Going North of Westcheser for Second Homes
By L.J. BUTTERFIELD :: January 30, 2006

It's been getting dark early for a while now. The excitement of the holidays is, thankfully, over and it's time to settle into a long winter of work. Sound depressing?

Well, there's always the weekend.

Especially when there's somewhere to escape to that doesn't require too much planning and effort.

After all, the winter months are stressful enough, why not pepper them with a little of that joie de vivre that the summer months bring. A getaway home, perhaps, would do the trick.

Here's another scenario: retirement beckons and you want to buy a vacation home in an area you love. But not just any vacation home. One you plan to move into fulltime when dates with your grandchildren start replacing important meetings on your desktop calendar.

OK, if that doesn't pique your interest, maybe this will. You own your own home, are looking for a way to invest your money and have heard that real estate is the way to go. Not only for the appreciation rate of the market but also for the rental possibilities. You are not alone.

Buying a second home is an attractive investment for many reasons, but home owners in Westchester are looking less and less to second homes in exotic locations and are discovering the benefits of vacation or retirement living just outside our borders.

In fact, many are looking no farther than our surrounding counties for the double benefit of proximity to home and natural beauty. Counties, including Ulster, Orange and Sullivan, that offer skiing, lakes, camping and woodlands within easy commuting distance from Westchester.

"The market that I am seeing is that of prospective buyers in the few hundred-thousand-dollar range wanting something reasonably priced but not so big they couldn't afford the upkeep with the philosophy that they could get enjoyment out if it now and reap a nice return on their investment in the future," said Abbe Distelburger of D.L. Hawkins & Associates, located in Orange County. An area close enough, it could serve as a suburb to New York City.

Sullivan and Ulster, two counties that are too far away for most to commute to New York City but offer wooded and lakefront properties, are really taking off as great alternatives for vacation homes.

"Yes, I am seeing an increase," said Kathy Buchanan, associate broker at Coldwell Banker in Sullivan County, when asked about the rate of second home purchases in her area. "I think a lot of people who had money in the stock market found it a much safer investment.They also have the option to use it for now.

"We have great offers in a five-minute radius of seven lakes," Buchanan continues. "It's always been a very popular place but in the last three or four years it has increased." She has also noticed an "increase of people not going abroad as much," mentioning this as a possible reason for the growth in her market.

"I could see people really settling into this area," agrees Distelburger. Sullivan County is on a reservoir, It's very exclusive."

Ulster County, only an hour away from Westchester, is another attractive second-home market for many reasons. "People looking to get their kids into good schools and wanting to get away from the congestion of the city and experience the 'country' are two good reasons," said Shirley Ferguson, a Realtor for Win Morrison Realty in New Paltz.

Ferguson has spent 18 years in the business and has seen it growing.

"We've got a real estate office on every corner from Route 9W out," she said.

And it's no mystery why.

Ferguson has an endless list of the benefits to owning a home in Ulster and adjacent counties.

"Kingston is really like a little New York City," she said excitedly. "New Paltz is very artsy, we just put the ferry back in Newburgh and the waterfront there has been renovated. In Monticello, they have the Mighty M casino and the Monticello race track.

"The roads are very scenic up there." Ferguson continued. "It used to be a forgotten place, unless you like to fish or walk a lot."

But not anymore. Westchester homeowners are changing that.

"I do have to say this, people from Westchester do come very qualified. They're not lookers so much, they're really looking to buy," said Ferguson.

SECOND HOME IN THE SUBURBS

The consensus among Realtors is that homeowners looking for a second residence want mountain or waterfront property -- most of the time.

New York City is an original in many ways, but one of them is the amount of people it produces who are successful enough to own two properties, one in the city and one in the "country."

Not necessarily for use as a vacation home but as a suburban alternative to their primary residence in the Manhattan. "Orange County is becoming a suburb now of New York City," said Distelburger.

Goshen, for example, which is located only about an hour and a half from the city has a downtown area that is known for its' magnificent architecture, a place where there is currently an influx of second-home buyers who own a first home in Manhattan and have been successful in the art community.

"There are a lot of artsy kids moving up there," said Distelburger. "And, for example, I know a couple that were art dealers who also had a place in the city. It's not that remote of an area."

It's not just Orange County where second homes are being purchased, it's Westchester too.

"There are many people who live in Bronxville that have an apartment in the city. But that's more to have their children in a good school district," said Donna Tierney, managing broker at Prudential in Bronxville.

But don't expect second-home purchases in Westchester by homeowners in Manhattan to become a trend.

"Real estate has proven itself as a good investment but I don't see it translating into making the purchase of a second residence here," said Tierney. "We're not seeing people doing that anymore. We are seeing an increase in the purchase of multi family homes in our area." She added.

As far as being a good investment decision, right now the second-home market remains strong even as the real estate boom of recent years is leveling off. "The market was going up and up and up," said Distelburger. "People were thinking about investing, why not put their money into real estate."

But closer to home, in Westchester, home prices are still high.

"Prices are becoming ridiculous, maybe the market has to adjust. If it bottoms out, the second-home market is the first hurt," said Distelburger.

In fact, the national median home price is projected to increase by 4.6 percent this year, according to the National Association of Realtors (NAR). This can have the effect of cooled-off sales prices. But, said David Lereah, chief economist for the NAR, there is no reason for concern.

"We don't need to break a record every year for the housing market to be good," he said in a statement, "In fact, cooling sales are necessary for the long-term health of this vital sector. (It) will help to bring balance between home buyers and sellers, yet sales will remain historically strong."

And, for now, the market for second homes in nearby counties reflects that.

After all, said Ferguson, "It's beautiful up here. And, of course, the price is right.