A myriad of data points indicate that buyer demand remains strong in luxury markets North of NYC, defying broader trends in luxury real estate, according to the Houlihan Lawrence Q3 Luxury Market Report.
Westchester ($2M and higher) and Putnam/Dutchess counties ($1M and higher) realized respectable gains in year-to-date closed sales. Luxury markets in Connecticut (Greenwich, $3M and higher); Darien, Rowayton, and New Canaan, $2M and higher) posted a decline for the fourth consecutive quarter. Buyer demand is not waning, but the supply of homes for sale is, resulting in fewer closed sales.
The report noted that closed sales are a lagging indicator, and pended sales (expected to close within 2 to 3 months) provide a timelier look at the market. In Southern Westchester, pended sales are slightly higher than the same period last year. However, in Northern Westchester, pended sales declined by one-third, and supply inched lower. Dutchess and Putnam counties are level with last year, with supply declining.
In Greenwich, both inventory and pended sales are down. However, homes are selling faster and at the asking price, pointing to a healthy market that is suffering only from a lack of product. The $10M price range is the exception – supply has nearly doubled compared to last year with no pended sales. Fifteen homes closed at $10M+ in 2021 and in 2020, compared to 8 closed sales so far this year. In Darien, Rowayton, and New Canaan, pended sales climbed by double-digits, and homes are selling more quickly than in the same period last year. There is an appetite for new inventory, underscoring the sustained buoyancy of the luxury market.
“Despite the headlines of a housing downturn, we are fortunate to live in an area that is bucking the trends for now. If you currently have a home for sale that is not generating activity or offers, the price and presentation of your home could be standing in the way of a timely sale. Buyers are motivated, decisive, and knowledgeable. They are quick to say yes to a listing that meets their criteria and swift to discard it if they perceive a listing to be overpriced and visually underwhelming,” said Anthony P. Cutugno, Senior Vice President, Director of Private Brokerage of Houlihan Lawrence.
“Luxury real estate relies on demand from high-net-worth individuals (HNWI). The rapid downturn in the stock market and the threat of wealth erosion is a tangible fear. Continued declines can negatively impact HNWI’s desire for luxury real estate sales. Until then, it’s an opportune time to be a seller North of NYC, he added.
