Real Estate Weekly
Image default
Deals & Dealmakers

Mixed Results for Luxury Home Sales in 2022 for Markets North of NYC

The luxury real estate market north of NYC ended 2022 with mixed results as luxury sales in Westchester, Putnam and Duchess counties were largely unchanged while Greenwich,  Darien and New Canaan posted  sharp declines, according to the Houlihan Lawrence Luxury Q4 Market Report released today.

According to the report, Westchester (sales $2M and higher) showed a slight uptick in closed sales in 2022, making it the only area north of NYC to exceed  2021 sales.  Westchester performed solidly in the  lower end of the market  (below $5M) and sales in the higher end dipped by nearly 20%. In a rare bright  spot for buyers, inventory is building in Northern Westchester and pended sales are down.

The story in Putnam and Dutchess counties is unchanged from last year.

Pending sales are down significantly, and first quarter sales will likely land in negative territory. “These longer-commute-time markets became the darling of NYC buyers seeking low-density areas during the  height of the Covid boom, when work from home seemed here to stay. Now, pressure from employers to return to the office, lay-offs at technology companies, and smaller Wall Street  bonuses may temper this  once white-hot market,” said  Anthony P. Cutugno, Sr. Vice President, Private Brokerage of Houlihan Lawrence.

Luxury markets in Greenwich (sales $3M and higher) and New Canaan and Darien (sales $2M and higher),  reported closed sales down by double digits.

“At first glance, the logical conclusion is a slowdown in the luxury market. However, the data suggest  strong buyer demand in a sharply supply-constrained market. Homes are selling  faster at closer to list  price at a higher average price per square foot than last year. Persistent inventory shortage keeps demandhigh as the scarcity principal kicks in,” said Cutugno.

Cutugno said the supply issue will not correct itself anytime soon, noting that in the luxury  market rising  interest rates have a greater impact on sellers than buyers. He said many  homeowners who want to sell  are unwilling to give up a low rate mortgage to purchase a  new home at higher rate in a tight market. Consequently, they decide to hold on to their  house and wait for more favorable conditions, fueling the imbalance in the market.

“The market is admittedly complicated. The first half of 2023 will likely see a decline in salesnorth of NYC, though even a sharp drop does not mean the market is collapsing,” said Cutugno. He explained that the  past two years of luxury sales in Westchester are about  equal to the aggregate homes sold in 2016, 2017,  2018, and 2019. “Perhaps 2023 will  recalibrate our expectations of a healthy real estate market as the  shadow of the pandemic recedes,” he added.

2022 MARKETS AT A GLANCE (2022 vs 2021)

Westchester County Luxury Home Sales /$2M and Higher

Homes Sold: Up 3.2%

Median Sale Price: Up 0.6%

Highest Sale Price Q4: $10,250,000 Rye Neck

Putnam and Dutchess County Luxury Home Sales /$1M and Higher

Homes Sold:  Down 2%

Median Sale Price: Down 9.4%

Highest Sale Price Putnam Q4: $1,775,000 Carmel  

Highest Sale Price Dutchess Q4: $4,000,000 Washington

Greenwich Luxury Home Sales /$3M and Higher

Homes Sold: Down 30.4%

Median Sale Price: Up 4.8%

Highest Sale Price Q4: $11,193,132

Darien Luxury Home Sales /$2M and Higher

Homes Sold: Down 24.8%

Median Sale Price: Down 1%

Highest Sale Price Q4: $7,100,000

Rowayton Luxury Home Sales /$2M and Higher

Homes Sold: Down 34.4%

Median Sale Price: Up 16.1%

New Canaan Home Sales /$2M and Higher

Homes Sold: Down 28.7%

Median Sale Price: Up 1.1%

Highest Sale Price Q4: $4,945,000

Related posts

Adelaide Polsinelli Hired to Sell Newly Developed Upper East Side Office Building

REW

Kennedy Funding Closes $3.71 Million Land Loan in Piura, Peru

REW

United Federation of Teachers to relocate Bronx office to Co-op City

REW