Sales of luxury homes, those priced at $2 million and higher in some market areas and $1 million and up in others, registered double- and triple-digit gains in the first quarter of the year, according to a report from real estate brokerage Houlihan Lawrence.
Compared with the first quarter of 2020, sales for the first quarter of this year were up by 233.3% in New Canaan, Connecticut, 82.2% in Westchester and 207.7% in Putnam and Dutchess.
When viewed in terms of sale prices, the picture was more of a mixed one with the median sale price in the $2 million and higher Westchester category being down by 4.4%. However, the prices rose by 36.6% in Putnam and Dutchess where the luxury end of the market begins at $1 million.
“One year ago, when the country was in a Covid-19 lockdown, it was hard to imagine that residential real estate would experience a V-shaped recovery fueled by seismic shifts in consumer behavior,” said Anthony P. Cutugno Sr., vice president and director of private brokerage at Houlihan Lawrence.
“A substantially larger buyer pool coupled with declining inventory has generated a consistent rise in luxury sales since last summer.”
Cutugno noted that the supply of luxury homes on the market is limited and many properties receive multiple offers.
“It is safe to assume that listings sitting on the market are being overlooked because buyers reject the price,” Cutugno said.
“Pricing matters, even in a supply-constrained environment. When the price is adjusted to align with market values, buyers respond positively.”
In Westchester, there were 82 luxury homes sold in the first quarter of 2021 compared with 45 in the same quarter last year. The median sale price was $2,629,997 compared with $2.75 million a year earlier.
In Putnam and Dutchess, there were 40 homes in the $1 million and up range sold in the first quarter of the year, compared with 15 in the first quarter of 2020. The median sale price this year was $1,602,615 compared with $1.2 million a year earlier.
In Greenwich, the number of luxury houses sold rose from 27 in the first quarter of 2020 to 70 in the first quarter this year. The median sale price went up from $3.65 million in the first quarter of 2020 to $3.97 million in the first quarter of this year.
In Darien, the number of houses sold rose from eight in the first quarter last year to 15 this year. The median sale price in Darien was down a hair from $2.67 million a year ago to $2.66 million this year.
In Westchester, the most luxury home sales took place in Scarsdale where 19 houses were sold with the top seller bringing $7.15 million. Rye City was next with 15 houses sold and a top price of $5 million and Mamaroneck was third with 10 sales and a top price of $2,956,555.
In Dutchess, both Rhinebeck and Washington saw properties selling for $7 million, with 12 luxury houses changing hands in Rhinebeck and four in Washington.
In Westport, Connecticut, there were 42 luxury home sales with a high price of $5.13 million while New Canaan had 30 sales and a top price of $4.59 million.
In a separate report, Houlihan Lawrence said that overall home sales in Darien, New Canaan and Rowayton increased 6.7%, 88.6% and 5.9%, respectively while the number of homes that were for sale at the end of March in Darien, New Canaan and Rowayton dropped 44%, 41%, and 64% compared with the end of March in 2020.
Liz Nunan, president and CEO of Houlihan Lawrence, said, “The number of showings has increased substantially year over year and, with so few homes for sale, it is not uncommon to have more than one buyer competing for a property. This competition leads to multiple bid situations, which inevitably lead to price increases and local sellers who price their homes properly benefit.”
