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WPCNR REALTY REALITY. Special to WPCNR from Hudson Gateway Association of Realtors. July 6, 2021:

Residential home sales in the lower Hudson Valley for the second quarter of 2021 continued the recovery from the depths of the Covid-19 crisis a year ago, with every county in the market demonstrating gains in the number of sales as well as increased median sales prices.

In terms of units sold, sales in Westchester were up 59.9% or 2,898 units as compared to 1,812 units in 2020 in the first six months. To provide greater context, when comparing unit sales between the second quarter of 2021 to the second quarter of 2019, Westchester sales increased 16.25%

The median price for single family houses in Westchester County, which has the highest price points, rose 17.6% to $835,000 from $710,000 last year.

While these sales numbers evidence strong resiliency in the housing market, it is important to view them in the context that the housing market in the second quarter of 2020 was in large part frozen by Covid-19 restrictions and an inability to conduct in-person property showings. However, even when comparing the 2nd quarter 2021 sales to the pre-pandemic 2nd quarter of 2019, the increases are still significant.

Orange County experienced a 57.3% increase in sales going from 744 units in 2020 to 1,170 units in 2021 second quarter. Putnam and Sullivan counties were each up significantly, Putnam with 350 sales compared to 260 in 2020 and Sullivan County with 356 units sold from 197 units in 2020. In Rockland County sales increased 74.5% to 850 units from 487 in 2020. While not considered a suburb, sales in Bronx County increased 101.7% at 599 units sold compared to 297 units in the second quarter of 2020.

Quarter to Quarter, Orange County increased 13.7%, Putnam increased 27.27%, Sullivan increased 56.83%, Rockland increased 33.86% and the Bronx increased 21.75%.

Median sales price (the point that indicates the exact middle of the market) also increased in every area and continues to exceed the “bubble” prices of the 2008-2009 market.

The median sale price for a single-family residential unit in Orange County rose 20.8% to $360,000 (from $298,000 one year ago), exceeded by an increase of 31.4.% in Sullivan County to $229,900 from $175,000 one year ago. The median sale price for a single-family residence rose in Putnam County by 23.3% to $442,000 (from $358,400), in Rockland County by 15.8% to $550,000 (from $475,000) and Bronx County saw a 7.2% increase to $565,000 (from $527,000) as compared to the second quarter of 2020.

Sales of condominium units increased in in all counties (except Sullivan) and co-op sales in Westchester and Bronx counties continued to surge.

Co-op sales have been lagging in both counties for the past year AND PRICE but rebounded in Q1, 2021. It is likely that this rebound can be attributed to the dearth of choices in other housing types as well as the fact that co-ops remain an affordable alternative, at a median sale price of $190,000 (identical to the median co-op price in the 2nd quarter of 2020) in Westchester County and $230,000 in Bronx County, for first time buyers and other potential purchasers unable to afford rising single family home prices.

While the housing market continues to be plagued by a lack of inventory, it is still supported by low interest rates and an economy and job market which is surging as a result of Federal stimulus monies which were pumped into the economy over the last year.

While the lower Hudson Valley markets may have initially benefited by Manhattan residents departing the city for the suburbs, (a trend which may well have been over-stated) the New York City residential market is also showing signs of a strong recovery. It could be argued that the increased sales numbers throughout the New York City and greater suburban area are the result of the pandemic accelerating the natural migration of home-owners who might
otherwise have delayed home purchasing and selling decisions. The same questions about the sustainability of the current market continue to exist, especially with rising prices.

With the economic recovery in full swing, it appears that the housing market should remain strong for the balance of 2021.