VOL. 8 NO. 2 SERVING WESTCHESTER AND THE MID-HUDSON REGION APR /MAY 2009 Local Housing Market Feeling Negative Effects THE HANLEY of Last Fall’s Economic Downturn, Report Says REPORT WHITE PLAINS—Deepening reces­ first quarter of 2009, a decrease of 37 The Price Scenario sion ary conditions in the autumn months percent from the first quarter of 2008. Prices also decreased, accord­ of 2008 markedly reduced real estate Westchester’s single family house mar­ ing to the report. The first quarter me­ activity in the Westchester region. ket was most affected, with a 41 per­ dian sale price of a single family house Plunging equity markets, rising un­ cent decrease. Putnam County clos­ in Westchester was $532,000, a de­ employment, weak corporate earnings ings were down by 31 percent from last crease of $90,500 or nearly 15 percent reports, and pre­ and post­election jit­ year, the study said. from last year. That price level was last ters about economic policy and the un­ The first quarter normally posts the seen in 2003. Reviewing Positive known effects of the various stimulus lowest closed sales volume of the year, The Putnam County median of and bailout plans all combined to dis­ since it follows upon reduced sales ac­ Reactions and Two $411,250 was 20 percent lower than courage prospective homebuyers from tivity during the holiday season and last year’s. The Westchester decrease, Noteworthy Anniversaries entering the real estate market then. winter months. however, was not all a case of across­ By JEFF HANLEY The result of the reduced marketing However, when the data are adjust­ the­board price depreciation. Rather, see page 2 and showing activity at the end of 2008 ed for such seasonality, the first quar­ much of it reflected a severe contrac­ was that far fewer closings were posted ter, 2009 rate of closings was down 31 tion in the volume of high­end sales. in the first quarter of 2009, an industry percent from the fourth quarter of 2008. Houses selling for $1 million or more study recently reported. The 850 Westchester closings were accounted for only 13 percent of all Realtor firms participating in the equivalent to an annual rate of only sales in the first quarter, whereas pri­ Westchester­Putnam Multiple List­ 4,230 sales, the lowest pace recorded or quarters have posted 20 percent or ing Service reported only 850 closed by the Multiple Listing Service since the CO-OP more, the study said. CONDO transactions in Westchester in the 1985­1990 period, the study said. Continued on page 3 CORNER Spano to Review “Westchester 2025” at June 11 Industry Meeting By Jeff Hanley, IMPACT Editor WHITE PLAINS – A new analysis from that highlights the input of Spano and that Westchester 2025 sets out a new Take a Close Look Westchester County on Land Use Poli­ the Westchester County Planning De­ framework for a planning partnership at Those “Claims of cies and their ramifications to the coun­ partment on a series of Land Use stud­ between the county and its 45 munici­ ty will be examined at the June Gener­ ies and positions. palities,” said Ken Nilsen, president of Savings” on Energy Bills! al Membership Meeting of the Building The meeting is entitled “Westchester the BRI. By HERB ROSE and Realty Institute (BRI). 2025 – What It Means to Our Region!” County officials have emphasized, see page 2 BRI officials recently announced that It is scheduled for Thursday, June 11, Nilsen added, that the summary is de­ the meeting will feature Westchester 6:30 p.m., at the Crowne Plaza Hotel in signed to assist Westchester County’s County Executive Andy Spano speak­ White Plains. government and its 45 municipalities ing on Westchester 2025, a summary “County officials have stressed to us Continued on page 3 COUNSEL’S Construction CORNER Compensation Insurance Group Announces a 25 Percent Dividend Real Estate Group Reports a 20 % Dividend By Jeff Hanley, IMPACT Editor YONKERS – New York State Work­ ers’ Compensation Group 458 – the compensation insurance group for the Builders Institute (BI) – recently an­ nounced a 25 percent dividend for the Court Denies Parking Space policy year ending June 29, 2008. The dividend was announced at the to Shareholder, Claiming group’s annual meeting on May 27 at Photo by Myron Marcus the offices of Group Manager Levitt­ Need as an Accommodation Fuirst Associates, Ltd. of Yonkers. It is ADDRESSING KEY ISSUES – “The Challenges to the New York Metro Region!” Under the Fair Housing Act in addition to the 25 percent advance was the topic of the May 14 General Membership Meeting of the Building and By Kenneth J. Finger, discount that group members are eligi­ Realty Institute (BRI). Richard Ravitch, the principal of Ravitch Rice and Co., CARL L. FINGER and DANIEL S. FINGER ble to receive, spokesmen said. LLC and the former chairman of the Metropolitan Transportation Authority see page 5 Group spokesmen added that the (MTA), was the guest speaker. Pictured at the event are, from left to right, Ken Continued on page 3 Nilsen, president, BRI; Ravitch; and Albert Annunziata, executive director, BRI. PAGE 2 — IMPACT — APR/MAY 2009 CO-OP Take a Close Look at Those CONDO CORNER “Claims of Savings” on Energy Bills! can prudent board of directors change for not increasing the ture, the utility is attempting to do for their respective co­ops capacity in these same areas. modify demand and the need By HERB ROSE or condos? Participation in this program for all this investment. New in­ Economy comes only from will result in a building reducing vestment brings rate raises as less usage through fluores­ power usage by as much as 75 well. cent retrofitting and timing, so percent. This means new fix­ Application of DSM retro­ NEW YORK—When gaso­ based—are at a six­year low. that lights are off in daylight tures and replacing lamps with fitting, at present, appears to line is available for $2 a gallon, Future delivery contracts for hours. Deals with ESCOS more efficient lighting and has be focused on White Plains, why would anyone pay $3 a the next few years are also that pay off can only be made the double benefit of updating Harrison and certain streets gallon for the product? low. Recession consumption when the price is indexed to old receptacles, which would in Manhattan. Buildings who When electricity is produced is holding down demand and Con­Ed’s rates. eventually need replacement. have participated are express­ for six cents a kwh, why would the prospect for a 40 percent Yes, our friend Con­Ed is of­ Payback is represented as tak­ ing a very positive reaction to anyone pay 10 cents per kwh? rise in electric costs is a little ten the cheapest provider! ing about six months, but even the upgrades and savings. Recently, there have been far­ fetched. Save by doing the math! a series of aggressive selling Participation in this program activities by ESCOS (energy Other Theories Herb’s Hints: service companies) and their A second argument for will result in a building 1) Install ceiling fans for agents to “sign­up” consumer buying from an ESCO is the air­conditioning comfort and buildings. 40 percent sales tax exemp­ reducing power usage by as economy. A close examination and tion (about one to two percent 2) Turn lights off when leav­ calculation of the resulting of the bill). Delivery costs are much as 75 percent. ing a space! rates often don’t match the ex­ sales tax free, when the prod­ Editor’s Note: Herb Rose is travagant claims of savings. uct (electricity) is bought from Big bargains are to be found a more realistic 12 months a co-op and condo consul- Recent charges by Con­Ed an outside supplier. Sales tax in a somewhat recent, un­ would result in a return of 100 tant. He is also a member have been as low as six cents is paid only on the electricity. derstated Con­ed plan called percent in a year. of the board of directors of per kwh. There is a separate In order to realize this econ­ “Demand Side Management” Greening the planet is rep­ The Cooperative and Con- box on your bill detailing the omy, the ESCO price must nev­ or DSM. Under this program, resented as another benefit, dominium Advisory Council kwh price. In contrast to this, er exceed Con­Ed’s charges. Con­Ed will subsidize retrofit­ since substantially less carbon of Westchester and the Mid- a recent proposal by an agent Aggressive selling being ting all the common area light dioxide is produced by the low­ Hudson Region (CCAC). for an ESCO was offering a done under the “power your fixtures. er usage. Rose can be reached at one­year contract at 10 cents way” heading has shown few An Important Pact Under Con­Ed’s DSM program, at [email protected]. In- per kwh! rewards. Consumers have a deal made with the Pub­ first mention, sounds like “pie formation on the CCAC can You could argue that the paid 21 cents per kwh when lic Service Commission last in the sky,” but the motivation be found at buildingandreal- price will go up. However, nat­ the Con­Ed rate was 14 cents, year, Con­Ed will spend $300 for this program is very prag­ tyinstitute.org. Details are ural gas rates—on whose pric­ fourteen cents when Con­Ed million­plus dollars to reduce matic. Instead of building new, also available by calling the es electric charges are largely charged 11, and so on.