Houlihan Lawrence Reports Housing Markets North of NYC Exhibited Remarkable Adaptability, Strength in First Quarter

RYE BROOK—Despite an atmosphere of uncertainty from rising mortgage rates, stubborn inflation and geopolitical frictions, the residential real estate markets North of NYC exhibited remarkable adaptability and, in many cases, quiet strength in the first quarter of 2025, according to the Houlihan Lawrence Q1 2025 Westchester-Putnam-Dutchess Market Report released on April 14.

“But as inventory remained limited and prices climbed, buyers expanded their search parameters geographically, first into Northern Westchester, then into Putnam, and increasingly into Dutchess. This outward flow has created a subtle ripple effect, with each ring absorbing demand from the one below it,” Nunan added.

In Westchester County, single-family home sales rose 8.5% in the first quarter of 2025 as compared to the first quarter of 2024. This was accompanied by a 5% increase in the average sale price, which reached $1.18 million. Despite a notable rise in average days on the market, from 39 to 67, the sale-to-list price ratio remained a robust 101.5%, suggesting that well-positioned homes are still finding ready buyers.

In Putnam County, total sales volume declined 9% versus Q1 2024, but that headline masks a more nuanced reality. Median prices rose 10%, indicating that demand has not disappeared; it has simply shifted upmarket. Mahopac, Carmel, and Brewster remain highly active, with buyers drawn to the relative affordability and quality of life just beyond Westchester’s northern border, the report stated.

Dutchess County continues to attract interest, particularly in commuter-friendly hubs like Beacon, LaGrange and Red Hook. These areas are benefiting from the same centrifugal force seen elsewhere as affordability narrows in southern Westchester and buyers continue moving north in search of value, space, and long-term upside.

“Looking ahead, the second quarter of 2025 is expected to bring a modest increase in listing activity as would-be sellers grow more comfortable with the new normal of interest rates and recalibrated expectations. Buyers remain ready, but selective,” Nunan said.

“In this shifting environment, the connective thread is movement, both literal and strategic. Buyers are moving farther, thinking more holistically, and stretching beyond traditional boundaries. Sellers who recognize and adapt to this reality will continue to find success. As Q1 closes, the tone is one of cautious confidence: grounded in data, shaped by macro forces, and propelled by the enduring desire for home,” Nunan added.

Homes Sold: Up 9.4%
Median Sale Price: Up 4.5%

New York City Gateway
(Mount Vernon, New Rochelle, Pelham, and Yonkers)
Homes Sold: Down 1%
Median Sale Price: Up 1%

Lower Westchester
(Bronxville, Eastchester, Edgemont, Scarsdale, and Tuckahoe)
Homes Sold: Up 6%
Median Sale Price: Up 4%

Rivertowns
(Ardsley, Dobbs Ferry, Hastings, Mount Pleasant, Pleasantville, Tarrytown, Briarcliff Manor, Elmsford, Irvington Ossining, and Pocantico Hills)
Homes Sold: Up 20%
Median Sale Price: Up 5%

Greater White Plains
(Greenburgh, Valhalla and White Plains)
Homes Sold: Up 42%
Median Sale Price: Up 13%

Sound Shore
(Blind Brook, Harrison, Mamaroneck, Port Chester, Rye City and Rye Neck
Homes Sold: Down 3%
Median Sale Price: Up 6%

Northern Westchester
(Bedford, Byram Hills, Chappaqua, Katonah-Lewisboro, North Salem and Somers)
Homes Sold: Up 16%
Median Sale Price: Up 19%

Northwest Westchester
(Croton-on-Hudson, Hendrick Hudson, Lakeland, Peekskill and Yorktown)
Homes Sold: Up 2%
Median Sale Price: 0%

(Brewster, Carmel, Garrison, Haldane, Lakeland, Mahopac and Putnam Valley)
Homes Sold: Down 8%
Median Sale Price: Up 10%

Homes Sold: Down 4%
Median Sale Price: Up 12.2%

Southwest Dutchess
(Beacon, East Fishkill, Fishkill, La Grange, Poughkeepsie, City of Poughkeepsie and Wappinger)
Homes Sold: Down 19%
Median Sale Price: Up 12%

Southeast Dutchess
(Beekman, Dover, Pawling and Union Vale)
Homes Sold: Up 27%
Median Sale Price: Up 5%

Northwest Dutchess
(Clinton, Hyde Park, Milan, Pleasant Valley, Red Hook and Rhinebeck)
Homes Sold: Up 9%
Median Sale Price: Up 16%

Northeast Dutchess
(Amenia, North East, Pine Plains, Stanford and Washington)
Homes Sold: Up 5%
Median Sale Price: Up 10%