Low Inventory and Elevated Buyer Demand Continue to Impact Housing Market According to Third Quarter 2023 Report

William Pitt Sotheby’s International Realty and Julia B. Fee Sotheby’s International Realty report finds glimmers that sales will improve according to company’s own data

Stamford, Conn. – October  4, 2022 A report detailing market results for the third quarter 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 stated that the key dynamics impacting housing have demonstrated little change as the year has progressed. The combination of historically low inventory and elevated buyer demand is driving a competitive buying landscape and sending new listings quickly into contract, leaving a scarcity of offerings to choose from and keeping median sale prices well above this time last year. At the same time, significantly higher mortgage rates are not only affecting buyers’ purchasing power but also influencing the decision process for potential sellers as they consider listing. The report provided an extensive analysis of the current and potential future effect of mortgage rates.

Year to date in Fairfield County, Connecticut, unit sales and closed dollar volume fell behind the first three quarters of last year by 28% and 20%, respectively, while in neighboring Westchester County, New York, unit sales and volume are both down by 25%. On the Connecticut Shoreline, New Haven County’s year to date sales fell behind the same time last year by 24% in units and 21% in volume, Middlesex County’s sales are down by 22% in units and 15% in volume, and New London County’s sales declined by 19% in units and 16% in volume. In Hartford County, unit sales decreased by 24% and volume by 18% versus the first three quarters of 2022, while Litchfield County saw units drop by 27% and dollar volume by 24%. In Berkshire County, Massachusetts, unit sales declined by 19% and dollar volume by 18% compared to this time last year.

Despite the inventory challenge, the report found glimmers that sales will improve according to the company’s own data. Per its own numbers, pending contracts in many markets are entering positive territory when compared to this time last year. Since June, pending contracts have trended up each month in dollar volume versus the same month the prior year, with August the only exception, and in September the uptick was the largest yet. As contracts serve as a leading indicator for future closings, the company predicted significant growth in closed dollar volume during the first quarter of 2024.

Twelve-month median sale prices at the end of the third quarter demonstrated growth versus the same time last year in all markets. Median prices rose in the counties of Fairfield by 6%, Westchester by 4%, New Haven by 5%, Middlesex by 6%, New London by 4%, Litchfield by 6%, Hartford by 8% and the Berkshires by 2%.

“Buyer demand continues to exceed the available supply of inventory in all our territories. That demand is largely emanating from New York City, a unique geographical factor for our markets that sets us apart from others across the nation,” said Paul Breunich, Chairman and Chief Executive Officer of William Pitt Sotheby’s International Realty and Julia B. Fee Sotheby’s International Realty. “The elevated demand means that sellers are still faced with an exceptional window of opportunity to list their properties and realize maximum value.”

The Third Quarter 2023 Market Watch is available on the firm’s website at williampitt.com.

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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.

Press Contact:

Andrew Wood

Vice President, Public Relations and Communications

[email protected]

(203) 644-1938

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Oct 04