High demand keeps local market hopping

By JEFF MORRIS

There’s a house currently under construction on Hemlock Hill Lane in Bedford, listed for $5,350,000. It is part of a new development, three minutes from Bedford Village and adjoining the Rockefeller Preserve. There will be seven houses in the development in all, and the first one sold for well over $5 million shortly after it was listed, based on the architect’s renderings alone. The others will likely sell for more.

Meanwhile, Redfin News reported on Dec. 22 that new home listings in the U.S. dropped 2.2% month over month to the lowest level since April 2024 on a seasonally adjusted basis. 

“Home sellers are retreating in part because buyers are retreating,” said the Redfin story. “Buyers are skittish due to high mortgage rates and economic jitters, which means many sellers aren’t getting the list price they hoped for. As a result, some are opting to delist their homes or not list at all.”

It said the typical home that sold in November went for 1.6% less than its final list price — the steepest November discount in six years. “The median U.S. home sale price rose slightly (+0.7% year over year to $433,222), but that was the slowest growth since June 2023 aside from this past May, when home prices grew at a slightly slower clip,” the report said.

So, is one of these views of the real estate market more accurate than the other? 

The answer, as it often is, seems to be “it depends” — but the view of local agents The Recorder surveyed was mostly positive.

Lindsay Matthews, a salesperson at Houlihan Lawrence, said that in the local market, “We have continued to see low inventory and strong buyer demand. However, buyer sentiment has shifted, with activity concentrated around well-priced homes that are presented thoughtfully.”

Matthews said properties that were aspirationally priced experienced longer days on the market, while homes priced appropriately often generated multiple bids, sometimes selling significantly over asking price. 

“Buyers are well aware that prices are at historic levels, and they are educated and thorough, often viewing multiple homes before making a purchase,” Matthews said. “As a result, they quickly recognize when a property is overpriced from the start. That said, buyers have shown a strong willingness to bid over asking when the price is right and the decision feels justified on their terms.”

Eileen McGrath, associate broker at Douglas Elliman, agreed that homes that have been priced right generate great activity, and often sell at the list price or over that price.

“Homes that are priced on the higher side have struggled and are a bit slower to sell,” she said. “Here in northern Westchester, it has been a strong market with value appreciation at all price levels. The properties close to town centers are very attractive, especially for commuting. Homes with such amenities as pools and tennis courts have been in great demand, as people enjoy spending time outdoors.”

Beth Silfen, associate real estate broker at Compass, said buyers were highly selective. 

“The right home still sparked competition, but only if it met the market where it was,” Silfen said. “Roughly 60 to 70% of homes sold over asking, and in one case we saw a property trade 52% above list — proof that demand is still very real.”

Westchester remains a “low-inventory, high-demand market across nearly all price points,” Silfen said.

Susan Stillman, associate broker at Houlihan Lawrence, said that in 2025, “we saw Bedford and Katonah-Lewisboro median sale prices rise approximately 10 to 12% from 2024 prices. It was a good time to list a home. There was low inventory with high demand in almost all price ranges.” 

She added that if a property was presented to the market correctly, with accurate pricing, staging or was freshened up, “we saw multiple bids and well above list price on homes under the $2.4 million price range.” 

Silfen confirmed that in 2025, “preparation wasn’t optional — homes that were move-in ready and priced correctly clearly won.” 

On the other hand, she said, homes needing full renovations struggled unless they were priced aggressively.

“Prime location and waterfront remain the exceptions,” Silfen added.

Stillman said there was an average of 45 days on the market, and that all price ranges below $2.5 million were very strong, but especially the range below $1.5 million. Matthews said the sub $1 million market remained extremely strong, “similar to what we saw during the pandemic, with buyers focused on avoiding the mansion tax.” She also saw a particularly strong demand for homes priced in and around the $2 million range. 

“At the start of 2025, many buyers who had been waiting on the sidelines due to high interest rates began to reenter the market,” said Matthews. “Early signals that the Fed would eventually begin lowering rates helped restore confidence and brought buyers out in force for the spring market. This pent-up demand, combined with the usual seasonal influx of buyers, created exceptionally strong competition and elevated overall demand.”

Stillman said the main factors she saw influencing the market were low inventory, a slight dip in mortgage rates, as well as buyers becoming accustomed to slightly higher rates, “and of course, the appeal of what Bedford, Katonah, Mount Kisco and Pound Ridge have to offer: a wonderful lifestyle surrounded by the beauty of northern Westchester.” She cited some of the cultural attributes that include Caramoor, the Katonah Museum of Art, the Bedford Playhouse and the Jacob Burns Film Center, along with “a wide variety of restaurants offering an expansive choice of culinary experiences while all being less than an hour to NYC.” 

The ‘Mamdani Effect’?

All were asked whether they had seen any evidence of an exodus from the city that some predicted would occur if Zohran Mamdani was elected mayor. 

“We have always had buyers entering our market from NYC, but nothing I would characterize as any type of exodus,” said McGrath. “Rents in NYC are continuing to climb higher, and buyers are looking to the suburbs.” 

“While I have not personally encountered buyers fleeing the city, it is certainly a hot topic and I am asked about it often,” Matthews said. “As we move into the spring market, we will naturally see increased buyer activity, as we do every year; it is possible that some of those buyers may be accelerating decisions they had already been considering. Buyers are drawn to our area for the space, lifestyle, and strong sense of community. In addition, many are seeking larger homes, access to outdoor space, excellent schools, and a quieter environment without sacrificing proximity to the city.”

“In northern Westchester, I haven’t seen a meaningful shift tied to that narrative — at least not yet,” replied Silfen. She said a major driver in the local market continues to be Brooklyn and New York City buyers in the $1 million to $3 million range, alongside local buyers adjusting for life changes. She also saw buyers seeking weekend residences as part of a broader real estate portfolio, spanning multiple demographics.

Stillman concurred: “We have seen about the same percentage of buyers from NYC this year as last — about half of our buyers are from NYC,” she added. “While the story of a mass exodus due to Mamdani’s election provides sensational headlines, the reason people leave NYC for northern Westchester continues to be driven by schools and the wonderful lifestyle.”

Looking to the New Year

All of the agents were bullish about the outlook for 2026. Silfen said, “If other markets soften, that could unlock seller mobility and finally create more inventory, which would be healthy for buyers.”

She said that based on early indicators, with sellers choosing to enter the market, “Buyers are active, demand remains strong, and we should expect continued solid momentum through the first few months of the year.” 

“I am optimistic about the outlook for both sellers and buyers in 2026,” Matthews said. “Sellers should begin preparing their homes now and work closely with hyper-local agents who can help price strategically to generate strong demand in the first days of a listing. Buyers should be equally prepared, with the right tools in place to compete effectively.” 

Matthews said that in many cases, winning a bidding war is about more than just offering price, and touted the “critical role a seasoned agent can play” in crafting “a compelling offer with thoughtful, creative terms to make an offer stand out from the crowd.”

Stillman said she thought 2026 would shape up to be a great year to list and to buy. “With the possibility of more interest rate cuts and possible lower mortgage rates, we may see more inventory,” she said. “This creates a more transactional and balanced market and may help some of our buyers who faced fierce competition find their dream home.”

McGrath had that same outlook.

“As we close out the year, and take a look back, it’s easy to see that the momentum from 2025 will boost the start of 2026,” she said. “The demand continues, because of the lack of inventory; 2026 is shaping up to be a great year. We expect to have lower interest rates, and hoping more sellers come to the market.”