Sales of luxury homes $2 million and higher in Q1 registered double- and triple-digit gains compared to Q1 2020.
Robust buyer demand during the typically slow holiday period of late fall/early winter yielded the strongest first quarter of closed sales in a decade, according to the Houlihan Lawrence Luxury Market Report released today.
“One year ago, when the country was in a COVID-19 lockdown, it was hard to imagine that residential real estate would experience a V-shaped recovery fueled by seismic shifts in consumer behavior,” said Anthony P. Cutugno, Sr. Vice President, Director of Private Brokerage.
“Luxury real estate north of NYC is the beneficiary of these well-documented changes. A substantially larger buyer pool coupled with declining inventory has generated a consistent rise in luxury sales since last summer.”
With so many buyers competing for a limited number of luxury homes, well-priced listings are being quickly absorbed, many with multiple offers, especially in the lower end of the market.
“It is safe to assume that listings sitting on the market are being overlooked because buyers reject the price. Pricing matters, even in a supply-constrained environment. When the price is adjusted to align with market values, buyers respond positively,” said Cutugno.
In Westchester County, luxury sales ($2M and higher) skyrocketed this quarter. Interestingly, the ultra-luxury segment ($5M and higher) is the only price bracket to have more inventory post-COVID than pre-COVID. With a wide selection of homes to choose from, this echelon of buyers is motivated by desire, not need, and tend to be highly selective about their purchase, unaffected by current market dynamics. Consequently, days on market are often higher than homes trading quickly in the lower end of the luxury market.
Putnam and Dutchess Counties’ luxury properties ($1M and higher) are increasingly on the radar of NYC buyers who are gravitating to the Hudson Valley for its rural charm, pastoral beauty, and relative value. This remains a second home purchase for many buyers, while other luxury buyers are putting down roots with their primary home purchase.
In Greenwich ($3M and higher), closed and pended sales have increased at every price point. Darien, New Canaan, and Rowayton posted gains up to $5M price point.
“The question on everyone’s mind is: How long will this last? Pending sales are up, showing activity is strong and days on market are down, pointing to a solid market through the summer. As we move toward long-awaited herd immunity, we are closely monitoring what changes are here to stay and those that will return to pre-pandemic norms,” Cutugno concluded.
MARKETS AT A GLANCE
Westchester County Luxury Home Sales /$2M and Higher
Homes Sold: Up 82.2%
Median Sale Price: Down 4.4%
Highest Sale Price: $7,150,000 Scarsdale
Putnam and Dutchess County Luxury Home Sales /$1M and Higher
Homes Sold: Up 207.7%
Median Sale Price: Up 33.6%
Highest Sale Price Putnam: $2,125,00 Garrison
Highest Sale Price Dutchess: $7,000,000 Rhinebeck
Greenwich Luxury Home Sales /$3M and Higher
Homes Sold: Up 159.3%
Median Sale Price: Up 8.9%
Highest Sale Price: $45,000,000
Darien Luxury Home Sales /$2M and Higher
Homes Sold: Up 62.5%
Median Sale Price: Down 0.3%
Highest Sale Price: $4,650,000
New Canaan Luxury Home Sales /$2M and Higher
Homes Sold: Up 233.3%
Median Sale Price: Down 17.5%
Highest Sale Price: $4,590,000