It is no surprise that the lack of inventory has created a significant slowdown in the Westchester County real estate market. The number of homes sold is down at nearly the same rate as new listings brought to the market for the first quarter, -7.4% and -7.9%, respectively. There were 2,140 single-family homes, condos and coops sold in the first three months of 2022 at an average price of $739,340, up 6.2% year over year. Showings per listing and offers per listing remain at record highs. This strong demand also increased the state’s average list-to-sale price ratio, now 100%. This means that most homes sold in Westchester County are selling considerably above the list price. While the statistics in this report show decreases in many categories when compared to 2021, it is essential to note that more single-family homes were sold in the first quarter of 2022 compared to 2020, 2019, and 2018, even with fewer homes on the market and at prices outpacing the same period.
The momentum in the luxury home sale market remained consistent in the first quarter of the year, with the higher segments outpacing 2021. Homes priced over $2 million spent fewer days on the market and there were more homes sold overall year over year (108 vs. 87). Rye saw a surge in luxury home sales this quarter, at an average price of $3.6 million which is 25% higher than last year. Double digit luxury homes were sold in Scarsdale, Eastchester, Harrison, Mamaroneck, and Bedford.
New home construction has been substantially impacted due to a severe labor shortage, supply-chain disruptions associated with trade wars and COVID, rapid inflation in raw materials, and land shortages driven by zoning restrictions land-use regulations*. Berkshire Hathaway HomeServices has seen an uptick in new rental project planning and singular land sale new builds. On the continuum from previous trends, demand for the new product continues to well-exceed building permits as buyers prioritize privacy, flex space to work from home, and sustainable features. New home construction supply is likely to be constrained well into the future, continuing to fuel the resale and home improvement markets.
Millennials made up the largest share of home buyers in 2021, according to NAR’s recent Gen Trends Report. Many of whom have been saving further into adulthood and capitalized on the low mortgage rates. However, the continued upward movement of rates in Q1 has significantly increased the borrowing cost for buyers and may price out many new buyers this year. With rising home prices combined with rising mortgage rates, the income that households need to earn to afford to buy has increased significantly, drastically impacting housing affordability. The increased cost of buying may cause some buyers to retreat and lead to a more balanced market by the end of the year, aided by an increase in inventory. According to a new survey from Realtor.com, around 64% of prospective sellers in 2022 plan to list their homes over the next six months, according to the firm’s data, indicating a potential return to seasonality in housing markets**.
Navigating the current market as a seller or buyer is complex, and there has not been a time in recent history with the lack of inventory coupled with such strong demand. Berkshire Hathaway HomeServices sales executives have the information, partners, and resources to fully support clients in selling their homes or securing one.
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Rosemary Camas
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Rosemary S. Camas 