Median Prices Continue to Rise According to Report by William Pitt Sotheby’s International Realty and Julia B. Fee Sotheby’s International Realty
Stamford, Conn. – July 6, 2022 – A report detailing market results for the first half 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 single family property sales continued to decline compared to the second half of 2022, while inventory remained scarce, effectively preventing sales growth. At the same time, a competitive buying environment resulting from a combination of low inventory and elevated consumer demand helped keep sale prices higher than this time last year.
Year to date, Westchester County, New York, unit sales and closed dollar volume are below last year by 30% and 32%, respectively, while in neighboring Fairfield County, Connecticut, unit sales are down by 31% and volume by 27%. On the Connecticut Shoreline, New Haven County’s year to date sales fell behind the same time last year by 25% in units and 23% in volume, Middlesex County’s sales are down by 22% in units and 18% in volume, and New London County’s sales are down by 21% in units and 23% in volume. In Hartford County, unit sales decreased by 28% and volume by 24% versus the first half of 2022, while Litchfield County saw units drop by 29% and dollar volume by 32%. In Berkshire County, Massachusetts, unit sales declined by 29% and dollar volume by 30% compared to this time last year.
Median sale prices on the other hand remain higher than the same time last year in most markets. Only Berkshire and Westchester Counties experienced small declines in their median prices since last year. In all other areas, the imbalance between supply and demand continues to yield an expected outcome: With far more buyers than there are available listings, multiple parties are competing for the same properties, thus sending prices upward.
The sales declines were expected upon observing the reduced number of properties going into contract during the last quarter, as fewer pending transactions indicates fewer closings in the next quarter. Throughout 2023’s second quarter contracts once again decreased compared to the same period in 2022. However, compared to the first quarter of this year, the pending sales declines of the second quarter were not as steep. The company reported that in consulting its own pending closings, decreases became comparatively smaller and smaller as the quarter progressed on a monthly basis. The month of June on its own was virtually flat in dollar volume on average across all territories compared to the same month last year, and down only 6% in units.
The company also noted that markets are heading into a time now where they will be compared to a timeframe in 2022 that experienced significant erosion from the year prior. The second half of last year saw notable declines versus the same six months in 2021. The company projected that during the second half of 2023, markets are likely to demonstrate improvement over the same time in 2022, both due to the weak performance of that period last year and due to the positive trend of properties going to contract according to its own company numbers.
“We believe that our geographic proximity to New York City gives us the unique benefit of an unusually high level of buyer demand that continuously flows from the city into our suburban markets,” said Paul Breunich, Chairman and Chief Executive Officer of William Pitt Sotheby’s International Realty and Julia B. Fee Sotheby’s International Realty. “Homeowners who have been considering selling their properties but waiting on the sidelines are encouraged to step into the market now while they can still realize maximum value for their properties due to the heightened buyer interest.”
The First Half 2023 Market Watch is available on the firm’s website at williampitt.com.
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.
Vice President, Public Relations and Communications