The residential market in the Lower Hudson Valley shows signs of a slowdown.
The number of sales in the third quarter slipped from a year ago while inventory increased slightly, according to a recent market report.
The report, issued by the Hudson Gateway Multiple Listing Services, a subsidiary of the Hudson Gateway Association of Realtors (HGAR), signals a departure from the trend in recent quarters when the lack of inventory was blamed for a sales slowdown in the heated market.
In Westchester, the number of overall sales from July to September was 3,022, the lowest in the past four years, or a decrease of 5.2 percent from a year ago when the figure was 3,189.
Meanwhile, the end-of-quarter inventory slightly increased to 4,175 from a year ago when the figure was 4,135, reversing a downward trend since 2014.
In Rockland, the number of overall sales in the third quarter was 811, down 1.2 percent from a year ago when the figure was 821.
Rockland’s end-of-quarter inventory was 1,289, up 3.6 percent compared to a year ago when the figure was 1,244, reversing the downward trend since 2013.
Jennifer Mallory, regional vice president of HGAR and associate broker with Keller Williams in Rockland, said the market, which has been heating up in the past few years, is in correction mode.
“The market runs in cycle, and you can’t have the entire time upward. At a certain point it goes down,” she said, “It’s part of the natural cycle.”
She added that the inventory has increased because homeowners decided to put their houses on the market as mortgage rates start rising.
Mortgage rates recently hit 5 percent for the first time since February 2011.
“Savvy homeowners would know that the best time to put their homes on the market is when the purchasing power of buyers is still strong,” she said.
The slowdown has yet to be translated into pricing.