The once red-hot Covid-driven luxury market North of NYC is now simmering as the pandemic fades from buying decisions. Luxury sales in Westchester (sales $2M and higher), Putnam and Dutchess counties (sales $1M and higher); Greenwich (sales $3M and higher), Darien and New Canaan (sales $2M and higher) posted declines in the first quarter of 2023, according to the Houlihan Lawrence Q1 Luxury Market Report released today.
According to the report, a myriad of after-effects of the pandemic are impacting the real estate market including lack of inventory. So many luxury buyers and sellers accelerated their plans during Covid that the current pool of buyers and sellers is understandably smaller than during Covid. Rising interest rates are also a factor. Those who want to sell are holding onto their below 5% interest rate mortgage while waiting for a more favorable interest rate environment and new inventory from which to choose when they make their next purchase.
“Nonetheless, there are buyers in the luxury market. Well-priced, well-presented listings are selling. Persistent supply chain issues have increased demand for move-in condition, and aptly priced, updated luxury offerings are often rewarded with multiple offers at the lower end of the luxury market,” said Anthony P. Cutugno, Sr. Vice President, Private Brokerage for Houlihan Lawrence. “Conversely, ambitiously priced, poorly presented listings are overlooked. Concerns of overpaying are on every buyer’s radar as the fear of a longer, deeper recession looms on the horizon as a result of the banking crisis,” he added.
However, Cutugno said North of N YC remains a resilient market and supply/demand underscores this outlook. He said the luxury market in Westchester still favors sellers, while Putnam and Dutchess counties shows signs of softening after skyrocketing in popularity during the height of Covid.
Looking ahead, Cutugno said, “Luxury buyers in Greenwich eagerly await new inventory, and sellers still have the upper hand. Inventory is building in the $10M+ price range. However, Q1 closed and pended sales indicate that 2023 should be able to match $10M+ sales achieved in 2022, even as, or perhaps because of, the uptick in supply.”
