The buying frenzy in New York City suburbs is finally slowing down.
A June housing market report shows year-over-year growth slowing in the number of single-family home contracts signed in Greenwich, Westchester and Long Island, Bloomberg News reported.
For example, the annual increase on Long Island last month was 14 percent versus 162 percent in May, according to the Elliman Report by Jonathan Miller of appraisal firm Miller Samuel.
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He theorized that the decline has to do with would-be buyers getting worn down and turning their attention to other endeavors as the pandemic eases.
“Losing your fifth bidding war on a property is discouraging,” Miller told the outlet. “Part of this is consumers being fatigued with the process, and having other options in life these days, like vacations and travel.”
Westchester’s year-over-year growth in contract signings last month was 20 percent, down from May’s 81 percent. Greenwich’s growth in June was 50 percent, while its rate in May was 259 percent.
The May increases were especially high because contracts signings in May 2020 were depressed by the onset of the pandemic. Covid deaths in the tri-state area peaked in April of last year, and in-person home showings largely ceased for months.
Another reason for the slowdown in contract signings is shrinking inventory, which is likely to make the market even more competitive. The number of single-family homes for sale in June declined by 45 percent in Westchester, 3 percent on Long Island, and 11 percent in Greenwich.
“We ran out of inventory,” Douglas Elliman’s President Scott Durkin told the publication.
[Bloomberg News] — Akiko Matsuda