Q1 2025 Real Estate Market Report

The housing market in New York City’s northern and western suburbs continued its path toward recovery in the first quarter of 2025. Sales activity is gradually improving, prices once again reached record highs, and inventory levels are steadily building. While there are some cautionary signs, such as softer pending sales, the overall trend points to a market working its way back to balance. Here are three key takeaways from the first-quarter housing market:

SALES CONTINUE TO CLIMB.
Following nearly three years of declines, sales showed modest growth to start the year. Transaction levels increased across most regions, with sales rising 7% in Westchester and the Hudson Valley, 2% in Northern New Jersey, and 3% in the Bronx. Fairfield County was the exception, with a slight 3% decline, but its rolling annual totals still posted a 1% increase.

However, pending sales—a leading indicator for upcoming closings—softened this quarter, down 5% in Westchester and the Hudson Valley, 6% in Northern New Jersey, and 14% in the Bronx. Fairfield County bucked the trend with a 1% increase in pending sales, offering some optimism for the coming months. While we anticipate ongoing recovery, these pending numbers suggest a slower second quarter.

PRICES SET NEW RECORDS.
Home prices continued their upward march, hitting new highs across the region. Average prices increased as follows:

• Westchester and the Hudson Valley: Up 7%

• Northern New Jersey: Up 11%

• Fairfield County: Up 16%

• Bronx: Up 5%

Despite higher mortgage rates and economic uncertainty, strong buyer demand and low inventory are sustaining price growth. Over the rolling year, prices have climbed between 6% and 10%, depending on the region, further reinforcing the market’s resilience.

INVENTORY KEEPS BUILDING.
Inventory levels continued to expand in Q1, offering relief after years of constrained supply. Listings rose across all major markets:

• Westchester and the Hudson Valley: Up 4%

• Northern New Jersey: Up 5%

• Fairfield County: Up 10%

• Bronx: Up 16%

With inventory climbing steadily over the past year, we’re seeing early signs of a shift toward a more balanced market. While total supply still falls short of the six-month benchmark for neutral conditions, this growth is encouraging for both buyers and sellers. If listings continue to rise, we expect more transactional activity and an eventual stabilization of price growth.