rd Quarter Luxury Market Report

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1 rd Quarter Luxury Market Report

2 Presented By JOAN O'MEARA Associate Real Estate Broker Rye Brokerage Mobile: Office: Ext. 300 Fax: HOULIHANLAWRENCE.COM

3 EXECUTIVE SUMMARY THIRD QUARTER Recent third quarter data indicates that Westchester County is poised to reach a 10-year high of homes sold by year-end, with Putnam and Dutchess counties not far behind. This is great news if you are selling a home under $2M in Westchester, because limited inventory and enthusiastic buyers in the under $2M market have driven this year s growth. Our report, which focuses on luxury sales activity in Westchester County ($2M or more); Greenwich ($3M or more); Putnam and Dutchess ($1M or more) takes a closer look at differences between our luxury and non-luxury markets. In Westchester, the luxury market began the year sturdily, with balanced inventory levels and high buyer motivation. By early summer, buyer interest began to wane, while inventory increased throughout the summer and early fall. At the end of the third quarter, luxury inventory had grown 28 compared to last year, leaving Westchester County with the highest number of luxury homes for sale on record. The luxury market now favors buyers, who currently exhibit no urgency. Southern Westchester, where the majority of luxury inventory is accumulating, has benefited from a trend we observe among a new generation of affluent buyers: a desire for communities with bustling downtown areas, proximity to NYC and Metro-North stops. Towns like Scarsdale and Rye become a version of the smaller footprint they prefer - walking to town for a cup of coffee is just as important as a warming drawer and wine cellar. In Northern Westchester, where impressive homes are sited on larger parcels, often with pool, tennis court and added amenities, buyers for the moment seem to be apprehensive of taking on the management and maintenance of a home that will consume their limited time and competing interests. They are tapped out with demanding dual careers, busy children, and maintaining fulfilling relationships. With more resources than most, these affluent buyers control their work/life calendars with Swisswatch precision and are hesitant to add another responsibility to their time-depleted lifestyle. While the work/life balance is not new, we find it is contributing to declines in Northern Westchester s luxury real estate market: year-to-date the number of luxury homes sold homes decreased 41, dollar volume dropped by a dramatic 54 and pending sales are at a 10-year low. The smaller footprint trend is appearing in our other luxury markets. In Greenwich, the majority of luxury sales ($3M+) are located south of the Merritt Parkway, where proximity to Greenwich Avenue, restaurants, shopping and Metro-North outnumber sales in Riverside, Cos Cob and Old Greenwich by a margin of three to one. Further north, in Putnam and Dutchess, the luxury market is strengthening and the second home buyers are back in the market. Like fashion, trends in luxury real estate begin imperceptibly until they become glaringly obvious. Trends move faster in both fashion and real estate, accelerated by modern technology and social media, and we look at current market conditions with both caution and optimism. Just as Ralph Lauren s Black Label military look gave way to this fall s modern minimalism collection, so too do the trends in luxury real estate change. Buyer s taste and lifestyle preference can be a moving target. Our proximity to New York City, our eclectic communities, our varied and magnificent housing stock remain constant and keep our luxury real estate relevant and desirable to affluent buyers everywhere. Sincerely, Anthony Cutugno Senior Vice President Director of Private Brokerage

4 LUXURY MARKET REPORT 3 rd QUARTER In Westchester County, the median sale price of luxury homes increased as the number of homes sold declined in and year-to-date Greenwich sold 26 more homes in, contributing to an uptick in homes sold year-to-date Luxury dollar volume increased by a whopping 121 in Putnam and Dutchess counties, and the median sale price rose 50 in WESTCHESTER COUNTY LUXURY HOME $2M AND HIGHER HOMES SOLD TOTAL DOLLAR VOLUME $392,315,603 $436,118, $811,023,641 $841,709, MEDIAN SALE PRICE $2,572,051 $2,529, $2,675,000 $2,600, AVERAGE PRICE PER SQUARE FOOT $577 $ $580 $ AVERAGE DAYS ON MARKET SALE PRICE TO LIST PRICE GREENWICH, CT LUXURY HOME $3M AND HIGHER UNITS SOLD TOTAL DOLLAR VOLUME $260,742,206 $229,525, $664,315,993 $775,866, MEDIAN SALE PRICE $4,225,000 $4,600, $4,205,500 $4,150, AVERAGE PRICE PER SQUARE FOOT $708 $ $734 $ AVERAGE DAYS ON MARKET SALE PRICE TO LIST PRICE PUTNAM AND DUTCHESS COUNTY LUXURY HOME $1M AND HIGHER HOMES SOLD TOTAL DOLLAR VOLUME $17,646,200 $7,962, $47,800,700 $39,280, MEDIAN SALE PRICE $1,800,000 $1,200, $1,550,000 $1,337, AVERAGE PRICE PER SQUARE FOOT $561 $ $439 $ AVERAGE DAYS ON MARKET SALE PRICE TO LIST PRICE Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service.

5 Test LUXURY MARKET REPORT 3 rd QUARTER In Westchester County, the higher end of the luxury market ($5M to $9.9M) outperformed the $2M to $4.9M price range in percent gains in both and year-to-date. Three $10M+ sales closed last year; however the $10M+ price mark has yet to be achieved in The $4M to $9.9M price band in Greenwich increased 40 year-to-date, as the ultra-luxury ($10M+) market lagged Putnam and Dutchess realized gains in, and the number of homes sold $1M to $1.9M grew by 23 WESTCHESTER COUNTY LUXURY HOME $2,000,000 - $2,999, $3,000,000 - $4,999, $5,000,000 - $9,999, $10,000,000 and up GREENWICH, CT LUXURY HOME $3,000,000 - $3,999, $4,000,000 - $4,999, $5,000,000 - $9,999, $10,000,000 and up PUTNAM AND DUTCHESS COUNTY LUXURY HOME $1,000,000 - $1,999, $2,000,000 and up Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service

6 LUXURY MARKET REPORT 3 rd QUARTER TOP LUXURY MARKETS Scarsdale topped the list with 30 luxury sales in. The highest sale this quarter was located in Bronxville, followed by a $7.9M waterfront sale in Rye Greater Greenwich led the luxury market with 39 sales, substantially more than Old Greenwich, Riverside and Cos Cob combined. This quarter s highest sale of $14,900,000 is also the third highest sale of the year in Greenwich In Putnam and Dutchess counties, the highest sale in was located in North East, while Haldane and Garrison both closed two luxury transactions WESTCHESTER COUNTY LUXURY HOME $2M AND HIGHER SCHOOL DISTRICT # OF MEDIAN LUXURY SALE PRICE HIGHEST SALE PRICE SCARSDALE 30 $2,330,000 $5,500,000 RYE CITY 22 $3,275,000 $7,900,000 MAMARONECK 17 $2,500,000 $4,700,000 BRONXVILLE 13 $2,490,000 $8,500,000 HARRISON 11 $2,628,000 $3,750,000 GREENWICH, CT LUXURY HOME $3M AND HIGHER TOWN/CITY # OF MEDIAN LUXURY SALE PRICE HIGHEST SALE PRICE GREENWICH 39 $4,700,000 $14,900,000 OLD GREENWICH 6 $3,850,000 $5,537,500 RIVERSIDE 5 $3,325,000 $3,500,000 COS COB 2 $3,250,000 $3,300,000 PUTNAM AND DUTCHESS COUNTY LUXURY HOME $1M AND HIGHER SCHOOL DISTRICT/CITY/TOWN # OF MEDIAN LUXURY SALE PRICE HIGHEST SALE PRICE HALDANE 2 $1,437,500 $1,800,000 GARRISON 2 $1,461,600 $1,800,000 MAHOPAC 1 $2,700,000 $2,700,000 CARMEL 1 $1,550,000 $1,550,000 RHINEBECK 1 $1,298,000 $1,298,000 MILAN 1 $2,400,000 $2,400,000 NORTH EAST 1 $3,900,000 $3,900,000 Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service

7 SNAPSHOT LUXURY MARKET REPORT 3 rd QUARTER SOUTHERN WESTCHESTER COUNTY LUXURY HOME $2M AND HIGHER PRICE RANGE AS OF SEPTEMBER 30, AS OF SEPTEMBER 30, vs. : : IN IN S $2,000,000 - $2,999, $3,000,000 - $4,999, $5,000,000 - $9,999, $10,000,000 and up NORTHERN WESTCHESTER COUNTY LUXURY HOME $2M AND HIGHER PRICE RANGE AS OF SEPTEMBER 30, AS OF SEPTEMBER 30, vs. : : IN IN S $2,000,000 - $2,999, $3,000,000 - $4,999, $5,000,000 - $9,999, Not Valid 26 0 Not Valid $10,000,000 and up 9 0 Not Valid 11 0 Not Valid GREENWICH, CT LUXURY HOME $3M AND HIGHER PRICE RANGE AS OF SEPTEMBER 30, AS OF SEPTEMBER 30, vs. : : IN IN S $3,000,000 - $3,999, $4,000,000 - $4,999, $5,000,000 - $9,999, $10,000,000 and up PUTNAM COUNTY LUXURY HOME $1M AND HIGHER PRICE RANGE AS OF SEPTEMBER 30, AS OF SEPTEMBER 30, vs. : : IN IN S $1,000,000 - $1,999, $2,000,000 and up DUTCHESS COUNTY LUXURY HOME $1 AND HIGHER PRICE RANGE AS OF SEPTEMBER 30, AS OF SEPTEMBER 30, vs. : : IN IN S $1,000,000 - $1,999, $2,000,000 and up *Supply Demand Ratio Key 1-4: High Demand 5-6: Balanced 7-9: Low Demand 10+: Very Low Demand Source: Hudson Gateway Multiple Listing Service, Mid-Hudson Multiple Listing Service and Greenwich Multiple Listing Service.

8 LUXURY MARKET REPORT 3 rd QUARTER TEN-YEAR MARKET HISTORY WESTCHESTER COUNTY LUXURY HOME $2M AND HIGHER GREENWICH, CT LUXURY HOME $3M AND HIGHER Source: Hudson Gateway, Mid-Hudson and Greenwich Multiple Listing Service. * homes sold are annualized based on actual sales year-to-date.

9 LUXURY MARKET REPORT 3 rd QUARTER TEN-YEAR MARKET HISTORY PUTNAM COUNTY LUXURY HOME $1M AND HIGHER DUTCHESS COUNTY LUXURY HOME $1 AND HIGHER Source: Hudson Gateway, Mid-Hudson and Greenwich Multiple Listing Service. * homes sold are annualized based on actual sales year-to-date.

10 OUR COMMUNITY PARTNERSHIPS Our overriding philosophy is that our company's success is intertwined with the greater health of the communities we call home. Houlihan Lawrence is committed to supporting local organizations that help improve the quality of life for our neighbors who live in New York City's northern suburbs. Our principals and agents serve on multiple non-profit boards, and our agent community rallies around fundraisers and volunteer opportunities. JOIN US BY SPONSORING A PARTICIPATING AGENT OR WALK WITH US IN ONE OF THIS YEAR S FUND-RAISING EVENTS SUPPORT CONNECTION Support-a-Walk Breast and Ovarian Cancer supportconnection.org FDR State Park, Yorktown Heights, NY October 4, AMERICAN CANCER SOCIETY Making Strides Against Breast Cancer makingstrideswalk.org Manhattanville College, Purchase, NY October 18, MILES OF HOPE Breast Cancer Foundation Walk milesofhope.org James Baird State Park, Pleasant Valley, NY October 4, LIGHT THE NIGHT Leukemia & Lymphoma Society lightthenight.org Vassar College, Ballantine Field, Poughkeepsie, NY October 17, Playland Amusement Park, Rye, NY November 7,

11 OFFICIAL HONOREE FOR Hailed as the Internet s highest honor, the award is considered The Oscars of the Internet. THE BEST OF THE INTERNET REAL ESTATE WEBSITES Judged by the International Academy of Digital Arts and Sciences, composed of 1,000 industry experts and technology innovators. We are the only residential real estate brokerage in the world to be honored with this premiere international achievement for ground-breaking web design. HOULIHANLAWRENCE.COM

12 HOULIHAN LAWRENCE PRIVATE BROKERAGE Designed expressly for our region's most exceptional properties, Houlihan Lawrence Private Brokerage offers discreet advisory and brokerage services to our valued luxury clients. Since its inception in 1990, our exclusive luxury program directed by Senior Vice President, Anthony P. Cutugno has earned a reputation for personalized boutique-style service and nuanced marketing that best serves the interests of our clientele. Known for our prudence and reliability, Houlihan Lawrence has worked with many of the area's most prominent families, charitable trusts, banks and estate trustees in facilitating the sale of the region's most prestigious properties. Based on the private banking model, Tony is personally involved in every transaction offering invaluable insight and advice honed by decades of experience in international trade and luxury real estate. What sets Private Brokerage apart is our ability to leverage Houlihan Lawrence's vast resources and impressive global partners to successfully position a property within the international marketplace. With a reach that extends to 6 continents, Houlihan Lawrence Private Brokerage understands the world of luxury and has cultivated relationships with international partners and high net-worth clients across the globe. These world-class connections supported by the personal oversight of Tony and his Private Brokerage team create a powerful combination that drives results year-after-year HOULIHANLAWRENCE.COM