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With interest rates on the rise and our market’s continued inventory shortage, a lot of local buyers and sellers are asking themselves how current market conditions will affect their real estate goals.
In Q1 of this year, the North Salem Central School District experienced a 12.5% decrease in total number of sales and a 23.7% decrease in sales volume compared to Q1 2021, coinciding with Westchester County’s overall 17% decrease in total number of homes sold quarter over quarter. While historically this data could indicate declining activity, real estate agents with boots on the ground know that this is far from the case.
Buyer demand is as high as it has ever been, and most buyers find themselves competing aggressively for the few available homes. In certain areas of Westchester, it is not uncommon to see a home sell for 10% to even 20% or more above the initial asking price, and North Salem has experienced its own share of bidding wars in recent months. Westchester County's average single-family home sales price rose 9.9% quarter over quarter to a staggering $995,000.
While it’s true that now is an incredible time to sell your home - perhaps some of the most optimal conditions our town has seen in quite some time - there is still time for buyers to take advantage of investing at a time when rates are historically low. Interest rates have crept up into the 4s and 5s, but the lifestyle factors affecting buyers’ desire to purchase their first home, relocate to a quieter area, own their dream property, or downsize from a home that no longer suits their needs have not gone away.
With the spring blooms and warmer weather on the horizon, it is almost guaranteed that more and more sellers will be ready to put their homes on the market and North Salem continues to shine as one of the best places to live north of New York City. I predict Q2 will be a classic Westchester spring market bustling with activity as both buyers and sellers move to start anew in advance of the next school year.
Contact Jessica Broomhead at 214-497-8819 or Jessica.broomhead@compass.com for access to the detailed Westchester County Market Report by School District, or to prepare and strategize for the spring buying season.
Source: OneKey MLS, North Salem School District, Single Family 01/01/2021-3/31/2021 vs. 01/01/2022-3/31/2022 and COMPASS Q1 2022 Westchester Market Report.
