The Antares Report: Westchester County Real Estate Market Update; Luxury Market Booms by 146% in Elite Westchester Towns in 2004 vs. 2003

Business Wire, June 22, 2004

GREENWICH, Conn. -- Once again, Westchester County has ascended to the top of the list of most appealing places to purchase and invest in real estate. The region's surge in property values over the course of the past two years offers investors an unmatched guarantee of return on investment that cannot be matched anywhere else.

This issue of The Antares Report examines a "Peer Group" of Westchester towns deemed elite as measured by their school districts' traditional academic prowess and the number of residential real estate deals, which have closed above $1.3 million over the last two years. The Peer Group includes: Armonk, Briarcliff, Bronxville, Chappaqua, Harrison, Rye, and Scarsdale.

*2004 vs. 2003 report: The results are stunning. "Velocity, Absorption and Pricing," real estate lingo to measure the market's health - are at all time highs. In the first six months of 2004 compared to the first six months of 2003, the number of homes sold above $1.3 million in the Peer Group increased by 146%, with 143 closings in 2003 vs. 352 closings and pendings in 2004.

*Explosion of activity: The increased transactions in the luxury price range is attributable to the following factors:

1.Improving job market and incomes from the expanding economy.

2.A scarcity of land for new development in the Peer Group, and in some cases, such as Armonk, an outright moratorium on new building permits. Although the moratorium is proposed and fully supported by town, but it is not, however, a done deal. Hence, while the economy improves and demand is increasing, supply is either decreasing, or being halted altogether, in these elite towns.

3.The attractiveness of top school districts, whose historically high track records of excellent college placement, low student/teacher ratios, and high standardized test scores make them among the state's best.

Most importantly, the above factors increase the likelihood that an investment in these elite towns is both safe and has high appreciation potential.

*Higher Number of Resales: In addition to a record number of closings in the luxury market, the prices being paid per square foot are also at record levels. One interesting outcome of this record absorption, velocity, and pricing is the number of resales being put on the market. For example, Armonk had approximately $70 million of inventory (new construction and resales) being offered for sale in January of 2004. The total listings in June 2004 approximate $150 million. While it is to be expected that the "Spring/Summer" market would always be much larger than the January market, Antares finds anecdotal evidence of a large number of "empty nesters" selling their homes to buyers with young families in the Peer Group.

*Student Growth and Solid Prices: A likely municipal impact of the activity in the resale market will be pressure on school districts to accommodate the growth in the student population. The new construction market is not the only cause of the rise in student population. Instead, we find student growth is occurring because empty nesters are selling their homes to families looking to put their children into elite school districts, which in turn shifts more pressure to the luxury real estate market, thereby firming up prices in these elite towns even more.

*Be Selective: In such an active market, Antares is counseling clients who have decided they want to live in one of these elite towns to be selective in their search. Buyers should scrutinize the architectural and engineering quality of the homes they are considering, including the quality of kitchens, baths, millwork, windows, HVAC systems, electrical systems, and so on. In a market with so much demand, prospective buyers should be certain that what they buy is truly the best product in their price range. Using the historical NYC pre-war coop market as a guide, buyers should focus on architectural and structural quality because, over decades, these factors retain value and appreciate faster.

*Ensure Quality: Once you have answered the "location question" by choosing one of Westchester's elite towns, the next question should be one of "quality, quality, and quality." Engage engineers and architects to augment your brokerage professional, if needed, to help find the homes with the most architectural and structural integrity. These homes will afford you years of pleasure and rank among your best investments.

About Antares

Antares is a vertically integrated real estate firm that develops, builds, and owns a broad range of ultra luxury assets principally in the Greenwich, CT, and Westchester County areas. Flagship residential assets of the firm are the 27 home gated community in Armonk, NY, and the elite Antares Estate, a $25 million mansion around Lake Carrington off of Round Hill Road in Greenwich, CT. Commercial assets include Pickwick Plaza, a 238,000 square foot office building widely regarded as the United States' finest suburban office complex, and the Delamar Hotel, Greenwich's elite boutique waterfront hotel. Antares also operates a leading residential and commercial brokerage operation in its preferred geographies and a full service construction company. The firm was founded in 1996 and has approximately 100 employees.