In 2021, the housing market continued to see the value of Hudson Valley homes increase. According to the Q4 Regional Housing Market Report, the median price of a home from 2020 to 2021 increased by almost $50,000 in the Hudson Valley.
According to Jeff Serouya, an Associate Real Estate Broker for Berkshire Hathaway Home Services, more luxury homes north of $1 million were also sold in 2021. Serouya’s 2021 sale of a historic riverfront home in the Hudson Valley surpassed $4 million.
All counties in the Hudson Valley also showed declines in supply during the fourth quarter. With fewer homes listed for sale at the end of last year, median sales prices rose. In turn, this leads to a strong seller’s market in 2022.
Based on the 2021 closing sales provided by the Mid-Hudson Multiple Listing Service, a buyer with under $400,000 in Dutchess County will find the most options in: Amenia, Dover, East Fishkill, the City and Town of Poughkeepsie, Pleasant Valley, Hyde Park, and Wappingers.
Many areas in the Hudson Valley enjoyed the increased sale of houses over the last year. Coming in first was the Town of Washington with an 22-percent increase in housing sales. Fishkill earned the runner up spot with a 21-percent increase in overall units sold. In addition, the Town of Poughkeepsie and Beacon saw an increase of 20 percent in units sold.
Settling into 2022, inflation continues to impact the housing market. Similarly, a demographic shift out of metropolitan areas during the pandemic contributes to the rise in price. At the Real Estate Forecast Summit, Dr. Lawrence Yun, a chief economist, suggested that the housing prices this year will continue to climb. However, they will do so at a much slower rate than in years past.
“All markets are seeing strong conditions, and home sales are the best they have been in 15 years,” says Dr. Yun. “The housing sector’s success will continue, but I don’t expect next year’s performance to exceed this year’s.”
According to Sandi Park, of Berkshire Hathaway Home Services, the spring market generally picks up in March. Once the warm weather begins in May and June, the selling market is in full swing.
In a monthly newsletter, The Brick, Park delivers news, market reports, and analytics. According to her February report, interest rates have risen a half point in four months, and inflation trends continue.
Over the past year, many buyers have been in the market longer than usual. This is due to the inventory shortage and increased demand. In some cases, buyers have been looking for a house for six months to a year.
Adobe Stock | Photo by Andy Dean
Since houses are selling quick, it’s important for buyers to be prepared when they are house hunting. It will be critical for buyers to have their financial components in order. This may include getting a mortgage or refinancing. Time is of the essence in the competitive spring and summer housing market.
“The longevity of this seller’s market is questionable, but, in the now, there appears a wave just ahead with a strong seller’s market continuing, Park says in the newsletter. “I would go so far as to say I’m anticipating a level of ‘intense’ gauging by the generous amount of hungry buyers currently in this housing deprived market.”
According to Redfin, in January 2022, Dutchess County home prices were up 9.2 percent compared to last year, selling for a median price of $390K. A total of 159 Dutchess County homes sold in January of this year. Additionally, most houses sold after only 45 days on the market.
With an influx of interested buyers from the city, Serouya is confident that the 2022 market will stay on an upward trend. In addition, Serouya noticed a migration of people from California who are used to more costly markets on the West Coast.
“It feels more like we’re entering a new phase of price growth rather than coming to the end of one that’s been with us for a decade,” Serouya says. “Compared to prices in competing markets, most notably the Hamptons, the Hudson Valley remains a relative bargain.”