A report that reviews 2025 real estate sales in Westchester, Putnam, Columbia, Dutchess and Ulster Counties in New York and Fairfield, Litchfield and Hartford Counties in Connecticut as well as in the Massachusetts Berkshires indicates that on balance 2025 was good for residential real estate and 2026 likely see high demand continue.
The report by William Pitt-Julia B. Fee Sotheby’s International Realty found that inventories of houses for sale generally increased at least slightly during 2025 and likely will continue to inch ahead in many sections.
The company said that dollar volume for single-family home sales increased during the year in virtually every market it serves.
In Westchester, the median single-family selling price for the year was $1.1 million and there were 4,662 closed sales. The total dollar volume for the year was $6.1 billion. Unsold inventory at the end of the year stood at 426 houses.
In Fairfield, the median single-family home selling price in 2025 was $698,000. There were 6,563 houses sold during 2025 for a total volume of $9 billion. The inventory of unsold houses stood at 878.
The report said that one reason for the increasing inventory numbers is the downward direction of mortgage rates. Mortgages are a critical factor influencing buyer behavior but are just as critical for sellers, according to the report. The report said that one of the most significant reasons inventory levels are so low is that homeowners have been opting to sit on their historically low-rate mortgages, often under 4%, rather than move and face a higher rate for the mortgage on their next home.
The report forecasts that as mortgage rates ease, more homeowners will feel comfortable entering the market. While mortgages were near 8% in 2023, the average 30-year fixed rate has now dropped to its lowest point in three years, dipping to 6.15% by the end of the fourth quarter of 2025, according to Freddie Mac.
“Homeowners will continue to realize great value for their properties in 2026,” said Paul Breunich, chairman and CEO of William Pitt-Julia B. Fee Sotheby’s International Realty. “The demand and supply imbalance will remain weighted in the favor of sellers. At the same time, as inventory levels climb we will be able to accommodate more buyers, boosting unit sales. Even as more properties list for sale, however, we will still see a greater level of demand than supply, keeping competition for homes fierce and median sale prices as high as ever.”
Breunich pointed out that there are financial factors that could negatively impact the real estate markets. These include unemployment starting to rise and inflation ticking up a bit. He also noted that consumer confidence has gone down in recent months although Gross Domestic Product has continued to increase.
Breunich suggested that in 2026 the markets served by his company will perform differently from markets in other parts of the U.S., where home prices are expected to stay flat. He noted that Westchester, Fairfield and other suburbs benefit from the proximity to New York City and are expected to be among the most sought-after real estate markets in the country as 2026 unfolds.
