Our local market continues to adjust. As inflation concerns escalate, the federal government has continued to push interest rates higher in an attempt to stabilize the economy. These shifts have created a unique landscape for both buyers and sellers in the Hudson Valley.
The Interest Rate Hurdle
Mortgage rates have now exceeded 7%, with the potential for further increases looming. This has naturally led to a cooldown in buyer activity, as many individuals pause their search to reassess their purchasing power in this new high-rate environment.
The 20% Volume Drop
The impact on sales activity is clear when we look at the year-over-year data for residential properties sold in the first ten months:
-
2021: 706 residential properties sold.
-
2022: 566 residential properties sold.
This represents nearly a 20% drop in total sales transactions. However, while volume is falling, the median sales price continues to rise—a direct result of the limited inventory available for the buyers who remain active in the market.
Speed of Sale: 43 Days
Despite the broader economic headwinds, properties that are priced realistically are still moving incredibly fast. Thus far in 2022, the average time on the market is only 43 days. This suggests that while there are fewer buyers, the ones who are active are ready to move quickly on the right home.
The Seller’s Window
If you are thinking of selling, my advice is don’t hesitate. While the market is adjusting, demand remains high enough that we do not anticipate a drastic "crash" in the near future. The market is active, inventory is still relatively tight, and the "right" properties are still commanding premium attention.
Good luck to all our buyers and sellers navigating these changing tides!
