A Look At Another Real Estate Market

I spent the weekend in Florida visiting parents and had the opportunity to look at some condos for sale. While is is dizzying to try to sort through the myriad of available properties, short sales and foreclosures in South Florida, I singled out a few and I found this condo particularly appealing.
1147 Hillsboro Mile Unit #1006 Hillsboro Beach Florida
Originally listed at $329,000, the current listing price is $169,000. However, the highlight feature of this condo is the view. Located at the 10th floor penthouse level, it has commanding views of both the Atlantic Ocean and the Intercoastal and the views to the west inland. It is located on Hillsboro Beach on The Hillsboro Mile adjacent to a string of single family multi million mega mansions, so the view over the tops of these homes is commanding and will not change. Common charges are $536 monthly, which include a 24 hour security guard, lovely pool, immaculate beachfront, community room, gym and garage parking. Taxes are $4896 per year, so the total cost of carrying the unit is approximatley $1,000 per month excluding mortgage. But at the asking price of $169,000,the mortgage is minimum. Click on the title to see the listing detail. What an eyeopener!

New Canaan Real Estate Activity January 19, 2009 through January 25, 2009 (Residential Only)

New Listings

105 Richmond Hill $699,900
183 Smith Ridge Rd $870,000
82 Lakewind Rd $1,165,000(relisted)
792 North Wilton Rd $1,925,000
128 Dunning Rd $1,995,000(relisted)
1343 Smith Ridge Rd $2,990,000
887 Weed St $7,250,000

Pending Contracts

577 Cheesespring Rd $1,189,000

Why Buy a Home in 2009?

My latest column in The New Canaan Advertiser Online speaks about some of the reasons that one would consider buying in New Canaan this year. Click on the title to read the article.

Another Huge Price Reduction on Bank Owned Foreclosed Estate in New Canaan

This bank is motivated to sell this property. This home will be a really incredible buy for a smart buyer. Now priced at $2,900,000 after being reduced yesterday by another $250,000, this home is a bargain.
STOP BY THE OPEN HOUSE THIS SUNDAY, JAN 25 FROM 1-4PM TO CHECK IT OUT OR VISIT
WWW.NEWCANAANCOUNTRYESTATE.COM

Also, as I had mentioned in my previous blogs, there are so many good homes on the market in New Canaan currently, a buyer has some terrific choices. One home that would never have stayed on the market in the past is 687 Carter St. It is an immaculate Colonial, completely renovated recently, with the most incredible thought to design and construction. This home has everything: dynamite kitchen with views of oversized swimming pool and sport court, 2 level usuable acres with children's play yard, new 3 car garage, fantastic mudroom addition with gym and full bath. It is immaculate and move in.
OPEN HOUSE THIS SUNDAY JANUARY 25 FROM 1-3 PM
Priced at $2,395,000, try to stop by and see for yourself
www.687carterstreet.com

$1,000,000 Price Reduction on 139 Hoyt Farm Rd, New Canaan, Ct now listed for $2,495,000

This motivated seller has decided to bite the bullet and sell this home. It has over 8,000 sq ft on 2 high level acres in Hoyt Farms. 10 foot ceilings, detailed moldings, marble baths, 2 story entrance hall with double staircase, 3 car garage,4 fireplaces and swimming pool. This owner says "SELL NOW". This is really an incredible opportunity for the astute buyer as the value of the land and replacement value of the house so much exceeds the asking price. To see more pictures please visit www.hoytfarmnewcanaan.com or click on the headline.

New Canaan Real Estate Activity December 15, 2008 through January 19, 2009 (Residential Only)

While there has not been too much activity over the last month, I sense that buyer interest levels are picking up as showing activity on listed homes is increasing. There are only 198 homes on the market for sale in New Canaan as of now and my advice to sellers is that if you are thinking of selling your New Canaan home this year, list it soon, because there is less competition right now. As the inventory tends to increase as we go into the spring market, you will less homes to compete with.

New Listings

18 Olmstead Court $799,000
155 Jelliff Mill Rd $1,059,000
56 Birchwood Ave $1,099,000
577 Cheesespring Rd $1,189,000
30 Mariomi Rd $1,250,000
48 Salem Rd $1,399,000
757 Oenoke Ridge Rd $5,695,000
266 Michigan Rd $6,795,000
195 Dans Highway $9,995,000

Pending Contracts

22 Urban St $599,000
51 White Oak Shade $1,195,000
44 Benedict Hill Rd $1,799,000
45 Shagbark Dr $2,099,000

Homes Sold

144 Hillcrest Rd $950,000

Market Activity in early January

I looked at the number of homes on the market in New Canaan today. As of right now there are 191 homes for sale which is about even with where we were last year (193) as of January 16, 2008. However, the number of homes on the market tends to increase as sellers begin to get more motivated to sell as spring approaches. As of last spring, the number of available homes in New Canaan reached over 300. So my advice to sellers is to get started now before your competition increases. While there is only a small number of contracts pending at this time and no reported sales so far this year, I am getting a sense of increased interest in the real estate market. I was out with clients this weekend showing houses in the $1.1 million price range and I witnessed something I have not seen in a very long time. When I drove up to the house I was planning to show, there were several different parties of buyers with their brokers waiting to get in, and this was on a snowy saturday. My phone has been ringing with more questions from current buyer clients but also from many new potential buyers who are spending much more time on the internet reviewing the listings. I had 3 separate appointments with buyers who do not need to sell homes, however, they are still moving cautiously. At my open house on Sunday, I had a visitor who also is renting in New Canaan and looking seriously to buy now because she told me prices were low and so were interest rates. My sense is that there is pent up desire to make moves this year as many potential buyers have put buying on hold for a while. It certainly is true that while everyone wants to make a prudent investment, you can not live in the stock market but you do want to live in a value priced home.

Some Winter New Canaan Scenes

I came across these pics from my professional photographer, Alan Goldfinger, of New Canaan in the winter and I thought that they are very good and timely.

OPEN HOUSES THIS WEEKEND. BRING YOUR CHECKBOOKS Sunday January 11, 2009 1-3PM

184 Lukes Wood Road $3,150,000
www.newcanaancountryestate.com


60 Parting Brook Rd $985,000
www.60partingbrook.com

Rather than watch the stock market go up and down, why not buy one of these fantastic homes at these discounted prices. If we are not at the bottom of the market, we certainly are near it and when prices start to go up, it is hard to catch a moving train. Remember you cannot live in the stock market but you certainly can live in a house.

A look back at historical home appreciation rates in New Canaan over the decades

I wrote the following article for The Advertiser. I studied all the MLS sales this year and tracked the rate of appreciation with each of these homes from the day they were last sold.

Written by Denise Gannalo for The New Canaan Advertiser Online
Wednesday, December 31, 2008

Much is being speculated as to what has happened to the dependable appreciation rates of resale homes in New Canaan and how much those rates have been affected this year in the economic downturn. I decided to take a look at the 163 sales of residential homes that have closed so far this year.

First of all, the number of transactions has decreased 36 percent from 254 sales during the same period in 2007 to the current date. This is the total amount of sales transactions, not the sales price. However, in analyzing appreciation, it is important to look at how long the seller owned the home before selling it this year.

In interpreting the data, I eliminated any sales that were previously bought as new construction, tear downs or land. The New Canaan numbers are skewed by new construction and I believe it is more informative to look at individual sales of resale homes to get a more accurate picture.

Sellers who sold this year who had previously purchased their homes in the 1980s received a total average of 226 percent appreciation or approximately 11 percent yearly. For those who originally bought their homes in the 1990s, the total appreciation was 121 percent or approximately 12 percent yearly. After those two stellar decades, it is no surprise that the appreciation rate became less spectacular. Sellers who purchased their New Canaan homes between the years 2000 through 2004 have realized approximately 34 percent appreciation after their sale this year or approximately 6.8 percent per year. However, if the home was purchased in the year 2005, 2006 or 2007, these resales gained an average of 2 percent.

Remembering that this is an average and that new construction was not considered, some sellers gained slightly more and some had to sell for slightly less. Although the New Canaan real estate market certainly prospered during earlier decades, the actual numbers of those who have only owned their homes for a few years are not as negative as the effects felt in other parts of our country.

To cite a specific example, 82 Canoe Hill Road sold in August 2005 for $2,950,000. It is a classic brick Colonial with a manicured 2 acre property, great curb appeal and a swimming pool. It was resold again this year in August and the seller received $3,095,000, after making some improvements of new appliances, countertops, new interior painting and floor refinishing. The appreciation rate gained in this sale was 4.6 percent. In both these transactions, 2005 and 2008, this home sold at full asking price because in both of these sales, the home was in impeccable condition and more importantly, the home was priced right, not overpriced. In both these instances, this home also sold within days of listing.

While we face uncertain economic times as we head into 2009, one consistent principle is key to selling. This market is driven by price and the competitive advantage is to pinpoint a listing price that is consistent with the current New Canaan market not the New Canaan market of decades past.

Looking Forward to 2009

While there is much uncertainly about the real estate market in 2009, I can offer some thoughts for anyone wishing to make a move this year.

While no one knows where the bottom of the market is, prices have fallen in those sales which have taken place recently. Those sellers who did sell, whether a bank or an individual have taken a major discount off their asking price.

Money is cheap and will get cheaper. Banks do have money to lend provided you have verifiable income, good credit and a 25% down payment. Additionally, the government is going to provide more money for purchasers to fund mortgages through various economic stimulus plans.

I was listening to a television show with Barbara Corcoron. She made some important points for buyers and sellers venturing into the real estate market this year. Some of her ideas make a lot of sense and I thought I would pass them on.

For buyers: Be comfortable with what you can afford, not just what the bank tells you is allowable. Your payment should not exceed 30% of your net take home pay but if you feel that is still a stretch, set your sights lower. Also, look at homes priced 20% above what you can afford and compare those homes. You are in a position to get a deal from a seller who has to sell now. However, if you try to sharp shoot the market and get a rock bottom price looking for the bottom, you could miss the perfect home. By purchasing near bottom, you will be Ok if you are looking at this purchase as a longer term investment and a home, not just a quick flip. Also, look for bank owned properties. Banks have no emotional attachment to the property, it simply a case of numbers. Case in point: 184 Lukes Wood Road, listed for sale with me and is bank owned. The bank is offering this exceptional property at an asking price of $3,150,000. You can visit the website at www.newcanaancountryestate.com.



For sellers: First of all, don’t buy before you sell, this seems obvious but people continue to do it. You can also offer below the market financing at a reduced rate. If you offer to finance the buyer’s mortgage under a 5% interest rate, you will triple the amount of traffic of people who will look at the home. Don’t consider major renovations; however do consider remodeling changes such as changing countertops or backsplashes in the kitchen. Market the property online. 2 out of 3 buyers look online for homes. If you list with a broker, make sure the home is on all the major websites. Your front face online should be shiny and bright. The major websites your home should appear should be your local newspaper online, www.realtor.com, www.trulia.com, www.raveis.com etc.

And call me for any questions regarding the local real estate market.

Peaceful Christmas

At this time of the year I would like to extend my best wishes for a holiday season filled with peace and health and hopes for a new year surrounded by family and good friends.