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With home prices high, new Westchester communities move into ‘luxury’ market

More Westchester communities are moving into the luxury housing market as prices rise amid low inventory.

A new report by Houlihan Lawrence, a leading real estate company in the northern suburbs, showed 209 luxury homes across 15 school districts were sold in the third quarter of 2023. In Westchester, homes sold for more than $2 million are considered luxury properties, according to the report.

While overall luxury sales were down 21.7% compared to 2022, sales in three school districts —Bronxville, Rye Neck and Pelham — increased. The majority of luxury sales were in southern Westchester.

Sales in some school districts, including Pelham and Tuckahoe, have been growing since 2018. Pelham had 12 luxury sales in 2022 compared to two in 2018. Tuckahoe had three luxury sales, up from none in 2018.

Gay Prizio, director of project marketing at Houlihan Lawrence, said new communities are moving into the luxury market because their low inventory of homes for sale is driving up prices.

“We’re in a really low inventory environment,” she said. “There is not a lot to go around because there’s such a tight inventory in every price point. People are expanding their footprint of where they look for houses.”

Scarsdale had the most luxury sales (46) in the third quarter of 2023, followed by Mamaroneck (27), Rye (21), Harrison (18), Byram Hills (18) and Bronxville (16).

Anthony Cutugno, senior vice president of Houlihan Lawrence, said that while Westchester will likely see fewer luxury sales in 2023 than 2022, such sales are still higher than during the pre-pandemic years.

In 2022, 673 luxury houses were sold, compared to 333 sales in 2014. The median sale price for luxury homes during that period slightly increased from $2.65 million to $2.74 million.

More: Still the Golden Apple: Westchester County’s top 5 home sales in 2022

About 40% of this quarter’s luxury sales in Westchester closed below asking price. About 25% closed over asking, from $10,000 to $1 million over listed price.

Helu Wang covers development and real estate for The Journal News/lohud and USA Today Network. Reach her at hwang@gannett.com.

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