Sales of luxury homes in Westchester County ($2M and higher), Putnam and Dutchess Counties ($1M and higher), Greenwich ($3M and higher), Darien and New Canaan ($2M and higher) posted gains in the third quarter and year-to-date, with nearly every price range realizing an increase, according to the Houlihan Lawrence Q3 Luxury Market Report released today.
According to the report, shifts in buyer attitudes are harder to quantify but equally important to the health and longevity of this robust market. Price range and level of competition influence buyers’ mindset. The lower end of the luxury market ($2M to $2.99M) in Westchester is hyper-competitive, thanks to extremely tight inventory levels. Fewer homes on the market mean fewer options and more competition per home. Consequently, buyers purchased over the asking price on more than half of the homes traded in this price tier.
The report also showed that the higher end of the market ($5M to $9.99M) has experienced explosive growth this year. In Westchester, sales are up 240% this quarter, and Greenwich sales have more than doubled year to date. Darien posted five sales year-to-date vs. zero sales in the same period last year.
“Since Covid, real estate has become an increasingly important asset class for high-net-worth individuals. These buyers are aware of the advantages, including diversification and a hedge against inflation, contributing to the surge in this price range. Putting aside the practical benefits, real estate for many net-worth individuals is an asset of passion that one’s family and friends can enjoy,” said Anthony P. Cutugno, Senior Vice President of Houlihan Lawrence.
Over the past six quarters, the sheer number of luxury homes sold has been staggering. The Covid effect has doubled the pace of luxury sales in Westchester and Greenwich. In 18 months, the number of homes sold in Greenwich and Westchester equals the combined total of luxury homes sold in 2017, 2018, and 2019. Buyer appetite, inventory levels, and consumer confidence will determine how long this feverish pace of luxury sales will last.
“Many NYC employers have postponed their return-to-office plans because of the Delta variant. Nonetheless, Google’s $2B Manhattan office building purchase underscores the value of working in an energetic urban environment and within earshot of fellow workers. The more New York City thrives as a preferred workplace location, the greater intrinsic value our north of NYC homes can claim,” Cutugno commented.
