Westchesters 1st Quarter 2023
📊The real estate industry had high hopes for 2023 after a rough ending to 2022. However, the first quarter of the year has brought some mixed news. According to data recorded in Westchester County, residential sales have decreased across the board. Total residential sales, including single-family homes, condominiums, co-operatives, and 2-4 family multi-family homes, all saw a decrease in the first quarter of 2023 compared to the first quarter of 2022. Westchester County saw a decrease in residential sales of 32.7%.
However, there is some good news for single-family homes. The median sales price for single-family homes in Westchester County continued to rise, with a 4.3% increase. For the first quarter of 2023, the median sales price for single-family homes in Westchester County was $760,000.
When it comes to average days on the market (DOM), there were some bright spots in several counties, especially for 2-4 family multi-family properties. Westchester County saw an increase in all categories except for condominiums, which had a marginal decrease of 0.7%.
Available inventory continues to fluctuate, with inventory being down in all markets, followed by declines in Westchester (-18.6%). Despite this, HGAR member firms report that buying demand remains high. However, buyer confidence has been shaken by the recent banking crisis, high-interest rates, inflation, and predictions by some economists of an impending downturn or recession later this year.
There has been some recent good news in the form of declining mortgage rates. Many predict that the Federal Reserve may be nearing the end of its policy of raising rates to battle inflation. NAR Chief Economist Lawrence Yun recently said that the longer-term prospect on rates is for further improvement, with a clear possibility of going under 6% by the year’s end. With lower rates, more homebuyers will steadily appear. That is why it is critical to ensure more housing supply to help meet the recovering demand.
