Why New York State Is Seeing ‘Significant Declines’ In Home Sales

Realtors believe they know why the region is seeing a huge decline in home sales.

The Hudson Gateway Association of Realtors (HGAR) just released its 3rd Quarter 2023 Real Estate Sales Report for the Bronx, Westchester, Putnam, Rockland, Orange and Sullivan Counties.

Real Estate Sales Report for the Bronx, Westchester, Putnam, Rockland, Orange and Sullivan Counties

Officials say there were a "significant decline" in home sales across the region.

The reason, according to the HGAR:

The combination of high-interest rates and low inventory dampened buyer demand and were the chief causes in significant declines in sales transactions during the third quarter of 2023 throughout the Hudson Gateway Association of Realtors (HGAR) market area, which includes Westchester, Rockland, Putnam, Orange, Sullivan and Bronx counties.

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Overall, for-sale residential inventory was down in all markets, with Sullivan County registering the smallest decline in inventory, officials say.

As compared to the third quarter of 2022 sales fell:

• 20.8% in Westchester County
• 33.8% in Putnam County
• 22.6% in Orange County
• 25.3% in Rockland County
• 26% in Sullivan County
• 23.7% in Bronx County

Sales through the first three quarters in 2023 also sharply declined as compared to the first three quarters in 2022.

• Westchester sales were down 25.9%
• Putnam sales were down 28.8%
• Orange County’s sales declined by 25.8%
• Rockland County sales were down 27.3%
• Sullivan County sales fell 28.1%
• Bronx County sales fell 22.2%

Median Sale For Home Prices

"While home prices have stabilized in some sections of the United States, the lack of inventory continues to put upward pressure on prices in the HGAR market area," the HGAR stated

Median sales increased by:

• 6.3% to $925,000 in Westchester County
• 1% in Putnam County to $510,000
• 7.1% in Orange County to $450,000
• 4.5% in Rockland County to $690,000
• 7.3% in Sullivan County to $299,500

The median sale price of a single-family home in the Bronx decreased by 2.8 percent to $612,500.

Hopeful For 2024

Officials expect interest rates to lower in 2024, which should prompt more homeowners to put their homes on the market for sale in the early part of next year, propping up inventory and purchase options for prospective homebuyers.

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"The prolonged high-interest rate environment has kept many possible home sellers on the sidelines. The 30-year fixed mortgage rate was at 7.67% for the week ended Oct. 6, according to the Mortgage Bankers Association—the highest level since 2000 and 40 basis points higher than a month ago," the HGAR added.