Q3 2024 Real Estate Market Report
The housing market in New York City’s northern and western suburbs showed signs of stabilization in the third quarter of 2024. After nearly three years of declining sales, transaction levels hit a bottom. Prices continued to rise, reflecting strong buyer demand, but inventory improvements suggest the market may be moving towards balance. Here are three key takeaways from the housing market in the third quarter:
- SALES HAVE STABILIZED.
After a prolonged decline that began in early 2022, sales have finally leveled off. Transaction volumes across the region were relatively flat compared to last year, ending nearly three years of downward trends. Sales were up by 1% in Westchester and the Hudson Valley, and a slight improvement was also seen in Fairfield. While other areas remained steady, the overall slowdown in declining sales indicates that the market may be finding its footing.
Despite the steadying trend, pending sales—a leading indicator of future closings—show mixed signals. However, the market’s current trajectory suggests that we may see a gradual increase in sales as inventory continues to rise.
- PRICES CONTINUE TO HIT HISTORIC HEIGHTS.
Despite stable sales, prices have not wavered. They continue to reach record highs across all regions, driven by consistent buyer demand and limited supply. For the quarter, prices increased across the board, with notable gains in Westchester/Hudson Valley (6%), Northern New Jersey (9%), and Fairfield County (6%). Even with interest rates still elevated, the strength of the economy and limited inventory have kept prices moving upwards.
Despite nearly three years of falling sales, these price gains demonstrate the market’s resilience. Economic strength and ongoing low supply mean that even moderate buyer demand can sustain significant price appreciation.
- INVENTORY IS STARTING TO RECOVER.
The tight inventory conditions that have shaped the market over the past few years are beginning to ease. Listings have increased throughout the region, continuing the trend observed earlier this year. For the third quarter, inventory levels were up 28% in Westchester and the Hudson Valley, 16% in Northern New Jersey, and 16% in Fairfield. We are now seeing inventory levels at around three months, moving closer to a balanced market level of six months.
Part of this inventory growth is due to increased new listings. For example, Northern New Jersey saw a 7% rise in new listings this quarter, helping to offset declines from earlier in the year. While more listings are still needed to achieve true market balance, the trend is encouraging, and we expect further improvements into 2025.
