William Pitt - Julia B. Fee Sotheby's International Realty Releases Third Quarter 2021 Market Report
Housing markets could not compete with last year's massive third quarter gains, but still outperformed historical norms
STAMFORD, Conn., Oct. 5, 2021 /PRNewswire-PRWeb/ -- A report detailing market results for the third quarter of 2021 in Fairfield, New Haven, Middlesex, New London, Litchfield and Hartford Counties, Connecticut, the Berkshires in Massachusetts, and Westchester County, New York, has just been released by William Pitt-Julia B. Fee Sotheby's International Realty, the company announced today.
The report found that residential real estate sales started to decline versus the third quarter in 2020, a sharp reversal after so many quarters of enormous increases, but still outperformed historical norms. The company made its analysis in the context of concluding a historic 12-month cycle where sales eclipsed the prior year by record levels, and then entering a period of competing with that same historic timeframe. The company took the additional step of supplying comparisons not just to 2020's third quarter, but to that of 2019 as well, a more normal sales period. Whereas most markets underperformed versus last year's highly active third quarter, all territories surpassed the third quarter from two years ago.
Inventory remains tight, an additional factor in the quarterly sales decline. With fewer homes on the market, unit sales have decreased, even as heavy competition for homes and multiple bids have led to soaring median sale prices and properties selling for well over asking. This increase in prices is reflected in a consistent double-digit percentage spread between unit sales and dollar volume. The middle to upper end sectors are faring well in Westchester and Fairfield Counties, with sales rising in the $1.2+ and $2+ million segments, respectively. As more properties transact at higher price points, lower priced sales are trending downward.
Fairfield County, Conn., encapsulated each of these trends. Unit sales and dollar volume across the region were down quarter over quarter—by 24% and 11%, respectively—but increased dramatically versus the third quarter of 2019 by 18% and 75%. The 12-month median sale price was also up over this time last year by 21%.
Elsewhere in Connecticut, New Haven County unit sales were down by 14% and dollar volume a slight 1% compared to the third quarter last year, but units rose by 4% and volume by 33% over 2019's third quarter. Middlesex County saw unit sales and dollar volume decline by 21% and 11%, respectively, versus last year's third quarter, but increase over the same quarter in 2019 by 6% and 35%. New London County unit sales decreased by 14% and volume by 7% compared to the third quarter in 2020, while units were up by 9% and volume by 42% over the third quarter in 2019. In Litchfield County, units and volume dropped by 28% and 31%, respectively, from last year's third quarter, as they increased by 1% and 48% from 2019's third quarter. Hartford County unit sales decreased quarter over quarter by 10% as volume increased by 2%, while units and volume both increased over 2019's third quarter by 11% and 37%, respectively. In Massachusetts, Berkshire County saw quarterly unit sales decline by 30% and volume by 22%, while a comparison with this quarter two years ago shows unit sales down by 10% with volume climbing ahead by 35%. Median sale prices in each of these regions rose by double digit percentages from 2020 to 2021.
Only Westchester County, N.Y., defied the same pattern of quarterly sales declines, but the report noted that Westchester's period of market growth started several weeks later than other markets last year, coinciding with that county's later reopening from COVID-related shutdowns. As a result, the region continued to experience sales growth in the third quarter compared to the same period last year, with unit sales increasing by 6% and dollar volume by 16%, and the 12-month median sale price up by 10%. Sales also increased over the third quarter of 2019 by 19% in units and 47% in volume. Pending property sales reveal that Westchester should perform similarly to Connecticut by next quarter. Contracts are off by roughly 25-35% across all markets compared to this time last year.
Bolstered by the performance of the first two quarters, year to date nearly every market is still ahead of last year.
"Even if the fever pace of the market has cooled compared to the last several quarters, property sales and demand for housing remain at historic highs, especially considering the pre-pandemic 2019 market as a baseline of comparison," said Paul Breunich, President and Chief Executive Officer of William Pitt-Julia B. Fee Sotheby's International Realty. "Our positive outlook for the months ahead is also supported by the economic picture at the national level, signaling continued momentum in real estate for some time to come."
The Third Quarter 2021 Market Watch is available on the firm's website at williampitt.com.
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About William Pitt - Julia B. Fee Sotheby's International Realty
Founded in 1949, William Pitt - Julia B. Fee Sotheby's International Realty manages a $5.9 billion portfolio with more than 1,100 sales associates in 27 brokerages spanning Connecticut, Massachusetts, and Westchester County, New York. William Pitt - Julia B. Fee Sotheby's International Realty is one of the largest Sotheby's International Realty(R) affiliates globally and the 37th-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 1,000 offices throughout 75 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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