Hits: 156

Limited Supply Fuels Price Growth in the Greater New York City Metropolitan Area

(NOTE : Link to ALL regional reports:  Market Data (hgar.com).)

In Westchester County, January sales of single-family homes and co-ops decreased 12.7% and 19.2% respectively, while condo sales increased 1.4% compared to January of 2023. The median sales price increased 5.4% to $858,250 for single-family homes and 31.5% to $562,000 for condos. The median sales price for co-ops decreased 1.6% to $182,000.

New condo listings increased 15.5% while new co-op listings declined 18.3%. New listings for single-family homes decreased by just 2.2%. Overall inventory of single-family homes for sale declined by almost 30%, while co-op inventory was down by 37% and condos, 16.3%. Pending home sales rose 6.9% in Westchester as compared to a year earlier.

January home sales continued to decline, while prices increased in most markets in the Greater New York City Metropolitan area, according to a report released today by the Hudson Gateway Association of Realtors (HGAR), based on data supplied by OneKey® MLS. A limited supply and strong demand are responsible for the current market conditions.

However, as the spring selling season approaches, the region’s home sales sector is bolstered by a noticeable increase in pending sales throughout the region, HGAR officials noted.

With the prospect of lower mortgage rates as the Federal Reserve Board considers multiple rate cuts this year, home sales are expected to increase as more homes come to the market beginning in the spring and summer months.

“With mortgage interest rates moving slightly higher now, we continue to experience the trend of people taking a ‘wait and see’ approach before deciding to list their homes for sale, but would caution against trying to time the real estate market based on such marginal changes,” noted HGAR President Carmen Bauman. “Nevertheless, we do anticipate more movement during the Spring with additional inventory on the market.”

Sales of single-family homes declined in all six of HGAR’s coverage areas, while some counties experienced increases in co-op or condo sales. All six regions saw prices increases in all property types.

“While it will take some time to have the HGAR home sales market fully reset from the impacts of high inflation and mortgage interest rates, home sales are projected to rise significantly in each of the next two years as the market steadily returns to normal sales activity,’” said HGAR Chief Executive Officer Lynda Fernandez.