The housing market in New York City’s suburbs slowed dramatically in the third quarter of 2022, with regional sales down sharply even while prices continued to soar to record levels.
Even with demand softening, sellers still have strong negotiating leverage over buyers. Homes in many of our regional markets are still selling for above the asking price.
– Joe Rand, Chief Creative Officer at Howard Hanna | Rand Realty
The Market Overview:
Sales. Sales throughout the region were down over 20% from last year’s third quarter, falling in virtually every market. The sharp increase in interest rates that started earlier this year, combined with serious concerns about the overall economy and inflation, clearly impacted buyer demand.
Moreover, we also have supply challenges, with fewer listings coming onto the market and inventory still at historic lows.
Pending. We see the same decline in pending sales, which are deals that went into contract during the quarter and are a leading indicator for future closed sales. Regional pending sales were down over 17% from last year’s third quarter, which indicates that we’re likely to see closed numbers in the fourth quarter well below last year’s levels.
Average Prices. Even with the slowdown in demand, we still saw very strong price appreciation through the third quarter. Regional average prices were up over 8% from last year and were up sharply in every county in the region. Even with the higher interest rates, buyer demand was still strong enough to continue to drive meaningful price appreciation.
Inventory. Housing inventory remained at historic lows, which continued to put upward pressure on prices even with rates higher and demand slowing. Even with prices up, not enough homeowners are being attracted to the market to meet our demand.
Going forward, we expect the slowdown to continue through the rest of the year and into 2023. High-interest rates, lingering economic concerns, and a lack of good inventory will continue to stifle sales. And even though low inventory will continue to drive some price appreciation through the end of the year, we believe that by early 2023 we will see prices level off and even give back a little of the historic price appreciation homes have experienced over the past three years.
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Westchester and Hudson Valley Q3 Market Report
Northern New Jersey Q3 Market Report
Fairfield County Q3 Market Report
About Howard Hanna | Rand Realty: Howard Hanna Rand Realty has more than 1,100 residential real estate sales associates serving New York, New Jersey, and Connecticut suburbs of New York City. Its 34 offices serve Westchester County, Rockland County, Orange County, Sullivan County, Dutchess County, Ulster County, Putnam and the Bronx in New York, Bergen County, Passaic County, Hudson County, Morris County, Essex County, and Union County in New Jersey, and Fairfield County in Connecticut. Rand also owns and operates Rand Commercial, a commercial real estate brokerage, and Hudson United Home Services, which provides residential mortgage lending, title services, and personal and commercial insurance. For more information, visit https://randrealty.com.
About Howard Hanna Real Estate Services: Howard Hanna Real Estate Services is the largest privately held real estate broker in the United States. The full-service real estate company has nearly 500 real estate, mortgage, insurance, title, and escrow service offices across 13 states, including Allen Tate Realtors® in the Carolinas and F.C. Tucker Company in Indiana, with more than 14,000 sales associates and staff, including many of the industry’s top-producing real estate agents. For more information, visit www.HowardHanna.com.