The Hudson Valley housing market continues to show strength in 2024. Home values have increased across Dutchess, Orange, and Westchester counties – even while other regions face economic uncertainty. This report examines and compares the housing market conditions at local, regional, and national levels to help buyers and sellers make informed decisions about their next steps.

 

Dutchess County

Prices

Dutchess County has experienced substantial price growth, with the median sale price reaching $470,000, representing a significant 16.3% increase from the previous year (Redfin). This appreciation rate exceeds both the state and national averages, indicating strong market performance.

Market Dynamics

The market has become notably more competitive, with homes selling much faster than in 2023. The median days on the market have decreased dramatically from 66 to 39 days (Redfin), suggesting heightened buyer activity and market efficiency.

Competition

New listings have declined by 3.07% overall (OneKey MLS), with single-family homes showing the most significant decrease at -10.9%. Despite this inventory constraint, the list-to-sell price ratio has declined by 0.5% (OneKey MLS), indicating slightly more balanced negotiating conditions.

Sales

Home sales have shown robust growth, with 244 homes sold, representing a 17.3% increase from the previous year’s 208 (Redfin). Despite reduced inventory, this growth in sales volume suggests strong market demand.

 

Orange County

 

Prices

Orange County’s median sale price has reached $435,000, showing an 8.7% year-over-year increase (Redfin). While more moderate than Dutchess County’s growth, this appreciation still outpaces the national average of 5.1%.

Market Dynamics

The market has maintained its pace, with homes spending a median of 38 days on the market, unchanged from the previous year (Redfin). This stability suggests a well-balanced market environment

Competition

New listings have decreased by 4.87% (OneKey MLS), with co-op properties showing the most significant decline at -16.7%. However, the list-to-sell price ratio has increased by 1.7%, indicating stronger seller leverage in negotiations.

Sales

The county has seen impressive sales growth with 340 homes sold — a 16% increase from 293 in the previous year (Redfin) — demonstrating robust market activity despite inventory challenges.

 

Westchester County

Prices

Westchester maintains its position as the most expensive market in the region, with a median sale price of $710,000, up 13.2% from last year (Redfin).

Market Dynamics

The market has become more efficient, with days on the market decreasing from 35 to 31 (Redfin), indicating strong buyer demand and market liquidity.

Competition

New listings have increased by 2.53% (OneKey MLS), and the list-to-sell price ratio has improved by 1.77%, suggesting a strong seller’s market despite increased inventory.

Sales

Sales volume has shown modest growth of 1.9%, with 628 homes sold compared to 616 in the previous year (Redfin), indicating steady market activity.

 

Regional Comparison

Living costs and home prices vary widely across the Hudson Valley. Here’s what you need to know:

• Westchester is the priciest area, where cost-of-living averages $5,567 per month (BestPlaces.net), and the typical home costs $710,000. 
• Dutchess and Orange counties are more affordable, with similar costs. Both these areas cost about $4,100 per month to live in, with home prices around $470,000 and $435,000.

Compared to New York State as a whole, our region is doing well. While the state’s typical home price rose 7.1% to $529,400 (Redfin), most Hudson Valley counties saw bigger increases. Dutchess and Orange are seeing lots of homes sold (up 17.3% and 16%), while Westchester is holding steady with modest increases in sales.

 

National Comparison

The Hudson Valley is outperforming most of the country. Dutchess, Orange, and Westchester counties all have higher home prices than the national average of $434,271. The homes are selling faster, too. Lower mortgage rates nationwide (down 1.2 points from last year) have helped keep buyers in the market despite higher prices (Redfin).

The Hudson Valley market is unique due to its proximity to New York City, which affects the home prices and sales differently than other parts of the country. While the national market shows steady growth in both sales (up 6.1% – Redfin) and new listings (up 3.8% – Redfin), our counties show exaggerated changes in both directions. This means our market responds more to what’s happening in our region than to national trends.

 

What This Means for Hudson Valley Housing Market

 

If You’re Thinking of Selling

Now is a great time to sell your Hudson Valley home. Home prices are up across all counties, with Orange County seeing the biggest jump at 8.7% (Redfin). Homes are selling quickly, too. Westchester homes typically sell in just 31 days, while Dutchess County homes are moving in 39 days, down from 66 last year (Redfin). Sellers are getting close to their asking prices. This is especially true in Orange and Westchester counties, where the selling price compared to list price for both areas has improved by about 1.7% from last year. If you’re considering selling, the currently low inventory in most areas — such as Dutchess county —  means less competition from other sellers. 

If You’re Looking to Buy

While home prices are higher than last year, there’s some good news for buyers. Here are some points to consider: 

• Mortgage rates have dropped 1.2 points from last year to 6.4% (Redfin), making monthly payments more manageable. 
• If you’re looking in Westchester, you’ll find more options than last year, though prices are highest here at $710,000 median, with living costs 29.2% above the state average.
• For those considering more affordably-priced areas like Dutchess and Orange counties, keep in mind that the market in these areas is fast-moving. You’ll need to be ready to act quickly when you find the right home.

 

Changes to Come

The New York State FY 2025 Budget includes changes that could affect the local housing market in Hudson Valley. The biggest impact may come from the extension of the 421-a tax incentive program, which will create about 71,000 new apartments in New York City. “My administration is committed to combating the affordability crisis in every region of the State,” says New York State Governor Kathy Hochul.

This increase in NYC housing options could ease some pressure on the Hudson Valley market. Some buyers looking in the area might return to NYC home-hunting due to increased affordability. This could lead to more balanced conditions in our local market, with less demand potentially decreasing home prices and prolonging the days that properties are listed. However, the Hudson Valley’s appeal as a suburban community with more space and different lifestyle options remains strong, so we expect our market to stay active even as NYC adds more housing.

 

Conclusion

The Hudson Valley housing market remains robust in 2024, characterized by significant price increases across all counties. Westchester maintains its position as the region’s premium market. The area continues to outperform both state and national averages, with homes selling particularly quickly in most counties and strong buyer demand despite higher prices.

In summary, while the market maintains its competitive edge and appeal as a desirable suburban destination, upcoming state policy changes —  particularly new housing development in New York City —  may bring more balance to the region. However, the Hudson Valley’s unique combination of space, lifestyle, and proximity to New York City suggests the market will retain its vitality even as these changes take effect.