Despite market headwinds, luxury real estate sales continue to fight the current in 2023, according to a new report from Houlihan Lawrence.
According to Houlihan Lawrence’s 2023 Luxury Market Report, the number of sales over $10M in Westchester County and Greenwich were close to all-time highs in 2023. Uber-luxury buyers and sellers had the wind at their back, possessing multiple real estate holdings flexed their spending power as they pursued a well-diversified investment portfolio.
The report also found that for buyers, lack of inventory created competition. Luxury homes (on average) sold for close to 100% of list price. Though days on market ticked up slightly in 2023, listings sitting on the market over 100 days are often overlooked by buyers due to price and/or presentation. Conversely, a change in price or staging often transformed a languishing listing into a desirable offering.
Key highlights:
Westchester County luxury home sales ($2M+)
Homes sold: -26.7%
Median sale price: +0.9%
Q4 highest sale price: $10,000,000 (Bedford)
Putnam and Dutchess County ($1M+)
Homes sold: -39.1%
Median sale price: -3.9%
Putnam Q4 highest sale price: $1,750,000 (Haldane)
Dutchess Q4 highest sale price: $2,700,000 (Washington)
Greenwich, Connecticut ($3M+)
Homes Sold: -15.2%
Median Sale Price: +6.5%
Q4 Highest Sale Price: $11,000,000
Darien, Connecticut ($2M+)
Homes sold: +7.3%
Median sale price: -5.8%
Q4 highest sale price: $6,500,000
New Canaan, Connecticut ($2M+)
Homes sold: -14.5%
Median sale price: +0.4%
Q4 highest sale price: $7,550,000
Major takeaway:
The report noted that interest rate cuts projected in mid-2024 will prompt more sellers to enter the market and help alleviate the inventory shortage.
“There has been a growing interest in sustainability for luxury real estate buyers. Energy efficient homes that monitor energy usage and reduce carbon footprint is one path to sustainability. Preservation is another trend of younger, eco-conscious luxury buyers purchasing period homes with the belief that the greenest home is one that is already built,” said Anthony P. Cutugno, senior vice president of Private Brokerage. “Homes built before 1940 tend to be inherently environmentally sustainable, and though updates are often needed, keeping an existing structure intact is the ultimate recycling project for this group of buyers,” he added.
Cutugno said all eyes are on this year’s presidential election, and the impact it will have on the economy and the global landscape. “We are hopeful that the expectation of lower interest rates in the second half will help improve the trajectory of luxury real estate north of NYC.”
For more information, visit https://www.houlihanlawrence.com.
