Suburban Real Estate 2022 Year End Review

Suburban News

Y E A R   E N D   R E V I E W  2 0 2 2
J A N U A R Y   2 0 2 3
by Kori Sassower

Welcome to the 2022 Year End Review and January 2023 Edition of the Suburban News

The end of a year and the dawn of a new one. In this roller coaster world where the highs and lows seem to become more extreme each day, and the only certainty we speak to is the certainty of change. Markets rise and fall. They always have and always will. They also almost always recover. And mostly they surpass their prior high's. The only unknown about recovery is the timing. 

Economists think that a recession is likely, but a few are holding out hope that the Fed can achieve a so-called “soft landing,” where it brings inflation down to normal levels without causing the economy to shrink. Recent months have brought cautiously hopeful news: Annual inflation has cooled from a peak of 9.1% to 7.1%, so rate hikes are expected to be much less aggressive next year. Homes are not that different to most other assets: their pricing is almost always defined by supply and demand. When the demand side has less capital and less confidence, and when the supply side increases, even slightly, pricing usually adjusts too. In Westchester County 2022 vs, 2021 single family homes sold at $1m or more saw 7.8% less homes sold with a 3.6% higher median price.

Although the activity in the housing market has slowed to a crawl this winter, the stage is set for a spring thaw. Buyers can count on the usual springtime flood of new listings, and less frenzied competition than the last two spring selling seasons in the New Year.

Critics of the Federal Reserve’s aggressive strategy have said the central bank risks overshooting on its interest rate goals by keeping them too high for too long and the speed of interest rate hikes this year, which have left little time to evaluate the effect of each hike on inflation and the state of the economy.

“The Fed should now stop raising rates and wait to see if the punch bowl has been sufficiently drained.”  - Bill Gross
Double Digit Price Gains?

Double-digit real estate price gains in 2023? 
That is what many are anticipating in Dubai where they are experiencing an influx of new buyers including Europeans seeking a sun-kissed, low-tax life; financiers fleeing Asia’s coronavirus restrictions, Russians flocking to one of the few havens open to them since the war in Ukraine. Some say this only impacts the high end of the market.

Commercial to Residential?
There is about 998 million square feet of vacant office real estate across the US. What looks like a catastrophe to many building owners presents an opportunity, a possible catalyst for converting some older office spaces to new uses and transforming downtown neighborhoods into areas where people can also live, especially as the US faces a deficit of more than 3 million homes. City and business leaders from New York, Chicago, Philadelphia, and Seattle last month began a series of meetings, convened by the Brookings Institution, exchanging ideas on re-envisioning the future of their downtown business districts. If all this square footage was converted, roughly 800,000 1,200sf apartments could be created, well short of the 3 million needed due to extreme under building over the past 12 years but these conversions are not easy, cheap, or fast.

Entering 2023 with some humility, strength, resolve, the will to work harder and smarter which will produce reliable results and an even greater sense of achievement. The challenges we face now are simply different. But moments like this are when great agents and great companies separate from the rest. 

Let’s make 2023 an incredible year together.

2022 vs. 2021 
Single Family Home Comparisons by School District

Armonk 
Inventory down 19%, Median Price Up 9%, PPSF up 13%

Bedford
Inventory down 30%, Median Price Up 7%, PPSF up 7%

Briarcliff Manor
Inventory down 27%, Median Price Up 20%, PPSF up 12%

Chappaqua
Inventory down 24%, Median Price Up 16%, PPSF up 9%

Edgemont
Inventory FLAT, Median Price Up 7%, PPSF up 11%

Harrison
Inventory down 20%, Median Price Up 11%, PPSF up 5%

Mamaroneck/Larchmont
Inventory down 21%, Median Price down 3%, PPSF up 2%

Rye
Inventory down 15%, Median Price Up 11%, PPSF up 6%

Rye Brook
Inventory down 15%, Median Price Up 7%, PPSF up 7%

Scarsdale
Inventory down 21%, Median Price Up 14%, PPSF up 9%

Greenwich, CT
Inventory down 37%, Median Price Up 7%, PPSF up 12%

Year to Date Stats on the Towns

Highest Price Sold in 2022 By Town
and the winner is Bedford

Armonk

3 Terrace Circle

6 BD   8 BA   13133 SF   $35,000

Pound Ridge

81 Lyndel Road

8 BD   11 BA   11658 SF   $24,150,000

Central Briarcliff West

320 Elm Road

5 BD   6 BA   4610 SF   $3,250,000

Chappaqua

44 Algonquin Drive

5 BD   9 BA   12436 SF   $3,800,000

Edgemont

388 Clayton Road

5 BD   5 BA   5626 SF   $3,395,000

Sterling Ridge

21 Stratford Road

7 BD   12 BA   10066 SF   $8,825,000

Mamaroneck

1251 Flagler Drive

6 BD   8 BA   5750 SF   $7,000,000

Milton - Rye

1001 Forest Avenue

5 BD   6 BA   7490 SF   $13,370,000

Rye Brook

14 Birch Lane

5 BD   6 BA   6680 SF   $2,600,000

Heathcote

185 Heathcote Road

8 BD   9 BA   10543 SF   $8,287,500

Raspberry Blush, Color of the Year
click the photo for the full article

Check It Out

 Our 2022 End of Year Wrap Up Email.  Our team closed out 2022 with $168m in Sales.  We could not have done it without the support of our clients and their continued referrals.

"Persistence is not about instant gratification or overnight success.  Persistence is all about the multiple efforts made over time with some patience. It is about Repetition Discipline, Routines, Re-evaluation, Strategy, Execution, Hard Work and Good Ideas that are Implemented Well".

Kori Sassower
COMPASS

Lic. Assoc. R.E. Broker
M: 914.727.0169
kori.sassower@compass.com
www.korisassower.com
#1 Agent Rye Brook 2017-2022

Office: 212-913-9058

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. All Coming Soon listings in NYC are simultaneously syndicated to the REBNY RLS. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.