The real estate market in Westchester, Putnam, and Dutchess faced heightened challenges during the second quarter of 2023, characterized by low inventory levels and the impact of an abrupt increase in mortgage interest rates, according to the Houlihan Lawrence Westchester-Putnam-Dutchess Q2 Market Report.
The report noted that a significant majority of homeowners with mortgages are currently paying below the historical average rate of 6.7%, the highest observed in 20 years. This has thwarted the trade up, trade down activity in all our markets and further exacerbated the already low levels of properties for sale. The limited inventory of homes, including luxury properties, has intensified competition among buyers and led to upward pressure on prices in most areas.
“This environment has resulted in a beneficial situation for homeowners who decide to sell, and with mortgage rates currently stabilizing, they are becoming more inclined to make a move. At all price points, sellers are often able to realize top dollar for their properties, when properly priced, and achieve significant returns on their real estate investments,” said Liz Nunan, President and CEO of Houlihan Lawrence.
“Houlihan Lawrence is fortunate to operate within the thriving markets north of New York City. The region offers exceptional housing choices, making it accessible to a broad range of buyers. The cultural richness, abundance of parks, proximity to beaches, and recreational opportunities in our counties is unparalleled. As a result, our strong demand for housing over the decades has remained constant, with a few exceptions,” said Nunan.
Overall, the Westchester-Putnam-Dutchess market showed double-digit declines in home sales in all submarkets. Median sale prices were lower as well in most submarkets.
