Luxury Markets Ended 2019 On Mixed Note In The Hudson Valley

RYE BROOK, NY — Luxury markets north of New York City, all distinctive and unique, ended the year on a mixed note, according to the Houlihan Lawrence Luxury Market Report released Jan. 7. In Westchester, Putnam and Dutchess counties, buyers showed a value-driven mentality at the high end and a conservative attitude towards real estate, company officials said.

The ultra-luxury segment of the market, $5 million and higher, was level with 2018, but a sharp drop in selling prices made 2019 look very different from 2018.

In 2018, David Rockefeller’s estate sold for 50 percent over asking price and closed at a record-setting $33 million. That same year five sales surpassed the $10 million price mark.

In contrast, in 2019 there were no sales over $10 million and the highest sale, originally offered at $12 million, closed at $8.1 million. Most ultra-luxury sales took one or more price reduction and sold on average 26 percent off the original list price.

Pricing, inventory levels and buyers' changing taste and attitudes played a role in how each area fared in 2019, the report said.

"2019 closed with another year of double-digit gains in the stock market," said Anthony Cutugno, Senior Vice President and Director of Private Brokerage for Houlihan Lawrence, "though rising portfolios did not translate into ebullient buyers."

In Westchester County, luxury sales of $2 million and higher dipped by 25 percent in the first half of 2018. Buyers returned to the market after tax returns were filed and the impact of tax reform on their personal balance sheet was clarified. Sales moved into positive territory in the third quarter and momentum continued to build in the fourth quarter. Second half gains offset most of first half declines and luxury sales in 2019 posted a modest decline.

Luxury sales of $1 million and higher declined in Putnam and Dutchess counties although pended sales in Putnam increased significantly - a hopeful sign for 2020.

"The new decade ushers in an election year which is likely to impact luxury sales in the second half as buyers wait to see what the next four years will bring," Cutugno said. "For sellers who are truly motivated to sell, now is the time to take an objective look at pricing and presentation, adjust as needed, and enter the spring market with a too-good-to-resist offering."

Sellers who listen to the market arrive at a realistic value that closes the gap between list price and selling price. Sellers may take a loss but their need to move on is stronger than their desire to achieve an unattainable number. "Unemployment, inflation and interest rates remain low and most economic indicators are strong," Cutugno said.