Luxury markets north of New York City posted record gains in 2021 for the second consecutive year, with double-digit increases in Westchester County (sales $2M and higher); Putnam & Dutchess Counties (sales $1M and higher); Greenwich, CT (sales $3M and higher); and Darien, Rowayton and New Canaan (sales $2M and higher), according to the Houlihan Lawrence Q4 Luxury Market Report released recently.
Westchester saw luxury home sales soar by 41.5% for the year, while luxury homes sold in Putnam and Dutchess rose 25.6%. The highest sale price for the year in Westchester was $11.5 million in Byram Hills. Luxury home sales rose 38.2 % in Greenwich; 33% in Darien; 100% in Roywayton and 80 % in New Canaan. Greenwich reported the highest sale price of the markets surveyed — $50 million.
“Gains achieved in 2021 continue to reflect our rapidly changing world. Demand for luxury homes that serve a myriad of needs has remained strong. Luxury buyers want flexible spaces to accommodate working and schooling from home, plus amenities including a pool, tennis court, and home gym. The Omicron surge is a reminder that one’s home is also a refuge during uncertain times,” said Anthony P. Cutugno, Sr. Vice President, Director of Private Brokerage for Houlihan Lawrence.
Cutugno said fissures in the market began to emerge in the fourth quarter. “As the supply of luxury homes declined to historic lows, closed sales cooled down – every luxury market registered double-digit declines this quarter. Homebuyers are not retreating, but their desire and ability to purchase a new home are often thwarted by shrinking supply. Looking forward, pending sales are down at year’s end; robust gains of 2021 will likely taper off in 2022,” he said adding, “While our supply-constrained market is cautionary and perhaps temporary, it should not overlook the tremendous gains achieved in 2021.”
Here are highlights of the report:
- The luxury market north of New York City outperformed the broader market by a sizable margin. For example, single-family home sales in Westchester County increased 11%; luxury home sales rose by 40%.
- 2021 was a seller’s market. Homes sold faster. Multiple bidding was not uncommon due to more competition for fewer homes. Most luxury homes sold within 5% of their list price, and median sale price increased in nearly every market.
- The higher end of the luxury market achieved notable gains, in contrast to last year, which posted a nominal increase. In Westchester and Greenwich, the $5 million to $9.99 million price range nearly doubled in sales.
- In Darien, seven homes closed from $5 million to $9.99 million vs. one sale in 2020.
- Westchester posted four closed sales over $10 million vs. zero the year before. Two of the four sales are Sound Shore waterfront properties.
Looking ahead to 2022, Cutugno observed, “During the past two years, the real estate buzz has been all about buyers – their sheer number and why and where they are moving. This year, the conversation focuses more on supply. The market is hungry for new inventory, and sellers hold the key to the strength of the luxury real estate market in 2022.
2021 MARKETS AT A GLANCE
Westchester County Luxury Home Sales /$2M and Higher
Homes Sold: Up 41.1%
Median Sale Price: Up 6.4%
Highest Sale Price: $11,500,000 Byram Hills
Putnam and Dutchess County Luxury Home Sales /$1M and Higher
Homes Sold: Up 25.6%
Median Sale Price: Up 4.9%
Highest Sale Price Putnam: $3,400,000 Haldane
Highest Sale Price Dutchess: $3,100,000 Rhinebeck
Greenwich Luxury Home Sales /$3M and Higher
Homes Sold: Up 39.2%
Median Sale Price: Up 8.9%
Highest Sale Price: $50,000,000
Darien Luxury Home Sales /$2M and Higher
Homes Sold: Up 33%
Median Sale Price: Up 9.2%
Highest Sale Price: $8,275,000
New Canaan Home Sales /$2M and Higher
Homes Sold: Up 80%
Median Sale Price: Down 0.2%
Highest Sale Price: $5,235,000