Our market areas entered the second quarter with a solid head of steam built on a solid finish to the fourth quarter of 2016 and a strong first quarter in 2017. While second quarter activity was not as robust as those earlier time horizons, the three-month range still reflected a positive trend, and there is little in the forecast that suggests the momentum the housing market has gained in the past year will derail.
For the year-to-date, the real estate markets are up in the communities we serve. The second quarter was down slightly compared to the same time last year, but overall, we remain in a healthy market. All the economic signs that affect real estate are holding steady or improving: Stock markets are climbing. Unemployment is dropping. Consumer confidence has remained steady, standing at 118.9 in June (1985=100) according to The Conference Board Consumer Confidence Index®. These are among the most important indicators to suggest the real estate picture should remain sound for the foreseeable future.
The figures show positive trends in all our regions. In Westchester County overall, sales for single family homes dipped about 1 percent compared to the second quarter of 2016, but are up 2 percent for the year versus the first six months of 2016. More significantly, dollar volume improved by 5 percent compared to the second quarter of 2016, and dollar volume year over year is up by 8 percent. Sales of homes in the $1-$4 million range in Southern Westchester were particularly encouraging, reflecting the willingness to purchase among buyers who have the resources to invest in real estate.
Fairfield County showed some positive trends as well. Unit sales for the quarter were 3% ahead of the same period in 2016, but again, dollar volume showed a nice 8 percent increase. Year over year, unit sales of single family homes and dollar volume are both up about 5 percent. That’s the kind of steady growth that analysts like to see in real estate.
Just like Westchester County, there also appeared to be some movement towards the sale of high end housing in Fairfield County. While there is still a significant amount of inventory, properties in the $3-$5 million range are starting to move a bit more quickly. Homes between $1-$2 million are also generating attention. Sales of units in Lower Fairfield County in that price sector grew by 20 percent compared to the second quarter of 2016, with a nearly 20 percent increase in dollar volume as well.
Connecticut’s Shoreline communities showed promising second quarter figures with a 7 percent increase in units sold compared to the second quarter last year, and a 9 percent increase in dollar volume. For the year, sales of single family homes have increased 4 percent on the coastline towns of Connecticut versus the first half of 2016, and volume 6 percent.
In Litchfield County in Connecticut and the Berkshires in Massachusetts, many homebuyers have taken advantage of the marketplace to purchase second homes. Litchfield County showed a 200 percent increase in homes sold between $2-$5 million in the second quarter versus the same time last year, which helped drive dollar volume up 8 percent quarter over quarter, while units increased by 2 percent. Single family home sales in the Berkshires were even compared to the second quarter last year, with a 1 percent increase in dollar volume.
While there may have been slight dips in units sold and dollar volume in individual towns, the big picture shows a healthy landscape and balance between buyers and sellers. Homes that are appropriately priced move quickly and value can be found in some higher end homes with substantially reduced prices. After several roller-coaster years, the real estate climate has settled into a steady state, the duration of which cannot be forecast. It is, however, the trend at this particular time.
I hope you find this report informative on what’s happening in your market, and invite you to contact one of our sales associates if we can help you with any of your own real estate needs. Be sure to check out the entire report here for further details.
Paul E. Breunich
President and Chief Executive Officer
William Pitt • Julia B. Fee Sotheby’s International Realty
