Lack of Inventory Continues to Impact the Market
RYE BROOK, NY (July 18, 2022) — After two years of eye-popping increases in luxury home sales, the market appears to be stabilizing with luxury home sales in New York and Connecticut posting mixed results in the second quarter, according to the Houlihan Lawrence Q2 Luxury Market Report released today.
Homes sold in Westchester ($2M and higher) rose 12.2 % in the second quarter while the Putnam-Dutchess market ($1M and higher) registered robust gains of 51.6 %. The highest priced luxury home sold in Westchester in Q2 was $24,150,000 in Bedford. For Putnam the highest home sale was $5,720,000 in Haldane while in Dutchess it was $5,600,000 in Clinton.
In Connecticut, the Greenwich market ($3M and higher) showed a sales decline of 34.5%. Greenwich saw the highest price sold for a luxury home at $17,616,666. Darien and New Canaan ($2M and higher) posted declines of 48.3% and 44.1%, respectively. The highest price home sold in Darien was $6,150,000. The top selling price in New Canaan was $7,100,000. The Rowayton market ($2M and higher) experienced a 36.4% decline in luxury sales.
The median sale price in Westchester was down 0.9% while the median sale price in the Putnam-Dutchess market was down 9.1%. In Greenwich, the median sale price was up a slight 3%, while Darien and New Canaan showed modest declines of 0.6% and 1.1%, respectively. The median sale price in Rowayton was down 3.7%.
According to the report, the pace of increases in New York is slowing, and the declines in Connecticut are likely driven by a lack of inventory, not a lack of demand. The urgent need for more space and amenities in less dense areas that fueled our booming market the past two years has eased. Buyers remain motivated to purchase homes that are priced and presented to meet the market.
The lack of inventory continues to impact the market north of NYC. As supply declines, so too do pended sales, which are those scheduled to close within 60 to 90 days and ultimately closed sales. Most buyers are sellers first, and the market is in favor of sellers. However, a confluence of events has convinced many luxury homeowners to stay put.
“Rising mortgage rates impact the decision to stay or move. The luxury buyer has the resources to absorb higher payments, however many would-be buyers who recently refinanced or purchased at a 3% mortgage are reluctant to trade their existing home and assume a significantly higher mortgage on a new purchase. Should their desire for a new home be stronger than practical implications, many don’t want to compete in such a supply-constrained market,” said Anthony P. Cutugno, Sr. Vice President, Director of Private Brokerage for Houlihan Lawrence.
Cutugno said the buyer’s inertia mounts when they consider the hurdles to overcome once they purchase a new home. “Most new buyers want to put their personal mark on a new home, but material delays, supply chain issues and labor shortages keep homeowners out of the market,” he noted, adding, “Low supply translates into competition, and sellers still have the upper hand. However, a sense of discipline has returned to the market as buyers contend with rising interest rates, stock market volatility and record high inflation.”
Q2 2022 MARKETS AT A GLANCE (Q2 2022 vs Q2 2021)
Westchester County Luxury Home Sales /$2M and Higher
Homes Sold: Up 12.2%
Median Sale Price: Down 0.9%
Highest Sale Price: $24,150,000 Bedford
Putnam and Dutchess County Luxury Home Sales /$1M and Higher
Homes Sold: Up 51.6%
Median Sale Price: Down 9.1%
Highest Sale Price Putnam: $5,720,000 Haldane
Highest Sale Price Dutchess: $5,600,000 Clinton
Greenwich Luxury Home Sales /$3M and Higher
Homes Sold: Down 34.5%
Median Sale Price: Up 3.0%
Highest Sale Price: $17,616,666
Darien Luxury Home Sales /$2M and Higher
Homes Sold: Down 48.3%
Median Sale Price: Down 0.6%
Highest Sale Price: $6,150,000
Rowayton Luxury Home Sales /$2M and Higher
Homes Sold: Down 36.4%
Median Sale Price: Down 3.7%
New Canaan Home Sales /$2M and Higher
Homes Sold: Down 44.1%
Median Sale Price: Down 1.1%
Highest Sale Price: $7,100,000
About Houlihan Lawrence
Houlihan Lawrence is the leading real estate brokerage serving New York City’s northern suburbs. Founded in Bronxville, New York, in 1888, the company is deeply committed to technological innovation and the finest client service. The company has 30 offices and 1,450+ agents serving Westchester, Putnam, Dutchess, Columbia, Ulster and Orange counties in New York and Fairfield County in Connecticut. For more information visit: http://www.houlihanlawrence.com/ | TWITTER: @HoulihanRE | INSTAGRAM: @houlihanlawrence
Q2 Sales Show Mixed Results; Lack of Inventory Impacts Market
After two years of eye-popping increases in luxury home sales, the market appears to be stabilizing with luxury home sales in New York and Connecticut posting mixed results in the second quarter, according to the Houlihan Lawrence Q2 Luxury Market Report.
Homes sold in Westchester ($2M and higher) rose 12.2 % in the second quarter while the Putnam-Dutchess market ($1M and higher) registered robust gains of 51.6 %. The highest priced luxury home sold in Westchester in Q2 was $24,150,000 in Bedford. For Putnam the highest home sale was $5,720,000 in Haldane while in Dutchess it was $5,600,000 in Clinton.
In Connecticut, the Greenwich market ($3M and higher) showed a sales decline of 34.5%. Greenwich saw the highest price sold for a luxury home at $17,616,666. Darien and New Canaan ($2M and higher) posted declines of 48.3% and 44.1%, respectively. The highest price home sold in Darien was $6,150,000. The top selling price in New Canaan was $7,100,000. The Rowayton market ($2M and higher) experienced a 36.4% decline in luxury sales.
The median sale price in Westchester was down 0.9% while the median sale price in the Putnam-Dutchess market was down 9.1%. In Greenwich, the median sale price was up a slight 3%, while Darien and New Canaan showed modest declines of 0.6% and 1.1%, respectively. The median sale price in Rowayton was down 3.7%.
According to the report, the pace of increases in New York is slowing, and the declines in Connecticut are likely driven by a lack of inventory, not a lack of demand. The urgent need for more space and amenities in less dense areas that fueled our booming market the past two years has eased. Buyers remain motivated to purchase homes that are priced and presented to meet the market.
The lack of inventory continues to impact the market north of NYC. As supply declines, so too do pended sales, which are those scheduled to close within 60 to 90 days and ultimately closed sales. Most buyers are sellers first, and the market is in favor of sellers. However, a confluence of events has convinced many luxury homeowners to stay put.
“Rising mortgage rates impact the decision to stay or move. The luxury buyer has the resources to absorb higher payments, however many would-be buyers who recently refinanced or purchased at a 3% mortgage are reluctant to trade their existing home and assume a significantly higher mortgage on a new purchase. Should their desire for a new home be stronger than practical implications, many don’t want to compete in such a supply-constrained market,” said Anthony P. Cutugno, Sr. Vice President, Director of Private Brokerage for Houlihan Lawrence.
Cutugno said the buyer’s inertia mounts when they consider the hurdles to overcome once they purchase a new home. “Most new buyers want to put their personal mark on a new home, but material delays, supply chain issues and labor shortages keep homeowners out of the market,” he noted, adding, “Low supply translates into competition, and sellers still have the upper hand. However, a sense of discipline has returned to the market as buyers contend with rising interest rates, stock market volatility and record high inflation.”
Q2 2022 MARKETS AT A GLANCE (Q2 2022 vs Q2 2021)
Westchester County Luxury Home Sales /$2M and Higher
Homes Sold: Up 12.2%
Median Sale Price: Down 0.9%
Highest Sale Price: $24,150,000 Bedford
Putnam and Dutchess County Luxury Home Sales /$1M and Higher
Homes Sold: Up 51.6%
Median Sale Price: Down 9.1%
Highest Sale Price Putnam: $5,720,000 Haldane
Highest Sale Price Dutchess: $5,600,000 Clinton
Greenwich Luxury Home Sales /$3M and Higher
Homes Sold: Down 34.5%
Median Sale Price: Up 3.0%
Highest Sale Price: $17,616,666
Darien Luxury Home Sales /$2M and Higher
Homes Sold: Down 48.3%
Median Sale Price: Down 0.6%
Highest Sale Price: $6,150,000
Rowayton Luxury Home Sales /$2M and Higher
Homes Sold: Down 36.4%
Median Sale Price: Down 3.7%
New Canaan Home Sales /$2M and Higher
Homes Sold: Down 44.1%
Median Sale Price: Down 1.1%
Highest Sale Price: $7,100,000
About Houlihan Lawrence
Houlihan Lawrence is the leading real estate brokerage serving New York City’s northern suburbs. Founded in Bronxville, New York, in 1888, the company is deeply committed to technological innovation and the finest client service. The company has 30 offices and 1,450+ agents serving Westchester, Putnam, Dutchess, Columbia, Ulster and Orange counties in New York and Fairfield County in Connecticut. For more information visit: http://www.houlihanlawrence.com/ | TWITTER: @HoulihanRE | INSTAGRAM: @houlihanlawrence
