Luxury Homes Sales Keep Leaping Up In The Hudson Valley

RYE BROOK, NY — Sales of luxury homes in Westchester, Putnam and Dutchess counties posted gains in the third quarter and year-to-date, with nearly every price range realizing an increase, according to the Houlihan Lawrence Q3 Luxury Market Report released Monday.

Shifts in buyer attitudes are hard to quantify but important to the health and longevity of the robust market, the report said. Price range and level of competition influence buyers’ mindset.

"Since COVID, real estate has become an increasingly important asset class for high-net-worth individuals," said Anthony P. Cutugno, Senior Vice President of Houlihan Lawrence. "These buyers are aware of the advantages, including diversification and a hedge against inflation, contributing to the surge in this price range. Putting aside the practical benefits, real estate for many net-worth individuals is an asset of passion that one’s family and friends can enjoy."

Over the past six quarters, the sheer number of luxury homes sold has been staggering, he said.

The COVID effect has doubled the pace of luxury sales in Westchester and Greenwich. In 18 months, the number of homes sold in Greenwich and Westchester equals the combined total of luxury homes sold in 2017, 2018, and 2019. Buyer appetite, inventory levels, and consumer confidence will determine how long this feverish pace of luxury sales will last.

"Many NYC employers have postponed their return-to-office plans because of the Delta variant. Nonetheless, Google’s $2B Manhattan office building purchase underscores the value of working in an energetic urban environment and within earshot of fellow workers," Cutugno said. "The more New York City thrives as a preferred workplace location, the greater intrinsic value our north of NYC homes can claim."

The lower end of the luxury market ($2 million to $2.99 million) in Westchester was hyper-competitive, thanks to extremely tight inventory levels. Fewer homes on the market meant fewer options and more competition per home. Consequently, buyers purchased over the asking price on more than half of the homes traded in this price tier.

The report also showed that the higher end of the market ($5 million to $9.99 million) has experienced explosive growth in 2021. In Westchester, sales were up 240 percent in the third quarter.

Q3 MARKETS AT A GLANCE

Westchester County Luxury Home Sales /$2M and Higher

• Homes Sold: Up 32.6%
• Median Sale Price: Up 2.8%
• Highest Sale Price: $9,850,000 Scarsdale

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

• Homes Sold: Up 17.9%
• Median Sale Price: Down 3.1%
• Highest Sale Price Putnam: $3,500,000 Garrison
• Highest Sale Price Dutchess: $3,900,000 Washington and Clinton

For comparison, look at these three communities in Connecticut.

Greenwich Luxury Home Sales /$3M and Higher

• Homes Sold: Up 30.4%
• Median Sale Price: Up 6.5%
• Highest Sale Price: $15,088,000

Darien Luxury Home Sales /$2M and Higher

• Homes Sold: Down 4.0%
• Median Sale Price: Up 3.8%
• Highest Sale Price: $7,500,000

New Canaan Home Sales /$2M and Higher

• Homes Sold: Up 22.5%
• Median Sale Price: Down 3.1%
• Highest Sale Price: $4,995,000