Will Rising Interest Rates and a Falling Stock Market Cool Home Sales?

Will rising interest rates cool the hot real estate market? This spring in Scarsdale, scant home inventory fueled the market and home prices went through the roof, with some selling at more than a million dollars above their assessed value.

However, now that interest rates on home mortgages have risen above 5%, analysts are predicting a tempering of home sales. A recent article in Forbes Magazine says, “In terms of purchasing a property, every 1% of interest rate increase on a buyer’s loan reduces their purchasing power by approximately 12%," … "In other words, if buyers do not have a hefty savings or an income that is beyond what was initially allocated, then the overall budget to purchase a home stands to decrease substantially.”

So though there is still a shortage of homes on the market, sellers may have to tone down their expectations for pricing, as mortgage interest rates are going to take a bigger bite out of buyer’s pockets. In addition to the rise in interest rates, recent declines in the stock market have also decreased home seekers buying power, so the market could be in for an adjustment.

Sales
138 Fox Meadow Road
Majestic Colonial in Fox Meadow. Built by Award winning KOSL Building Group, Scarsdale's Premier Builder. With the ultimate layout with six spacious bedrooms, six bathrooms, one powder room, over 6200 square feet, level backyard and room for pool. Having many architectural details throughout with dramatically large windows and the finest materials. Pella windows, cedar shingle roof, copper gutters and leaders, stone and cedar siding on all sides. Impressive 10 foot ceilings on the 1st floor and 9 foot ceiling on the 2nd floor and basement. State of the art eat-in-kitchen, top of the line appliances and breakfast area, adjoining the large family room with fireplace. Convenient laundry room on the 2nd floor. Convenient dumbwaiter from the garage to the kitchen. Heated 3 car garage. Short walk to train station, shops and school
Sale Price: $3,229,000
Assessed Value: $2,842,500
Real Estate Taxes: $71,051

24 Stonehouse Road
The ultimate in suburban living within just minutes from urban conveniences. This young split level home spanning 4000 square feet was completely rebuilt in 2005 and offers a spacious open layout with plenty of spaces to work, relax and enjoy the outdoors. The interior space offers a gourmet kitchen with a fleet of upscale appliances that will test your culinary schools while enjoying gatherings in the adjacent family room with sliding doors to the outdoors. The chic formal dining room welcomes gracious dinner parties and the living room has a stately fireplace and impressive wall of windows that fill the space with warmth and golden light. The guest quarters offer 5 potential bedrooms and 3 full elegant bathrooms and the walkout lower level makes a great playroom or area for guests with a full bath. This central Scarsdale location is only 2 blocks from Scarsdale village, train and parkways.
Sale Price: $2,550,000
Assessed Value: $1,500,000
Real Estate Taxes: $37,834

15 Vernon Road
Stately stone and clapboard Colonial with a slate roof and copper gutters on 2/3 of a level acre boasting impressive curb appeal and exceptionally grand living and entertaining spaces, with room for a pool, in the award-winning Scarsdale school district. A lovely foyer welcomes you to this nearly 6000 square foot south-facing home featuring an oversized, sun-filled family room with custom-made built-in entertainment center including wet bar and a 3-sided fireplace opening up to the adjacent fabulous gathering/playroom with sliding glass door to the expansive deck, formal living room with wood-burning fireplace, formal dining room with bay window, eat-in-kitchen, powder room, and mudroom connecting to the two-car garage. The second level showcases a primary bedroom suite with two full bathrooms, a spacious dressing area, multiple outfitted walk-in closets and stunning property views, two spacious family bedrooms share a Jack-and-Jill bathroom, a third family bedroom with en-suite bathroom, and a fourth family bedroom/den with built in bookshelves, window seat and en-suite bathroom complete this level. The large lower level contains a bright recreation room with fireplace, 1/2 bath, separate large gym/room with en-suite full bath, laundry area and plenty of storage space. Don't miss the third level versatile storage space. Conveniently located on a tranquil street in the heart of Scarsdale, offering a bus to all schools and a 32-minute express train to New York City.
Sale Price: $2,475,000
Assessed Value: $2,251,300
Real Estate Taxes: $57,134

24 Aspen Road
Impeccably renovated home featuring a flexible indoor-outdoor layout, fantastic natural light and a perfect Scarsdale location. The 3500+ square foot showplace features a living room with a fireplace, formal dining room, and a den with a bar and coffered ceilings. The large eat-in chef's kitchen offers upscale appliances. Outside, the patio is surrounded by lush professional landscaping and a new hot tub. Three beds, including the primary suite, on the main level, plus two more above. The lower level features a spacious rec room, new laundry/mudroom with great storage, plus a windowed office perfect for working from home. Extensive updates include a new roof, gutters, shingles, stone facade, Savant smart home system, new doors, video security and upgraded electrical. Conveniently located on a tranquil street just inches from Aspen Park, Saxon Park, Heathcote Five Corners and buses to the Scarsdale train station or Quaker Ridge elementary, middle and high school.
Sale Price: $2,430,000
Assessed Value: $1,375,000
Real Estate Taxes: $34,895

15 Foxhall Place
Chic and sophisticated Cape Cod Center Hall-style Colonial located in the heart of Heathcote! Beautifully situated on a very private and tranquil tree-lined street, located steps to Heathcote Elementary and Scarsdale Middle School, shops, parks, Scarsdale pool, Boulder Brook Horse stables and tennis. Formal entry foyer leads to a beautiful open, bright expansive living room with wood burning fireplace, formal dining room, family room with dramatic vaulted ceilings and an additional wood burning fireplace that make for a cozy space to watch your favorite TV series. Entertain in your incredible chef’s kitchen featuring a six-burner Thermador range, stainless steel refrigerator, KitchenAid dishwasher, custom cabinets, center island, granite countertops, a home office, children’s study and powder room complete the first floor. The second floor features a primary suite with en-suite full bath, glass enclosed walk-in shower, tremendous closet space with (one) walk-in featuring custom drawers. There are three additional bedrooms with (one) hall bath. The fourth bedroom also has an en-suite bath totaling three full baths on the second floor! The oversized lower level is the perfect space for a playroom, home gym, home theater or game room. Have fun entertaining with the custom “pub-like” bar! Laundry room and extra storage complete the lower level. The rear yard has a stunning bluestone patio that affords room for a large dining table with multiple seating areas, private lush grounds with perennial flowering gardens makes for the most fabulous space to entertain family and friends!
Sale Price: $1,925,000
Assessed Value: $1,200,000
Real Estate Taxes: $29,236

289 Boulevard
Very private and beautifully styled Contemporary home, tucked on a quiet 1/3 acre in the heart of Edgewood. With a lovely setting for entertaining, this multi-level, 4 bed home has a formal living room and dining room, 2 full baths/ 2 half baths, a modern kitchen with a spacious family room and easy access to rear patio and deck. Three bedrooms are located on the second level and a fourth bedroom/den with a half bath ensuite is located on the lower level, ideal for au pair or guests. Amenities include over 2500 square feet of finished space, gas heat, central air, and an attached 2-car garage with room for additional cars in the driveway. This fabulous home is just two blocks from popular Davis Park and is an easy walk to Edgewood elementary school. Free bus to both Scarsdale Middle School and Scarsdale High School. Commuter bus to Scarsdale Village provides easy access to restaurants, shopping and train to NYC train. 35-min commute to Grand Central.
Sale Price: $1,465,000
Assessed Value: $1,125,000
Real Estate Taxes: $27,903

166 Lyons Road
Welcoming center hall colonial located in desirable Scarsdale neighborhood! Charm abounds this sun-filled and much loved home. Follow the glistening hardwood floors throughout the entry level into each inviting space. The large living room with wood burning fireplace is perfect for a cozy night in while the open concept family room and the renovated eat-in kitchen with granite countertops, stainless steel appliances and Thermador double oven is the center of all gatherings. French doors lead to the formal dining room. Upstairs you'll find a cheerful owners' suite with walk-in closet and ensuite bath plus 3 additional bedrooms, a full hall bath. This home was expanded with a two story addition in 2008 to create the ideal living space and a new garage was also rebuilt. Short walk to Edgewood Elementary School, parks, commuter bus and Scarsdale Village train and shopping.
Sale Price: $1,250,000
Assessed Value: $825,000
Real Estate Taxes: $20,808

Featured Listings

5 Copper Beech Lane
Scarsdale, NY
Welcome to 5 Copper Beech Lane, a beautiful, young brick Colonial set on a level .57 acre on a tranquil cul-de-sac in the Quaker Ridge section of Scarsdale! This elegant home features a grand two-story foyer with marble floor, with nine foot ceilings on the first floor. The chef's kitchen has high-end stainless steel appliances, center island, and a light and bright dining area with sliding doors to the park-like backyard, with potential room for a pool. From the kitchen, step down to the huge family room with stone fireplace and additional access to the yard. The first floor also features an expansive formal living room, formal dining room, butler's pantry with desk, an office/den, powder room, laundry and access to the garage and private guest suite with bath. The second floor boasts a large primary suite with two walk-in closets, and ensuite marble bath with skylight, a bedroom with ensuite bath, two additional bedrooms and a hall bath. The full basement is finished with playroom, tons of storage and full bath. A perfect house to call home!
Learn more here.
Listing Price: $2,699,000

46 Webster Road
Scarsdale PO/Eastchester, NY
This charming two-family Colonial is conveniently located in the heart of Eastchester, just steps away from shopping, entertainment, supermarkets, fine dining, Greenvale Elementary and public transportation. Both units boast hardwood floors throughout. A spacious living room with wood-burning fireplace, a 12 foot x 8 foot bedroom/sunroom/den adjacent to the living room, open flow kitchen and dining area, a sizable bedroom, full bath and door to the private backyard/patio complete the first level. Second floor offers a spacious bedroom and living room, full bath and a very stylish kitchen. Laundry is located in the unfinished basement, and has a new washer. Perfect for the extended family or as an income-producing property. Enjoy Cooper Field playground just one block away and your resident discount at Lake Isle Town Club with its golf, tennis and multiple pools! This home has so much to offer, and is worth the visit!
Learn more here.
Listing Price: $699,000