The Putnam County housing market surprisingly struggled through the first quarter of 2017, with sales and prices both down, even while the rest of the Hudson Valley was up. We believe this is a short-term blip in the data, and that Putnam is poised for better results in 2017.
Sales. Putnam single-family home sales were down over 6% for the quarter, only the second time quarterly sales have fallen in five years. For the year, sales were up over 12%, so the first quarter numbers might just be a quirk in the data.
Prices. Pricing was also down across the board, falling almost 7% on average and about 1% at the median and in the price-per-square-foot. Again, for the year, the pricing results are more mixed. We have been expecting meaningful appreciation in Putnam for some time now, and still believe that low levels of inventory and stable demand will drive prices up this year.
Inventory. Inventory continued to tighten, falling almost 30% and now down to under the six-month level that usually denotes a tightening seller’s market. With inventory this low, we would expect to see some upward pressure on pricing.
Negotiability. The days-on-market were down and the listing retention rate was up, exactly what we would expect in a strengthening seller’s market — homes selling more quickly and for closer to the asking price.
Condos. The condo market was also a little weak, with sales and prices both down for both the quarter and the year. Inventory was ridiculously low, though, down to just over three months, so we do believe that the market is poised to come back in the Spring.
Going forward, we believe that these lackluster first quarter results are anomalous, and that Putnam is poised for a stronger 2017. The fundamentals of the market are tremendous: inventory is ludicrously low, rates are near historic lows, and prices are still at attractive 2004-05 levels. So we are hopeful that we will see rising sales and prices in a robust Spring market.