico, mega tax payers and revenue generators, with no replacement in sight have added to the burden. Historically, we've had a good number of IBM & Pepsico executives seeking Somers Chase for its convenience in proximity to work, but since Somers has lost that competitive edge.
Also, several new luxury rentals developments have been coming up throughout Westchester county and Connecticut, and the would've been potential buyer is now considering the rental option, foregoing property tax and large down payment, but still benefiting from the school district and luxury life style.
Unfortunately, the new tax law limiting property tax deduction to $10K didn't help either, so now homebuyers are facing increase in net after-tax housing costs. Hence, they are now favoring homes with less property tax or moving across the border to CT where houses are cheaper and property taxes are lower. Renting may become relatively more attractive for those on the fence about becoming homeowners. (Case in point is the rental at 2 Kipps Court that recently had a bidding war and was rented at asking price.)
On a positive note, building a nearby supermarket and sidewalks as well as the construction of Boniellos's new Condominiums will most likely make our homes more appealing. Especially, that Boniello's expected selling point will be in the high $600K for the smaller middle units and low $800K for the larger ones, homebuyers may find more value in Somers Chase homes in comparison. Also, I still believe Somers Chase is unique with its amenities and truly offers an unparalleled life style. The pool, tennis and clubhouse still attract many buyers and the community feel is still desirable to families with small children. And so, I remain very hopeful for the near future.
Last updated 6/20/2018