In its recently issued third-quarter market watches ”” separate appraisals for Greenwich and for Darien/New Canaan/Rowayton ”” residential real estate company Houlihan Lawrence offered takes on the two markets that, despite differences, featured thoughtful buyers waiting for the right deals.
Another emerging commonality was the desire for conveniently located, easy-to-maintain homes.
In the Darien/Rowayton/New Canaan market, “Residential sales in Darien, New Canaan and Rowayton seem to be repeating last year”™s pattern, with the number of homes sold during the first three quarters of 2015 mirroring last year”™s numbers very closely,” Houlihan Lawrence said.
That noted, the report also said of the Darien/Rowayton/New Canaan market, “Generally speaking, buyers are adopting a more thoughtful and analytical approach to the home buying process. While challenging for sellers, the balance of 2015 could be a perfect time to buy a home while mortgage rates remain low and inventories of homes for sale exceed levels seen in recent years.”
In Greenwich, the report said, “While Greenwich itself remains a highly desirable area, buyers are willing to wait on the sidelines for the right property.
“Wall Street”™s volatility is increasingly evident in the real estate market. The summer was a roller coaster for investors, who remain on edge. Those jitters have naturally spread to the housing market and have made buyers wary of making the wrong move. They demand value to get off the sidelines. Recent evidence of some economic weakness has many believing rates will stay low for longer than expected, giving buyers even less reason to compromise, or buy into a property that isn”™t turnkey.”
The company”™s Jeff Kelly, managing broker for Darien and Rowayton, and Chris Meyers, president and CEO, authored the reports.
In each local market, year-over-year sales for the first three quarters of 2015 were within a few percentage points of the 2014 totals, the report said.
“Despite the fact that the number of sales has remained fairly constant, a more detailed analysis reveals some interesting changes taking place in our markets that could create some significant opportunities for educated home buyers,” Meyers and Kelly wrote. They cited trends relevant to that observation, including:
∙ Inventory of homes for sale continues to increase significantly. During the third quarter, the number of homes for sale continued to increase in all local markets. As of Sept. 30, the number of homes for sale compared with the same date in 2014 saw Darien”™s number up 46.2 percent and Rowayton”™s up 79.5 percent.
∙ Buyers of higher-priced homes have an abundance of options. The most significant increases in inventory continue to occur above $2 million.
∙ Year-over-year median sale prices have increased in all local markets. In Rowayton for example, median sale prices have increased more than 20 percent over last year. But this metric came with the asterisk that a rise in a market”™s median or average pricing “is often more a reflection of increased activity in higher price ranges than it is of overall market appreciation.”
∙ Buyers are placing a premium on well renovated and newly constructed homes in all local markets. The most sought-after homes are either brand new or recently renovated. “Seemingly, buyers are eager for a lower-maintenance lifestyle and they are willing to pay a premium for newer homes in areas close to town, trains and schools,” the report said.
The breakdown for Greenwich saw, overall, the number of sales down, but prices were higher. The hottest price range in the area was the $5 million to $6 million range, in which sales are up 77 percent, year-to-date.
In Greenwich, homes north of the Merritt Parkway sat on the market the longest in the area, an average of 276 days. Homeowners often adjust given such a length of time and the report said, “The fallen prices have resonated with buyers and units sold rose to 66 percent.”
Also in Greenwich, homes South of Post Road got 97 percent of their last list price and median prices were up 11 percent in the third quarter.
Among the data points: The hottest category in Riverside was typically for a new or fully renovated home in the $4 million to $5 million range.
Condo sales remained solid, the report said, “but value remains a higher priority for buyers. Prices and inventory are down.”
