Residential sales including single-family homes, condominiums, co-operatives and 2-4 family multi-family homes, decreased 6.3% in Westchester County, a 28.1% decrease in Putnam County, a 11.6% decrease in Rockland County, a 14.7% decrease in Orange County, and a 19.8% decrease in Sullivan County for Q1 in 2022.
The first quarter was still significantly higher than two years ago and only signals the slowing of historic increases in price appreciation and transaction volume. Slowing doesn’t mean recession….yet. Wall Street Journal economists put the probability of a recession sometime in the next 12 months at 28%, up from 18% in January and just 13% a year ago. The Labor Department recently said the Consumer Price Index—which measures what consumers pay for goods and services—in March rose to 8.5%, the fastest annual pace since December 1981.
NAR Chief Economist Lawrence Yun weighed in on the national market. “Mortgages now compared to just a few months ago are costing more money for home buyers,” he said. “For a median-priced home, the price difference is $300 to $400 more per month, which is a hefty toll for a working family.”
NAR calculates purchasing a home is now 55% more expensive than a year ago. These rising mortgage rates and prices hurt affordability, and although wages are improving, Yun says they are “wiped away” due to inflation. “Wages have risen by 6% from one year ago and that's good news,” he continued. “But inflation is at 8.5%.”
Whatever the future holds, buyers and sellers are still maintaining a frantic pace. Covid fears are easing even if the pandemic is becoming an endemic. As we close out the Spring headed towards summer, Hudson Valley Real Estate remains strong… for now. If you need help buying or selling…AskHollingsworth.