SULLIVAN COUNTY – Although single-family home sales in Sullivan County dipped 20 percent during the fourth quarter of 2021 – attributed mostly to shrinking inventory – the number of …
SULLIVAN COUNTY – Although single-family home sales in Sullivan County dipped 20 percent during the fourth quarter of 2021 – attributed mostly to shrinking inventory – the number of sales for the year hit a historic high of 1,328, eclipsing 2020 by 91 homes, or 7.4 percent.
The figures, released last week by Hudson Gateway Association of Realtors, reported sales and prices for real estate sales in a six-county region, which includes all the Mid-Hudson and Bronx County.
“Arguably, some of the slowdown can be attributed to the dearth of inventory in the counties north of New York City,” the report said.
In Sullivan County, end-of-year inventory stood at 390 single-family homes, the lowest number in the past four years.
In 2020, there were 459 homes in inventory at year end, while 2019 had 711 homes in inventory and 2018 had 812.
The largest percentage price increase for single-family homes in the six-county region was in Sullivan County, which saw a 25.3 percent increase – to $244,400 from $195,000 in 2020.
According to the report, Westchester County, which has the highest price real estate in the region, actually had the smallest percentage increase in single-family home prices, at just 6.1 percent – from $735,000 to $780,000.
“This may be indicative of price increases beginning to moderate,” the report stated.
The report concludes, “In terms of percentages, condominium, multi-family (2-4 family), and in Westchester County, co-op sales as well, all outpaced the increases in single-family units and, in most instances, percent of median price increase.
“When focusing solely on the 4th quarter residential sales numbers, they reflect a return to the more typical seasonality in the market, which disappeared in the fourth quarter of 2021.
“While there were significant decreases in the number of residential sales in all counties, except the Bronx – when comparing 2021 4th quarter to 2020 4th quarter sales – it is important to remember that the 4th quarter 2020 sales were fueled by a surge in buying activity in the second half of 2020 once Covid restrictions were lifted.
“A more realistic comparison would be to the 4th quarters of 2019 and 2018, and the 2021 4th quarter residential sales numbers were significantly higher than either of those two years,” the report continues.
“Indicators such as days on market were down significantly in all market areas.
“Homes were selling close to or at list price and above list price as a relatively common event. Lack of inventory continues to be a problem with no meaningful resolution on the near horizon.
“With the Fed tightening monetary policy it is expected that mortgage rates will begin a steady rise in 2022. However, despite these headwinds, the real estate market in the New York City and greater suburban area, including the lower Hudson River Valley, have shown remarkable resiliency in the last year-and-a-half, and we expect a strong real estate market to continue into 2022.
With the exception of the second quarter of 2020, the real estate market has been an anomaly, outperforming the economy.
“Sales and prices have enjoyed a trajectory which is likely unsustainable going forward, however the economy of the Hudson Valley continues to improve and grow more vibrant which bodes well for real estate.
“It is likely that price increases will moderate and additional product will come on the market which will sustain a strong market in the near term,” the report stated.
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