Low inventory combined with unprecedented ongoing buyer demand has created a climate of brisk activity yet reduced sales
STAMFORD, Conn., April 6, 2022 /PRNewswire-PRWeb/ -- A report detailing market results for the first quarter of 2022 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-Julia B. Fee Sotheby's International Realty, the company announced today.
The report stated that the first quarter proved a busy market period even as closings declined versus last year's first quarter, with historically low inventory combined with heightened buyer demand creating a climate of brisk activity yet reduced sales. As a result, properties new to the market are swift to enter contract after multiple offers, and they are realizing higher prices.
Although tighter inventory levels have led to decreased sales, the report found that certain segments of the market are performing better than others. In Fairfield and Westchester Counties, the upper end is demonstrating momentum, with closings over $1.7 million performing significantly better than those under that price point. The report provides a deeper analysis of this trend.
Overall, however, markets did decline from the first quarter last year. Fairfield County experienced decreases in dollar volume and unit sales by 22% and 24%, respectively, this quarter versus the same time in 2021, while Westchester County volume and units decreased by 9% and 17%. On the Connecticut Shoreline, New Haven County saw decreases of 3% in volume and 15% in units from the first quarter last year, Middlesex County saw dollar volume and units down by 26% and 29%, respectively, and New London County saw volume down by 7% and units by 12%. In Litchfield County, volume and units decreased by 14% and 20%, respectively, from last year's first quarter, and Hartford County volume decreased quarter over quarter by 5% and units by 10%. Only Berkshire County, Massachusetts, defied the trend, witnessing quarterly volume gains of 8% and units sliding a slight 2%. Prices rose in every county, with the 12-month median price increasing by 12% in Fairfield, 6% in Westchester, 13% in New Haven, 11% in Middlesex, 12% in New London, 7% in Litchfield, 10% in Hartford and 12% in the Berkshires.
A discussion of traditional economic indicators that normally gauge the health of real estate found these factors to be more mixed in the first quarter than they have been in some time, with some suggesting the possibility of a negative effect on consumer demand. In particular, the report acknowledged, inflation is a major national concern, and any impact it may have on housing remains to be seen. Yet ultimately the report concluded that current metrics still point to an active market in the months ahead.
"We expect the trend we are now observing—declining quarterly sales figures with limited inventory, rising prices and a highly competitive market for buyers—to continue in the next quarter and beyond," said Paul Breunich, Chairman and Chief Executive Officer of William Pitt-Julia B. Fee Sotheby's International Realty. "The intrinsic value of investing in and owning real estate has not changed, and for many it remains an integral part of their overall wealth strategy."
The 2022 First Quarter Market Watch is available on the firm's website at williampitt.com.
About William Pitt - Julia B. Fee Sotheby's International Realty
Founded in 1949, William Pitt - Julia B. Fee Sotheby's International Realty manages a $7 billion portfolio with more than 1,100 sales associates in 27 brokerages spanning Connecticut, Massachusetts, and Westchester County, New York. William Pitt - Julia B. Fee Sotheby's International Realty is one of the largest Sotheby's International Realty(R) affiliates globally and the 37th-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 1,000 offices throughout 79 countries and territories on six continents.
Media Contact
Andrew Wood, William Pitt Sotheby's International Realty, 203-644-1938, [email protected]
SOURCE William Pitt Sotheby's International Realty
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