We really struggled with this report. On the one hand area sales are looking good with strength in the $3 million range raising our January numbers. On the other hand the loss of GE, stock market volatility, an uncertain Fed, an increasingly uncertain election and State budget woes have translated into a wait-and-see attitude among buyers. With interest rates dropping, record high levels of inventory with more coming on every day, buyers are waiting and prices are dropping.
Area Sales: Once again its a mixed bag across the county. Sales are up 1% and dollar volume down 1% with Darien, New Canaan and Stamford showing strength and Wilton and Westport soft.
New Canaan market: We take note of the precipitous 44% decrease in Pending Sales from 25 to 14. It illustrates perfectly the anxiety buyers are feeling this month. Add only 6 more Pending Sales for the trailing 30 days (ending today) and you see that this is an awful start to 2016.
New Canaan Inventory: In January inventory was up 47 houses. In February it’s up 62 year over year. A whopping 33 houses came on the market in the first half of February alone. Surprisingly 24 out of 33 are new listings we did not see on the market last year. Unsold inventory from the end of last year has yet to re-emerge.
Condos: Solid. 4 sales every month, 12 last quarter, 43 per year. Average price remains $870,000, reflecting continued demand for affordable housing in town. This is fresh inventory, turning over on average in 100 days. Of the 8 new listings this month we saw only 3 of them last year.
Timing: We’ve told you 66% of homes listed in February sell within 90 days, making it the best month to list nationally. But, we found in New Canaan buyers typically wait until May and June to make a deal, as shown in the chart above. However, what you didn’t know is the spread between asking price and sale price is larger when snow is on the ground, making January the best time to make an offer:
We told you interest rates will rise this Spring. Wow, were we wrong! We predicted the psychological impact of rising rates would stimulate a sense of urgency and drive more energy into the first quarter. Now its shaping up to look more like last Spring with most of the deal-making occurring late Spring. Predictions have cooled from 2.7% growth in prices in 2016 to plus or minus 1%.
Below is a link to the New Canaan February Market Report, and the Connecticut 4th Quarter Report, each of which includes detailed information on the market this past year. If you would like to discuss the report, or if you have any other questions, feel free to contact us at 203-247-4700 (JE) or 203-247-5999 (SE).
The New York Times was looking last week for something cute under $1 million in New Canaan. They picked this. You’ll see it featured this month and then no doubt it will be gone. Get in to see it this Sunday, Open House 1-3pm
A beautiful brick end unit at Pride’s Crossing means twice as many windows, double the light. The garage is a few steps from the patio. The basement is finished. New on the market TODAY with photos of the freshly painted interior.
NEW PRICE REDUCTION. It always starts with location and this one has it: the Old Studio Road neighborhood near schools, Waveny and town. Totally renovated top to bottom with a gourmet kitchen in today’s neutral colors.
NEW construction along Mead Park. Two freestanding luxury houses share only the driveway. The front house has a first floor master. The rear house borders the park. The 4th bedroom is optional. Completion in one month.
REDUCED from $2,550,000. You say you want charm and character from the 1930’s, but updated. You want a “football field” flat lawn. And, you’d like to live on Ponus. This is the house for you. See the video of 1094 Ponus’s sunset views here.
The iconic Willis Mills Home of 1955, an orderly 4,200-foot grid of glass and red- wood sited on a tree-lined incline, is the height of the International Style. A double- height, glass-ringed living room is cantilevered out from the hillside, offset by diagonal balconies and terraces. The renovated kitchen and lower level by Bassam/Fellows compliments Mills’ initial serene statement.
Everybody who enters this house says “Wow” Four levels of beautifully finished space & high ceilings, includes a gourmet eat-in kitchen, adjoining family room & lower level spa opening to the outdoor pool. A paneled library, with fireplace, terrace & alcove is a godsend. See the video of 1083 Smith Ridge.
The quintessential family compound on the banks of the Five Mile River includes a gracious main house with river views, a separate studio/office, a guest house and the expertly designed, award-winning party barn. The peaceful, 2.6 acre property is bordered by 2.4 acres of Land Trust and the river. See the video of 227 Lambert Road here.