After two years of soaring real estate sales, signs of moderation are seen ahead
STAMFORD, Conn., July 7, 2022 /PRNewswire-PRWeb/ -- A report detailing market results for the second quarter of 2022 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-Julia B. Fee Sotheby's International Realty, the company announced today.
The report stated that the markets the firm serves continue to see heightened activity due to their proximity to New York City, despite media projections of a housing downturn nationally. Acknowledging that higher mortgage rates and inflation will negatively impact buyers' purchasing power, with other economic indicators mixed, the report indicated that the company's market areas benefit from an ongoing influx of city residents seeking relocation to the suburbs. The reasons consistently include greater flexibility to work remotely, the desirability of schools, buyers craving more space, the smaller population density in the suburban communities, and a rise in city crime.
Prices are still up, with the 12-month median sale price rising from the prior 12 months in every region. Behind these prices, increases are from the ongoing inventory shortage. With more buyers in the market than there are homes for sale, the balance between supply and demand is in the favor of sellers, who are able to realize higher sales in such a competitive environment, according to the report. The number of new listings coming to the market is down an average of 16.6% across all territories compared to this time last year, but the dollar volume of new listings is only down an average of 9.6%, which means listings are launching with higher asking prices.
Given the lack of available housing supply, closed sales decreased once again this quarter compared to the same period in 2021. The midpoint of 2022 finds Westchester County single family unit sales and dollar volume down by 17% and 10%, respectively, from the second quarter of 2021 to the second quarter this year, and 17% and 9% year to date versus the first six months of 2021. Fairfield County experienced a decrease of 27% in both unit sales and dollar volume for the quarter, 25% in unit sales, and 24% in dollar volume for the year. Moving up the Connecticut Shoreline, sales decreased in New Haven County by 19% in units and 8% in volume for the quarter, and 16% in units and 5% in volume year to date, while in Middlesex County sales dropped by 33% in units and 24% in volume for the quarter and 31% in units and 25% in volume for the year. In New London County, units decreased by 18% and volume by 12% for the quarter, while units dipped by 16% and volume by 10% year to date. Litchfield County saw unit sales fall behind the same quarter last year by 19% and dollar volume by 16%, while year to date units declined by 18% and volume by 14%. Hartford County's sales were down by 18% in units and 10% in volume quarter over quarter, and 14% in units and 8% in volume year over year. Berkshire County's unit sales were lower by 21% and 22% for the quarter and 13% and 10% for the year.
"While acknowledging the uncertainty in the world around us, we are overall cautiously optimistic that sales activity in our markets will continue ahead of historical norms in the months ahead," said Paul Breunich, Chairman and Chief Executive Officer of William Pitt-Julia B. Fee Sotheby's International Realty. "To be sure, diminished buyer demand nationally may be felt in our areas as well, but so far demand here is still high, even with fewer bidding wars. This is due to our unique proximity to New York and the steady demand flowing from the city to our suburban markets."
The 2022 Second Quarter Market Watch is available on the firm's website at williampitt.com.
About William Pitt - Julia B. Fee Sotheby's International Realty
Founded in 1949, William Pitt - Julia B. Fee Sotheby's International Realty manages a $7 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 79 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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