There seems to be an endless stream of news regarding the housing market, the credit crunch crisis and the unemployment figures. In light of some of this sobering news, I have put together an assessment of where New Canaan stands regarding the 2008 real estate market.
The actual inventory of homes on the market is 248, which is not a high number for New Canaan inventory. As some properties have sold and other properties have been withdrawn form the market, this figure is substantially reduced from inventory levels that approached 300 homes earlier this year. The above graph shows the levels of inventory as of the end of October 2008. A property on the market during the holiday season could benefit from decreased competition as some homeowners withdraw their homes from Thanksgiving Day until after the New Year. During this period, it not that much of an inconvenience for sellers because the actual amount of home showings are less and, more importantly, only the most serious buyers are looking at this time of year.
Our average price of single family homes has dropped from $2,308,070 as of November 18, 2007 to $2,150,842 today. This drop represents a 7% decline, however, the median price has only dropped 5% from $1,850,000 to$1,750,000. The most signiicant drop that I see is in the actual number of residential closings down from 231 to date in 2007 versus 158 to date this year. This 32% decline is representative of what everyone is observing as the "slowdown of the real estate market".
In breaking down the sales into price segments, 46% of the homes sold were between 1 and 2 million with 13.5% under 1 million. Additionally 40.6% of the homes sold were over 2 million, with 22.2% of the homes between 2 and 3 million and 18.4% of the homes sold over 3 million.
The percentage of listing price to selling price to date this year is 94.9% which remains relatively unchanged from 95.1% during the same period in 2007. The average number of days on the market this year is 179 days versus 183 days last year.
Summing up, sales are still happening but only to those sellers who have adjusted the asking price of their home accordingly and whose homes are in good condition. Contrary to popular belief, there is plenty of mortgage money available to qualified purchasers with 700 credit scores and with verifiable income. The downpayment required is 20% down for up to million, 25% down for up to 1.5 million and 30% down for over 2 million. There is even mortage money available for credit scores under 700, however, the interest rate will be higher.
