At the end of the year, we can’t help but reflect on the year as a whole. 2021 continued to be a record-breaking year in Real Estate, not just in the markets we serve but also nationally. The series of events that led up to the year created an unparalleled formula that propelled our industry to new heights.
As the market leader North of NYC, Houlihan Lawrence is armed with the best-in-class data providing our elite agents with hyperlocal insights shaping our markets. Read on for our 2021 year end market reports, providing proprietary data-driven insights specific to the communities we serve in New York and Connecticut.
While the first half of 2021 varied in specific metrics to the second half, two factors remained constant. The inventory was at an all-time low, and buyer demand was exceptionally strong. As the year progressed, the sales outpaced inventory replacement, and this further restriction led to a decline in pending sales and, eventually, closed sales.
The demand for all property types and prices remained high, further fueling the seller’s market. As a result, the median price continued to increase in Q4.
Luxury markets north of New York City posted record gains in 2021 for the second consecutive year, with double-digit increases in Westchester County (sales $2M and higher); Putnam & Dutchess Counties (sales $1M and higher); Greenwich, CT (sales $3M and higher); and Darien, Rowayton and New Canaan (sales $2M and higher).
During the past two years, the real estate buzz has been all about buyers – their sheer number and why and where they are moving. This year, the conversation focuses more on supply. The market is hungry for new inventory, and sellers hold the key to the strength of the luxury real estate market in 2022.
The new year started with just 160 homes for sale in Greenwich, Connecticut, leaving buyers anxiously seeking and waiting for new inventory to go on the market. This limited supply and high demand dynamic was a theme for 2021 that seemed to get tighter in the fourth quarter.
Home sales rose 16.5% in 2021, but we saw sales decline nearly 40% in the fourth quarter. This decline was due primarily to the low inventory of homes for sale and a buyer fear of overpaying as prices rose along with New York City-based buyers giving the city another chance in a [hopefully] post-COVID19 world.
During the fourth quarter, home sales in Darien, New Canaan, and Rowayton continued to reflect the same trends as experienced throughout 2021. Prices continued to increase, inventory hit an all-time low, and homes often sold at or over list price with an extremely short time on the market.
The robust gains experienced in 2021 will likely taper off as we look ahead to 2022. As the supply of homes has declined to historic lows, the velocity of closed sales has also cooled down. Pent-up buyer demand and low inventory levels will continue to increase home prices and fuel a competitive seller’s market next year.