HV Home Sales Affected By Lack Of Inventory

HUDSON VALLEY, NY — Home sales in the lower Hudson Valley continue to be affected by lack of homes for sale, rising interest rates and inflation during the third quarter of 2022.

According to the Hudson Gateway Association of Realtors, there is still consistent demand from buyers in spite of the adverse conditions — especially when compared with the pre-pandemic 2019 market.

While total transactions are down from the previous year, median sales prices continue to increase throughout the market, driven in large part by low inventory.

A more seasonal market, which disappeared during the latter half of 2020 and all of 2021, seems likely to be back, realtors said.

In Westchester County, third quarter single-family sales of 2,006 declined 15.6 percent, compared to the same period in 2021.

However, when compared to the third quarter of 2019, single-family home sales in Westchester were up 3.4 percent. Condo sales decreased by 24.5 percent, and co-op sales were on par with the previous third quarter.

The single-family median sale price of $872,000 posted a 2 percent increase over last year. The condo median sale price of $460,000 was slightly down, and the co-op median sale price of $204,000 was 2.3 percent higher than the previous year.

In Putnam County, single-family home sales of 326 were down a little more than 10 percent, compared to the third quarter of 2021. However, when compared to 2019, sales were almost identical, the association said.

The median sales price of $505,000 was 8.6 percent higher than the third quarter of 2021.

Rockland County also saw a drop in transactions, with single-family home sales down 9.2 percent and condo sales down 15.8 percent. However, the numbers are slightly ahead of the same time period of 2019.

The single-family median sales price in Rockland of $660,000 for the third quarter of 2022 was 14.2 percent higher than 2021.

Orange County saw a drop in single-family home sales in the third quarter. There were 1,019 sales which was down 14 percent over the same period in 2021. Condo sales were down even more, at 23.3 percent. Median sales prices were up 9.1 percent for single-family homes and 13.4 percent for condos.

The association said, given the grim drumbeat of negative economic headlines and the ongoing debate of whether there will be a recession, it’s obvious that the market won’t be immune to such significant headwinds.

However, third quarter sales numbers do not necessarily support the doom and gloom forecasts that many like to make, especially when comparing numbers to the pre-pandemic market of 2019.

Also, the strong labor market seems to be playing a role in counterbalancing some of the adverse economic factors.

As was the case at the end of the second quarter, the wild card, the association said, in this analysis is a potential recession in 2023, and the length and depth of one should it occur.

Until then, the numbers support a conclusion of a resilient real estate market that is hampered by low inventory but still supported by strong buyer demand.