House Sales Down, Prices Up In The 3rd Quarter: Report

HUDSON VALLEY, NY — The third quarter of 2023 saw "significant" declines in sales transactions throughout Westchester, Rockland, Putnam, Orange, Sullivan and Bronx counties, according to a new report from the Hudson Gateway Association of Realtors.

Overall, for-sale residential inventory was down in all markets.

However, HGAR officials said realtors are hopeful that lower interest rates in 2024 may prompt more people to put their homes on the market, propping up inventory and purchase options for prospective homebuyers.

National Association of Realtors Chief Economist Lawrence Yun, during a Oct. 10 visit to the HGAR offices in White Plains, noted that the National Association of Realtors and the National Association of Home Builders recently sent a joint letter to the Federal Reserve requesting a pause in any further interest rate increases for a few months to see if the inflation rate will fall even further in reaction to past interest rate increases.

The 30-year fixed mortgage rate was at 7.67 percent for the week ended Oct. 6, according to the Mortgage Bankers Association — the highest level since 2000.

Yun predicted that by the spring of 2024, lending rates would be somewhere in the mid-6 percent.

"Rents rose 7.4% from a year ago," he said. "This is the main reason why consumer prices are not fully under control and why the Fed refuses to consider cutting interest rates. It is nonetheless inevitable for rent growth to slow because of the construction of multiple new apartments. Inflation and interest rates will be lower next year."

There was some good news. The lack of inventory continues to put upward pressure on prices in the market area, HGAR officials said in the report.

Based on data provided by OneKey MLS, the median sale price of a single-family home increased in Orange, Putnam, Rockland and Westchester, HGAR said.

Year-to-date through Sept. 30, overall sales have fallen sharply in all markets as compared to a healthier market through the first three quarters of 2022—Westchester sales were down 25.9 percent; Putnam sales were down 28.8 percent; Orange County’s overall sales numbers declined 25.8 percent; and Rockland County sales were down 27.3 percent, HGAR said.

The median sale price of a single-family home in the third quarter increased 6.3 percent — to $925,000 — in Westchester County; 1 percent in Putnam County to $510,000; 7.1 percent in Orange County to $450,000; and 4.5 percent in Rockland County to $690,000

According to its members, despite the slowdown in demand, there continues to be intense competition among buyers in all price categories, particularly for homes that are accurately priced, the HGAR report said.