2021 Hudson Valley Real Estate Market: Year in Review
Lower Hudson Valley
2021 Yearly Market Report
Happy New Year and here's to a great 2022 ahead of us. It's time for us to do a year in review on how the Hudson Valley fared in the real estate game during 2021, and I also have some new and exciting news on my end! I've officially launched my team, The Ally Team at J Philip Real Estate. Thanks to all of you that support me, I'm ready to take this next step in my real estate journey and am excited to see what follows. As typical in these reports, I'll first give you a year in review on my personal sales and then jump into
Tony's Year in Review
What I'll Be Covering In This Report
Westchester saw a great year, and even though it is showing the smallest one year growth in median sale prices, it's already a high priced county in the Hudson Valley, so seeing a constant growth of double digits each year would quickly make the county much more unaffordable than it already is for most. However, homes that are listed are selling quickly and for close to if not over asking price consistently. Additionally, a huge drop in available inventory compared to 2020, which already had a massive decline in inventory compared to the year prior. As long as inventory is low, prices will continue to rise.
Putnam County, Westchester County's younger sibling had a great year as well! Putnam is the second smallest county in the lower Hudson Valley, and can be quite competitive at times, offering lower prices and taxes than Westchester but still in commuting distance to NYC. So, the fact that it saw the second largest jump in sale prices is not surprising, especially with the second largest drop in available inventory. When a house is listed in Putnam, everyone wants to take a look.
Dutchess county is the average of all the other counties this year. Not the highest price increases, but not the lowest by any means (a 13% price increase is nothing to scoff at), and that holds true for the other statistics here too. It actually had the lowest drop in inventory, which means there are a good amount of homeowners putting their houses on the MLS here and taking advantage of the current seller's market. As the years progress and working from home becomes a reality for a lot of people, Dutchess is becoming more popular than ever for NYC commuters.
Let's all give Orange County a round of applause for having the largest year over year increase in median sales price for single family homes for a second year in a row!!! Go you, Orange County. AND an average of 100% original list price to sale price ratio? Orange County, girl, 2021 was your year. Did you see a huge (almost half) cut in available inventory? Yes. Did you let that stop you? No! With it's low taxes, affordable prices and becoming more of an option for WFH folks, Orange County, like Dutchess, is reaping in the benefits of this market.
Rockland County, the Lower Hudson Valley's smallest county, saw another year of insanely low inventory, but prices that continue to increase. While most NYC commuters don't want to cross the river, Rockland is still much closer and commutable than other northern counties in the Hudson Valley. And with a 99.8% original list price to sale price ratio, Rockland is doing just fine. Sellers in Rockland County can use the increase in home sales to offset the hike in tolls on the Tappan Zee Bridge (sorry, the name will never change no matter what they say!).
A general summary of how the Hudson Valley real estate market is doing is this: strong and steadying. There is just the slightest whisper of a stabilizing market in the lower Hudson Valley this year. Last year we were seeing multiple counties with median price increases of over 20%. This year, we are seeing lower numbers, with Westchester in the single digits. This is definitely a sign of stabilization starting to happen.
It is still VERY much a seller's market, no matter who you ask. Houses are selling at record speed, and for record prices with at or above asking price being the norm. Inventory is still at an all time low, with demand still high. Prices will continue to increase, but the percentage that they increase by each quarter and year should start to drop. There is no evidence showing that things will change in the near future with COVID-19 still running rampant, people are still looking to move to a place they can call their own.
Let's look at back on what I theorized during Q2 of 2021:
"My personal opinion (which I remind you, is just an opinion), is that in the coming months, prices will stabilize. Not drop, but stabilize. While inventory is also historically low, it is slowly increasing and over time will meet the demand."
I stand by those comments, and I think that things will continue to stabilize throughout the end of the year and into next year. Prices will continue to rise, but they will move back towards normal numbers, at least that's my opinion. So, let's see what happens. An undeniable fact though, is: WE NEED MORE HOMES ON THE MARKET! So, if you're a homeowner in the Hudson Valley and thinking of selling, now is a very good time to consider that.
New Team Launch!
You may have heard, but if not, I have even more exciting news (I know, right?) to share! I have officially formed The Ally Team at J Philip Real Estate, this year and am so excited to bring you all in on this new journey. This has been months in the making, but I have a new Administrative Assistant, Jenny Ogden, and am actively hiring agents to join the team. So, if you not only know anyone looking to buy or sell in the area, but if you also know anyone looking to become an agent themselves, I'm here to help. Thank you all for being so incredibly supportive over the years.
What is Your Home Worth?
After reading this, you might be thinking that the market is in great shape if you're a seller, and you would be completely right. Now is an amazing time to sell, due to the low inventory market that every county is experiencing. High demand and low supply creates competition and drives up prices. If you're curious about what you might be able to get for your home, hop on over to my website at RupertoRealEstate.com and fill out the valuation form to get a free, hand crafted report. The report wont be created by a computer, I do each request myself since I don't trust computers to accurately valuate your home, even though they will take over the world one day.
Thanks for listening,
Anthony@JPhilip.net | 914.494.0141
Licensed Real Estate Salesperson / J Philip Real Estate
522 N State Road, Suite 100,
Briarcliff Manor, NY 10510 United States