A cooling real estate market in the Lower Hudson Valley is cooling business at local title companies as well.

Title companies investigate the deeds of properties to ensure the titles can pass cleanly from seller to buyer. They also sell insurance to cover buyers when unexpected claims emerge after the purchase.

Median house prices were lower in the three-county area in the second quarter, year over year, and sales data was mixed. Some local title companies say their sales have been affected.

Statewide Abstract Corp. in White Plains has seen the number of deals on its residential side fall 12 percent year to date, President Kenneth Meccia said. Residential real estate makes up three-quarters of Statewide’s business in the tri-state area, with commercial business making up the rest.

Title companies that are less diversified are struggling, Meccia said. He sees more consolidation in the area, and said he is talking with a few businesses he may acquire.

The commercial side is still strong, Meccia said. In fact, Statewide opened its first branch office in Manhattan about six months ago, chiefly to be closer to clients in the city, he said.

Jeffrey McCall, president of McCall Abstract Corp. in New City, said commercial refinancing business is helping his company as well. Business mortgages tend to be written for shorter terms than residential mortgages, and relatively low interest rates are keeping refinancing popular, he said.
Still, his business is down 20 to 25 percent year over year, he said. The residential real estate market is dogged in part by property tax increases that have outstripped growth in home incomes, he said.

“It’s pretty tough times,� McCall said. “You’ve got a tremendous amount of listings out there.�

One problem facing local title companies is competition from banks that write mortgages and are offering title services as well, he said.
Given the big runup in real estate in the region since the late 1990s, it’s not surprising that a soft market feels harder now, said Thomas DeCaro, president of Benchmark Title Agency of White Plains.

“When you’re racing along for that period of time, the slowdown seems more dramatic,� he said. “I don’t think there’s going to be much of a fall market in real estate.�