EXECUTIVE SUMMARY

In the first quarter of 2023, the state of the real estate market in Westchester and Putnam counties is much the same as it was in Q4 2022. While demand remains high, inventory continues to decline to record lows, and sales, as a result, are down in parallel. In fact, in Westchester County, the scarcity of inventory has unit sales pacing to the lowest levels they have been in the last 10+ years. A few areas have experienced lower demand in luxury price points, but most brackets continue to be in high demand.

Dutchess County, however, is beginning to exhibit the anticipated post-Covid normalization. Inventory, in some areas, is on the rise while sales continue to decline. It is not unusual that inventory would rise in Dutchess. Many parts are largely second home markets that were in extreme demand during the pandemic rush. And while there has been a slight slowdown, demand is still considered strong for properly priced properties.

A more interesting view is to compare the first quarter of 2023 to the market pre-Covid in 2019. From that perspective, inventory in Westchester County is down 68%, with the median year-to-date sale price up 25.6%. Putnam County’s inventory is also down 68%, with the median sale price up a staggering 38% year-to-date. Compared to 2019, Dutchess County’s inventory is down 42% with the median price also up 38%.

Interest rate hikes and the recent threats to the banking industry continue to impact the industry, with some buyers more hesitant to trade their record low interest rates for less favorable ones, and overall, a sensitivity to pricing. The inventory quandary, however, has continued to drive a predominantly sellers’ market forward. Compared to other parts of the country, the marketplace North of NYC remains strong.

With Warm Regards,

Liz Nunan President and CEO