westchester’s real estate market begins to stabilize
/
By Ryan Noel | Published on August 25, 2022
After two years of mind-blowing increases in luxury home sales, the housing market in Westchester seems to be simmering down.
In the world of real estate, most buyers are sellers first and, lucky for them, the market favors the sellers.
According to the Houlihan Lawrence Q2 luxury market report, Westchester home sales are up 12.2%. In Westchester County, the most expensive property sold for $24,150,000 in Bedford. As for the median sale price in Westchester, it dipped 0.9%.
One factor that is still affecting real estate in Westchester County is a lack of inventory, not a lack of demand. When there aren’t as many properties on the market, a decline in sales is inevitable.
Besides, it’s still a sellers’ market, and luxury homeowners are staying put. Deciding not to sell gives them an advantage, and it also allows the topsy-turvy real estate market we witnessed in Westchester during the pandemic to stabilize.
“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.” says Anthony P. Cutugno, Sr. Vice President, Director of Private Brokerage for Houlihan Lawrence.
Cutugno adds, “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.”
With mortgage prices increasing and supply chain issues continuing, most real estate buyers looking for property in Westchester are laying low as the market stabilizes. For the past two years buyers were seeking properties stocked in amenities and space. This quarter, we have seen that urgency dwindle.
“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,” says Cutugno.
Buyers remain optimistic and motivated to purchase homes that are priced and presented to meet the market.