The state of the real estate market North of NYC in Westchester, Putnam and Dutchess counties in the first quarter of 2023 remains much the same as it was in Q4 2022. While demand remains high, inventory continues to decline to record lows, and sales, as a result, are down in parallel, according to the Houlihan Lawrence Westchester-Putnam-Dutchess Q1 Market Report.
According to the report, the scarcity of inventory in Westchester County has unit sales pacing to the lowest levels they have been in the last 10+ years. A few areas have experienced lower demand in luxury price points, but most brackets continue to be in high demand.
However, Dutchess County is beginning to exhibit the anticipated post-Covid normalization with inventory in some areas rising while sales continue to
decline. The rise in inventory is not unusual because many parts of the county are largely second home markets that were in extreme demand during the pandemic rush. While there has been a slight slowdown, demand is still considered strong for properly priced properties.
Comparing the first quarter of 2023to the market pre-Covid in 2019 provides an interesting perspective with inventory in Westchester County down 68% and the median year-to-date sale price up 25.6%.Putnam County’s inventory is also down 68%, with the median sale price up a staggering 38% year-to-date. Compared to 2019, Dutchess County’s inventory is down 42% with the median price also up 38%.
“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,” said 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 added.
