What a ride we have been on from 2019-2024! It took us ten years from the recession to rebuild to a normalized market in the Hudson Valley. By 2015-2019 inventory had evened out where supply and demand were roughly in equal supply, but in a non-transient area some properties continued to sell relatively quickly (under 6 months) while luxury real estate continued to take a year or more to sell.
Then the pandemic hit and real estate was turned on its head. Within three months, nearly all of our existing inventory sold, often sight unseen. As prices and demand rose, many property owners decided that it was the right time to move and inventory rose to match demand, but multiple offers and over-ask selling prices still prevailed. During the height of the pandemic (June of 2020 – June 2021) average sales price was $508K with 83 days on market with a total of 866 sales. A year later (June 2021-June 2022) only 654 properties sold, but half of those sold in less than 30 days.
By September of 2023, we finally hit a normalized market again, and we have returned to essentially the same normalized market we had from 2015-2019 – with the exception that both inventory and buyer activity are down. 279 active listings today with an average of 91 days on market and an average price of just a bit above $1.1M. Remember, listings will always have higher average prices than sales.
What does this mean to you as a prospective investor, buyer or seller? Just like every market, real estate is cyclical. Excepting some unknown catastrophic event, our economy looks to be slowing down with a reciprocal reduction in real estate prices, but more importantly, a concurrent lower cost of construction and greater availability of tradesmen and contractors. If you have been waiting to invest in Hudson Valley property, the window is opening and this is the time to prepare to buy. If you are an investor looking to own for a short time, improve and sell, your costs to both buy and renovate will not have been this low since 2019. If you are looking to sell, this is the time to position your property perfectly for the ideal buyer. Knowing that a wide net, with a specific goal, can achieve you the greatest return is important when deciding how to position your property. If you are looking to buy a long term home for your family and friends to enjoy, this is the time to look for a property that has the ideal immutable attributes – land and location – and realize that investing in the renovation to make it your own is a long term investment at an ideal time for a cost effective investment.
I will be keeping you updated as this market changes. If you want to know how it affects your goal, call me for a personal consultation.
Just an added reminder, I am licensed in New York and Virginia and welcome your referrals in either state.
