William Pitt – Julia B. Fee Sotheby’s International Realty reported today that the ongoing inventory shortage continued to impact New York suburban residential real estate markets in April, resulting in decreased sales compared to the same month last year. Yet buyer demand remained elevated as New York City residents continue to seek suburban housing in historically high numbers. The company also noted that the timeframe of comparison, April 2021, was a period of record sales, surging over a month in 2020 when real estate activity was severely limited due to shutdowns at the onset of the pandemic.
Both new listings taken and overall inventory decreased at high levels compared to April 2021 in most markets.
In Fairfield County, Conn., unit sales and closed dollar volume declined in April versus the same month last year by 24% and 23%, respectively, continuing the trend that started in June of 2021 when sales began to compete with a timeframe of unprecedented growth the prior year. Overall inventory was down 36% compared to April last year while new listings for the month decreased by 29%.
In Westchester County, N.Y., unit sales and closed volume decreased by 21% and 12%, respectively, from April last year. The noteworthy spread between the percentage changes in unit sales and dollar volume, witnessed in some other markets as well, indicates that more properties are transacting at higher price points. As in Fairfield County, limited inventory greatly impacted the market, with overall inventory down by 31% compared to April 2021 and new listings down by 25%.
Other markets served by the company witnessed the same trends. The Shoreline region of Connecticut, comprising New Haven County, New London County and Middlesex County, each saw declines in unit sales and volume versus last February’s record month. The story was similar in Litchfield and Hartford Counties. Only the Berkshires, Mass., defied the trend. As in January, the region demonstrated month over month sales growth in February 2021. All markets are significantly challenged by reduced inventory.
Please see the accompany charts for a full review of the data for all market areas, comparing April 2022 to both April 2021 and April 2020, sourced from various MLSs.
“We expect the market trends we are seeing now—declining sales, low inventory, increasing prices and a highly competitive market for buyers—to persist throughout the second quarter of 2022 and beyond,” said Paul Breunich, Chairman and Chief Executive Officer of William Pitt – Julia B. Fee Sotheby’s International Realty. “At the same time, buyer demand across our markets, largely emanating from New York City, remains as strong as ever.”