Hudson Valley Real Estate Market Report: Inventory Up, Urgency Down

By   |     |  Hudson Valley Real Estate Market

Home sales were down in June. The National Association of Realtors reported that nationwide home sales dipped 2.7 percent. The likely suspects for this lagging market were median home prices, which hit a historic high of $435,300, and also 30-year mortgage rates which hovered at 6.75 percent. However, realtors in the Hudson Valley are not unduly concerned.

“Our market is really a micro market,” says Jennifer Grimes, lead broker at Country House Realty, based in Livingston Manor. “National figures don’t apply to us. As a general rule, I would actually view the market in the Hudson Valley as being quite stable, and the indicators, if anything, are the same or increased in terms of pricing. However, there are some indicators that are worth noting, which have to do with days on market, which have really extended.”

Longer days on the market denotes a lack of urgency. “There’s been a 30-percent drop year over one year in houses that went under contract in the first 30 days,” says Grimes. “That’s a big drop. Talk to any agent, particularly if they are catering to the Metro New York market, and that first week, the first 10 days, are vital. You’re hoping to get so many people in for that open house, drum up momentum, have multiple offers, and have a signed contract within a couple of weeks of listing. That sense of urgency has fallen off across the market.”

A few factors play into that lack of urgency. Hudson Valley home prices are indeed historically high, so consumers are more discerning. There’s less interest in fixer-uppers and in general less inventory to choose from. Homeowners expected to downsize have been hesitant.

Sidelined Sellers, Selective Buyers

Lisa Bouchard Hoe, principal broker at TKG Real Estate, which covers Hudson, Ghent, Kingston, and Pittsfield, finds that many homeowners are concerned about the high mortgage rate. Why sell a home with a low rate to move to what might be a smaller property with a higher rate?

“I think people that might have downsized are waiting to see what happens,” says Bouchard Hoe. “It’s that market that’s affected, but it’s also families who would like to upsize. They can’t right now, based on the mortgage rate.”

The national report noted that 15 percent of all property sales fell apart, but those properties may have been overpriced to begin with.

“We are definitely seeing a higher rate of price reductions,” says Grimes. “Some of that is actually seller driven. You get a client who says, ‘Please, please, please, can we list at this price which is higher than your recommended price?’ As an agent, you have to decide whether you should do it and go through the process. I certainly have done that this season. With some of these, you get a lot of showings. If people don’t pull the trigger after a certain number, it’s really the price. If you’re not getting the showings, then you know that you’ve listed it too high.”

Linnea VanTassel, a real estate broker and partner at Country Life Real Estate in Spencertown, selling homes in Dutchess, Greene and Rensselaer counties, has also seen reductions.

“Six, eight months ago, you weren’t seeing those price reductions much,” says Van Tassel. “But now you’re starting to see them because the market’s balancing itself.” 

Experienced real estate agents have seen the market go through many changes, so they’re not quick to assume the worst or that any trend will last.

“In general, I think sellers are still expecting those high prices they got during Covid,” says Bouchard Hoe. “So, there’s probably a downward pricing trend occurring. Not sure that that’s a long-term trend.”

Currently, the market is difficult for first time buyers.

“Interest rates are up,” says Van Tassel. “They haven’t come down, so that makes it a little challenging for first-time home buyers. Probably north of 80 percent of what I do is second homes, not primary.”

Luxury homes are selling well and cash remains king. Cash buyers made up 37.5 percent of Grimes’s sales this year. That’s down from last year’s 40 percent, but only slightly. “Interest rates don’t impact those cash buyers,” says Grimes.

What’s Selling?

Real estate markets such as Kingston and Hudson continue to be hot, while locations such as Rhinebeck have long been desirable. The classic farmhouse with a white picket fence remains the most sought-after property, although Van Tassel saw an uptick in the demand for Mid-Century homes, especially in and around Kingston. According to a recent Hudson Valley Housing Market Report, things are looking up. Two consecutive quarters of 2025 show an increase in total inventory and prices have flattened in some counties.

“The number of listings did increase by 14 percent,” says Grimes. “The big difference between this year and last year is that in general, the number of listings has increased.”

The market continues to be strong, says Van Tassel, because the area is beautiful and relatively safe from some of the environmental concerns affecting the rest of the country. “In a world where people are becoming more fearful of weather patterns, this is a relatively safe area, a healthy environment to live in and bring up your children. This is one of those safe pockets.”

According to Bouchard Hoe, the appeal of the Hudson Valley has not diminished. “It’s a beautiful place to live,” says Hoe. “It’s still affordable and there’s a lot of people that would like to get out of the city.”

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