Homes in Poughkeepsie. Adobe Stock / CE Photography
Hudson Valley realtors weigh in on Q1 buying and selling trends as well as what to expect for home sellers and buyers through 2023.
During the first quarter of the new year, the real estate market north of New York City remained “much the same” as it was at the tail end of 2022. Though demand remains high, “inventory continues to decline to record lows,” according to the Houlihan Lawrence Westchester-Putnam-Dutchess Q1 market report, “and sales, as a result, are down in parallel.” Consequently, it remains a sellers’ market.
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In Westchester, lack of inventory means unit sales are on pace for a 10-year low. Although demand is waning slightly at luxury price points, most brackets in the county remain in high demand.
Prospective buyers are more likely to find success up in Dutchess County; the area is “beginning to exhibit the anticipated post-COVID normalization” with inventory on the rise and sales in decline. Despite the “slight slowdown,” the market is still attractive for homeowners looking to sell at a justified price.
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The market’s present idiosyncrasies are made even more stark when compared to statistics from before the pandemic. In Westchester, inventory is down 68 percent compared to 2019, and the median year-to-date sale price is up 25.6 percent. In Putnam County, inventory is also down 68 percent with the median sale price up a “staggering” 38 percent year-to-date. The story is slightly less bleak in Dutchess County, where inventory is down only 42 percent, with the median price also up 38 percent.
“Interest rate hikes and the recent threats to the banking industry continue to impact the industry, with some buyers more hesitant to trade their record low interest rates for less favorable ones, and overall, a sensitivity to pricing,” says Liz Nunan, President and CEO of Houlihan Lawrence. “The inventory quandary, however, has continued to drive a predominantly sellers’ market forward. Compared to other parts of the country, the marketplace north of NYC remains strong,” she concludes.
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