The amount of local homes that went into contract rose significantly this past month, possibly due to low interest rates prompting buyers to act and that the fact that some sellers started more agressively pricing their homes (at least in comparison to last year’s levels) to sell, hence the value. 

 

Local attorney Rita J.Tino told me,” What I have been seeing over the last months is not only definite mortgage contingencies, but more importantly “appraisal contingencies”.  Everyone is worried that homes are not appraising and that the borrowers will not be able to come up with the monies necessary if the appraisal does not meet the purchase price.  If the appraisal comes in low, then purchasers are trying to re-negotiate, but sellers are fighting back since they feel that they are taking a hit on the lower price points.”

 

But remember that the “buyer’s down payment is at risk if they don’t close”, according to Rye attorney John Gardner. 

 

*Read more on this subject in my recent myrye interview with John last month.

 

First time home buyers are driving the market as another attorney told me last week that he is seeing a shift to more co-ops and condos as opposed to single family sales. Rita Tino suggests first time home buyers talk to their CPA about the first time buyer’s tax credit. 

 

Buyer’s financing continues to be a factor: Sellers are accepting offers based in part on the type of financing the potential buyer is pursuing (i.e. 20-30% down, which bank), as well as price.