With the fall market in full swing, Houlihan Lawrence took a close look at the luxury market ($2M+, Single Family Homes) in Area 5.
As of September 20th, HL remains the luxury market leader in Area 5.
- HL has sold 45% of all luxury homes – a 4 point gain over last year
- HL has participated in 6 out of every 10 luxury sales
- HL’s dollar volume has increased at the same pace as the market, while its nearest competitor has lagged the market with a gain of just 12%
Area 5/The Sound Shore luxury stats:
- Dollar volume has increased by 22%
- Luxury homes sold are up nearly 11%
- $5M+ sales YTD doubled to 14 this year vs. 7 same period last year
- Rye is leading the pack with seven of the $5M+ luxury sales
The $10M threshold has yet to be reached in the Sound Shore or all of Westchester County this year. The highest sale so far is $9M – an 18,000 SF new construction home in Tarrytown. Countywide, six sales in the $8M range have closed this year and three are located in the Sound Shore (54 Island Drive, Rye; 32 Lincoln Lane, Harrison; and 23 Shore Drive, Port Chester). Last year’s highest sale was $27,500,000 (a Conyer’s Farm property).
Most significantly, luxury inventory is coming to market at a faster pace than it is being absorbed. As of September 20th, there have been 114 sales in the category, a 10% increase over last year, and also a ten-year high. Concurrently, there are 182 – $2M+ properties for sale – a 10-year high watermark for inventory on the Sound Shore, and 30% increase over last year.
It is interesting to note that Sound Shore ultra-luxury ($5M+) closed sales are quite healthy – 14 sales as of September 20, up over year ago, and tied with 2013 for the highest number of $5M+ sales. What has changed so dramatically is supply levels. Ultra-luxury inventory levels are at a near 10-year high with 41 active listings. With just three pending sales, there is currently low demand in this segment. In 2013 when we last had 14 – $5M+ sales, there were just 26 active listings.
The median sale price of the ultra-luxury segment has increased from $6,047,500 in 2013 to $6,753,750 this year – which has led to an influx of listings as sellers perceive the market to be improving. However, demand has not kept pace with supply, creating a glut that represents several years’ worth of luxury inventory to be absorbed.
With so much to choose from, each listing is getting fewer, if any, showings; buyers are more particular because they have a wider selection and no sense of urgency. Additionally, buyers see new listings come to market at a rapid pace, which has diminished their appetite as they anticipate a correction in the market.
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The O'Meara Perspective 