Houlihan Lawrence Q3 Luxury Market Report

Houlihan Lawrence Luxury Market Report

3rd Quarter 2012

Westchester, Putnam and Dutchess Counties

HoulihanLawrence.com

Presented by Anthony Cutugno Senior Vice President Director of Luxury Country Properties Direct: 914.234.0308 ACutugno@houlihanlawrence.com

Q3-2012 Luxury Market Report

houlihanlawrence.com

Q3-2012

Executive Summary

October, 2012

Welcome to our latest update on the local luxury real estate market summarizing luxury sales activity through Q3-2012 for properties priced at $2 Million or more in Westchester County and $1 Million + in Putnam and Dutchess.

Recent signs indicate that the relatively robust market environment we saw in Q2 has slowed somewhat and overall we are now in a period of modest growth. Year-to-date, Westchester County sales increased modestly with a 4.9% increase in total luxury homes sold and a 3% increase in total dollar volume. Combined luxury sales in Putnam and Dutchess Counties declined vs. a year ago. Despite the more restrained market environment region-wide, there is plenty of room for optimism as several individual southern Westchester markets are continuing to enjoy record sales.

Rye, Scarsdale, Bronxville and Larchmont/Mamaroneck are all registering substantial increases as a reduced inventory of high-end properties coupled with a strong buyer pool have kept demand high. History tells us that it is only a matter of time before luxury buyers turn their attention to points north where the supply/demand ratio is especially favorable to them at this point in time. Luckily, they’ll have plenty of options to choose from as our current inventory of estate properties is truly extraordinary.

At Luxury Country Properties, we remain enthusiastic about the future and are employing new strategies to create excitement about our luxury offerings. One of our latest initiatives is a new association with 1stdibs.com, the leading online marketplace presenting rare art, antiques and decorative items from dealers around the globe.

Attracting more than 2 million visitors a month including the world’s top designers and collectors, this new partnership will expose our premier listings to a valuable high-net worth audience with considerable international reach as well. Look for us on 1stdibs.com beginning this November.

In the meantime, if you have any questions about the luxury market or would like information on our exclusive Luxury Country Properties Program, please contact us at 914.234.0308 or via email at lcp@houlihanlawrence.com.

Anthony Cutugno Senior Vice President Houlihan Lawrence Luxury Division

Q3-2012 Luxury Market Report

houlihanlawrence.com

Despite a soft quarterly report, Westchester County YTD 2012 sales reflects a modest increase vs. year ago for both Total Homes Sold and Total Dollar Volume.

Westchester County represented 89% of all luxury sales in the region YTD 2012.

Putnam County reigstered substantial increases in Q3-2012 vs Q3-2011.

Westchester County Luxury Home Sales - $2 Million & Higher Q3-2012

Q3-2011

% Change

YTD 2012

YTD 2011

% Change

72

94

-23.4%

192

183

4.9%

$198,102,768

$277,404,630

-28.6%

$567,723,248

$551,403,800

3.0%

$2,506,250

$2,477,500

1.2%

$2,600,000

$2,594,000

0.2%

Average Price Per Square Foot

$544

$541

0.6%

$553

$547

1.1%

Average Days on Market

198

185

7.0%

210

214

-1.9%

% Sale Price to List Price

94.2

94.8

-0.6%

93.6

93.4

0.2%

Homes Sold Total Dollar Volume Median Sale Price

Putnam County Luxury Home Sales - $1 Million & Higher Q3-2012

Q3-2011

% Change

YTD 2012

YTD 2011

% Change

4

3

33.3%

9

9

0.0%

Total Dollar Volume

$7,660,000

$4,025,000

90.3%

$15,317,500

$18,425,000

-16.9%

Median Sale Price

$1,987,500

$1,375,000

44.5%

$1,420,000

$1,495,000

-5.0%

Average Price Per Square Foot

$440

$412

6.8%

$401

$485

-17.3%

Average Days on Market

297

371

-19.9%

272

256

6.3%

% Sale Price to List Price

88.7

88.0

0.8%

88.0

91.9

-4.2%

Homes Sold

Dutchess County Luxury Home Sales - $1 Million & Higher Q3-2012

Q3-2011

% Change

YTD 2012

YTD 2011

% Change

6

10

-40.0%

15

17

-11.8%

Total Dollar Volume

$8,467,500

$13,386,350

-36.7%

$24,407,500

$61,127,950

-60.1%

Median Sale Price

$1,275,000

$1,270,550

0.4%

$1,315,000

$1,575,000

-16.5%

Average Price Per Square Foot

$322

$401

-19.7%

$455

$529

-14.0%

Average Days on Market

370

168

120.2%

346

249

39.0%

% Sale Price to List Price

82.6

92.3

-10.5%

86.7

77.7

11.6%

Homes Sold

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service.

3rd Q–2012 Luxury Market Report houlihanlawrence.com

Houlihan Lawrence remains the leader in luxury home sales throughout the region.

Westchester County Luxury Home Sales $2 Million & Higher

Houlihan Lawrence 56%

17%

6%

Putnam & Dutchess Counties Luxury Home Sales $1 Million & Higher

Houlihan Lawrence 56%

14%

7%

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

Q3-2012 Luxury Market Report

houlihanlawrence.com

YTD 2012, over 70% of luxury homes purchased in Westchester sold for under $3 Million.

80% of luxury homes purchased in Putnam & Dutchess YTD closed between $1-1.999 Million.

The top-tier of the market is less robust with only 1 property closing in Q3-2012 over $5 Million.

Westchester County Luxury Home Sales Price Range

Q3-2012

Q3-2011

% Change

YTD 2012

YTD 2011

% Change

$2,000,000 - $2,999,999

57

71

-19%

138

131

5%

$3,000,000 - $4,999,999

14

16

-12%

47

46

2%

$5,000,000 - $9,999,999

1

6

-83%

9

12

-25%

$10,000,000 and up

0

1

-100%

0

1

-100%

Market Totals

72

94

-23%

194

190

2%

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

Putnam & Dutchess County Luxury Home Sales Price Range

Q3-2012

Q3-2011

% Change

YTD 2012

YTD 2011

% Change

$1,000,000 - $1,999,999

8

13

-38%

20

18

11%

$2,000,000 and up

2

0

Not Valid

4

9

-55%

Market Totals

10

13

-23%

24

27

-11%

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

Q3-2012 Luxury Market Report houlihanlawrence.com

Scarsdale ranked as the most popular luxury market this quarter, leading in both Total Homes Sold and Highest Sales Price.

Scarsdale was the only market to record a sale over $5 Million in Q3-2012.

No individual market emerged as a strong leader in Putnam and Dutchess counties.

Top Luxury Markets Westchester County Luxury Home Sales $2 Million & Higher

School District

# of Sales

Median Luxury Sale Price

Highest Sale Price

Scarsdale

23

$2,555,018

$5,100,000

Rye City

11

$2,765,000

$4,575,000

Bronxville

8

$2,450,000

$3,000,000

Mamaroneck

8

$2,875,000

$4,925,000

Bedford

4

$2,450,000

$4,450,000

Byram Hills

4

$2,842,500

$3,250,000

Harrison

3

$2,685,000

$2,900,000

Putnam County Luxury Home Sales $1 Million & Higher

Town/City

# of Sales

Median Luxury Sale Price

Highest Sale Price

Carmel

2

$1,367,500

$1,550,000

Philipstown

1

$2,425,000

$2,425,000

Kent

1

$2,500,000

$2,500,000

Dutchess County Luxury Home Sales $1 Million & Higher

Town/City

# of Sales

Median Luxury Sale Price

Highest Sale Price

Red Hook

2

$1,527,500

$1,805,000

Dover

1

$1,800,000

$1,800,000

Washington

1

$1,300,000

$1,300,000

Stanford

1

$1,175,000

$1,175,000

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service

Q3-2012 Luxury Market Report

houlihanlawrence.com

The better balance between supply and demand in southern Westchester has continued to fuel significant sales.

High inventory levels and a smaller pool of luxury buyers in northern Westchester, Putnam and Dutchess counties continues to be an obstacle to growth.

Supply/Demand Snapshot Southern Westchester County - $2 Million & Higher As of September 30, 2012

Price Range $2,000,000 - $2,999,999 $3,000,000 - $4,999,999 $5,000,000 - $9,999,999 $10,000,000 and up

As of September 30, 2011

2012 vs. 2011

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

% Change in Listings

% Change in Pendings

118 63 21 7

23 6 6 1

5 11 4 7

126 54 24 3

10 9 1 1

13 6 24 3

-6.3% 16.7% -12.5% 133.3%

130.0% -33.3% 500.0% 0.0%

*Supply Demand Ratio Key 1-4: High Demand 5-6: Balanced 7-9: Low Demand 10+: Very Low Demand

Northern Westchester County - $2 Million & Higher As of September 30, 2012

Price Range $2,000,000 - $2,999,999 $3,000,000 - $4,999,999 $5,000,000 - $9,999,999 $10,000,000 and up

As of September 30, 2011

2012 vs. 2011

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

% Change in Listings

% Change in Pendings

80 47 19 13

4 5 0 0

20 9 Not Valid Not Valid

66 52 23 11

7 1 0 0

9 52 Not Valid Not Valid

21.2% -9.6% -17.4% 18.2%

-42.9% 400.0% 0.0% 0.0%

*Supply Demand Ratio Key 1-4: High Demand 5-6: Balanced 7-9: Low Demand 10+: Very Low Demand

Putnam County - $1 Million & Higher As of September 30, 2012

Price Range $1,000,000 - $1,999,999 $2,000,000 and up

As of September 30, 2011

2012 vs. 2011

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

% Change in Listings

% Change in Pendings

38 13

4 0

10 Not Valid

40 13

0 0

Not Valid Not Valid

-5.0% 0.0%

0.0% 0.0%

*Supply Demand Ratio Key 1-4: High Demand 5-6: Balanced 7-9: Low Demand 10+: Very Low Demand

Dutchess County - $1 Million & Higher As of September 30, 2012

Price Range $1,000,000 - $1,999,999 $2,000,000 and up

As of September 30, 2011

2012 vs. 2011

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

SUPPLY Active Listings

DEMAND Pending Sales

Supply/ Demand Ratio*

% Change in Listings

% Change in Pendings

69 52

4 3

17 17

62 58

4 0

16 Not Valid

11.3% -10.3%

0.0% 0.0%

*Supply Demand Ratio Key 1-4: High Demand 5-6: Balanced 7-9: Low Demand 10+: Very Low Demand

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service.

Southern Westchester (Zones 3-8), Northern Westchester (Zone 1-2).

Q3-2012 Luxury Market Report houlihanlawrence.com

Ten-Year Market History Westchester County

Homes Sold $2 Million & Higher

Putnam County

Homes Sold $1 Million & Higher

Dutchess County

Homes Sold $1 Million & Higher

Source: Empire Access Multiple Listing Service & Mid-Hudson Multiple Listing Service.

HOULIHAN LAWRENCE LUXURY COUNTRY PROPERTIES Over 20 years ago, the Luxury Country Properties Division of Houlihan Lawrence was created to serve the special needs of the luxury marketplace. Headquartered in Bedford, the Luxury Country Properties team, under the leadership of veteran luxury real estate expert, Anthony P. Cutugno, develops customized programs designed to differentiate estate properties from other listings on the market.

Founded upon a tradition of exceptional client service and marketing expertise, our programs for these properties are designed to attract discerning customers throughout the region and around the globe. Encompassing a blend of new media as well as traditional time-honored marketing approaches, each program is customized to promote a property’s unique qualities.

This expertise when combined with the powerful Houlihan Lawrence brand recognition has made us the leading authority on luxury residential real estate in Westchester, Putnam and Dutchess counties.

For more information on our Luxury Country Properties program or to subscribe to our monthly newsletter, please contact us at lcp@houlihanlawrence.com

914.234.0308 houlihanlawrence.com