First Quarter 2023 Market Report Finds Continued Sales Declines in Low Inventory Market With High Buyer Demand
Median Prices Stay Up in Competitive Buying Environment According to Report by William Pitt Sotheby's International Realty and Julia B. Fee Sotheby's International Realty
STAMFORD, Conn., April 5, 2023 /PRNewswire-PRWeb/ -- A report detailing market results for the first quarter of 2023 in Fairfield and Litchfield Counties, the Shoreline and the Farmington Valley in Connecticut, the Berkshires in Massachusetts, and Westchester County, New York, has just been released by William Pitt Sotheby's International Realty and Julia B. Fee Sotheby's International Realty, the company announced today.
The report found that closed sales volume and units decreased significantly versus the same quarter last year in every market the company serves. In Westchester County, New York, volume declined on a quarterly basis by 30% and units by 33%, while in Fairfield County, Connecticut, the decreases were slightly higher at 38% for volume and 37% for units. On the lower end of the sales decline spectrum, Middlesex County, Connecticut, experienced decreases of 18% in volume and 26% in units, while on the higher end of that spectrum, the Berkshires in Massachusetts experienced decreases of 40% in volume and 31% in units. Every other market fell somewhere in between.
One of the most significant reasons for the drop-off in sales is the shortage of inventory in the face of ongoing heightened buyer demand, the report stated. Compared to the first quarter of 2022, inventory this quarter was down again in markets such as Fairfield and Westchester Counties. Last quarter, the company reported that the decreases in inventory were not quite as significant as they had been in prior quarters, and that trend held in this quarter—inventory still declined, but not by as much as it has for several quarters now. Some counties even demonstrated small increases in inventory, including New Haven, Middlesex, New London and Hartford. Nevertheless, these increases are only relative to historic lows, and overall inventory remains far below historic norms. Properties currently going into contract greatly decreased this quarter by both units and volume, indicating that the next quarter will again perform below the same time last year.
Given the supply and demand imbalance, heavy competition among buyers has benefited sellers and caused median prices to rise on a consistent basis, the report said. In all the counties the company serves, 12-month median selling prices this quarter remained higher than they were this time last year, although in some counties the increases were not as large as they have been in recent quarters.
"It is rare to witness all the dynamics currently impacting our housing markets play out at once. There have been periods of higher mortgage rates, fragility in the economy, declining sales, increased prices, low inventory and strong buyer demand, but not necessarily all at the same time," said Paul Breunich, Chairman and Chief Executive Officer of William Pitt Sotheby's International Realty and Julia B. Fee Sotheby's International Realty. "There are buyers, but sales cannot improve until there are more properties to sell. We encourage homeowners who are thinking of selling but sitting on the sidelines to list now and take advantage of the incredible demand that still exists."
The 2023 First Quarter Market Watch is available on the firm's website at williampitt.com.
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About William Pitt Sotheby's International Realty and Julia B. Fee Sotheby's International Realty
Founded in 1949, William Pitt Sotheby's International Realty and Julia B. Fee Sotheby's International Realty manages a $5.8 billion portfolio with more than 1,100 sales associates in 27 brokerages spanning Connecticut, Massachusetts, and Westchester County, New York. The company is one of the largest Sotheby's International Realty(R) affiliates globally and the 35th-largest real estate company by sales volume in the United States. For more information, visit the website at williampitt.com.
Sotheby's International Realty's worldwide network includes 1,075 offices throughout 81 countries and territories on six continents.
Media Contact
Andrew Wood, William Pitt Sotheby's International Realty, 203-644-1938, [email protected]
SOURCE William Pitt Sotheby's International Realty
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