Luxury Home Sales In The HV Posted Double-Digit Declines In 2023

RYE BROOK, NY — Nearly all luxury markets north of NYC experienced double-digit declines in closed sales in 2023, many for the second consecutive year, according to the Houlihan Lawrence 2023 Luxury Marker Report released Friday.

The problem: lack of inventory exacerbated by high interest rates.

However, the real estate firm projected that interest rate cuts by mid-2024 should prompt more sellers to enter the market and help alleviate the inventory shortage.

"We are hopeful that the expectation of lower interest rates in the second half will help improve the trajectory of luxury real estate north of NYC," said Anthony P. Cutugno, Senior Vice President, Private Brokerage.

One area of the luxury market was thriving, according to the report: the number of sales over $10 million in Westchester County and Greenwich were close to all-time highs in 2023.

"Uber-luxury buyers and sellers had the wind at their back," the report said. "Buyers at this level possessing multiple real estate holdings flexed their spending power as they pursued a well-diversified investment portfolio."

The lack of inventory created competition. On average, luxury homes sold for close to 100 percent of list price, the report said.

Days on market did tick up slightly in 2023.

Listings sitting on the market over 100 days are often overlooked by buyers due to price and/or presentation. Conversely, a change in price or staging often transformed a languishing listing into a desirable offering, the report said.

The report noted other several trends in the luxury market.

"There has been a growing interest in sustainability for luxury real estate buyers. Energy efficient homes that monitor energy usage and reduce carbon footprint is one path to sustainability," Cutugno said.

"Preservation is another trend of younger, eco-conscious luxury buyers purchasing period homes with the belief that the greenest home is one that is already built," he said. "Homes built before 1940 tend to be inherently environmentally sustainable, and though updates are often needed, keeping an existing structure intact is the ultimate recycling project for this group of buyers."

Cutugno said all eyes are on this year’s presidential election, and the impact it will have on the economy and the global landscape.

2023 LUXURY MARKETS AT A GLANCE (2023 vs 2022)

Westchester County Luxury Home Sales /$2M and Higher

• Homes Sold: Down 26.7%
• Median Sale Price: Up 0.9%
• Q4 Highest Sale Price: $10,000,000 Bedford

Putnam and Dutchess County Luxury Home Sales /$1M and Higher

• Homes Sold: Down 39.1%
• Median Sale Price: Down 3.9%
• Q4 Highest Sale Price Putnam: $1,750,000 Haldane
• Q4 Highest Sale Price Dutchess: $2,700,000 Washington

Greenwich Luxury Home Sales /$3M and Higher

• Homes Sold: Down 15.2%
• Median Sale Price: Up 6.5%
• Q4 Highest Sale Price: $11,000,000

Darien Luxury Home Sales /$2M and Higher

• Homes Sold: Up 7.3%
• Median Sale Price: Down 5.8%
• Q4 Highest Sale Price: $6,500,000

New Canaan Home Sales /$2M and Higher

• Homes Sold: Down 14.5%
• Median Sale Price: Up 0.4%
• Q4 Highest Sale Price: $7,550,000

- source: Houlihan Lawrence 2023 Luxury Marker Report