New Canaan, How is the real estate market doing so far this year?

Mead Park February 27, 2010, the morning after the snowstorm

The answer is much better. While the average selling price of single family homes in New Canaan has decreased over 20% in the last year, the activity in the market has certainly been on an ascent since the summer of 2009.

After the first two months of this year, we have 211 homes on the market but we have already had 16 closings. These sales have ranged from a low of $597,000 to a high of $2,676,000 which relates to a median price of $1,581,000 and an average price of $1,593,000. The average days on the market for these sales took 263 days and these homes sold for 91.84% of listing price.
While on the surface, these statistics do not look impressive, compared to the same period last year (2009) there were only 2 closings at $1,070,000 and $1,150,000.

Condos are also on a similar rise. While there was only one sale during this time period in 2009, there have already been 5 condominium closings with an average price of $500,000.

Even more encouraging is the trend of land sales which have virtually come to a standstill over 2009 because of the reluctance of builders to purchase more land to start building new homes. Their reluctance was also due to the fact that they also had unsold inventory which needed to be moved before they could have the funding to start anything new. The credit crisis and the timidness of buyers certainly did depress the new home sales. However, builders are starting to put their toe into the market again slowly. So far this year, there have already been land sales. 92 Parish Rd listed at $1,150,000 is pending, 585 Canoe Hill Rd has closed at $1,450,000 and 388 Weed Street had closed at $1,300,000. In addition, a builder has purchased my listing at 74 Thayer Drive for $735,000 and is planning to build a new home or a major renovation and another builder has purchased 216 Carter Street for $1,800,000. I believe he plans to knock down the existing home, subdivide the 5.5 acre property and build new. I also have another builder who is in the process of purchasing a home that is a short sale and will also be developing that property.

I believe we will continue to see sales closing along these levels with an increase in sales volume somewhat in the summer as June, July and August are the peak closing months. It is doubtful there will be an increase in prices but I also doubt a serious decline in price either. With mortgage interest levels still at record lows, we should be able to trade properties with consistency which is more important to a return to a real estate market in balance.

Good Article. Crawling Out of the Housing Market. Realtors agree Housing Market is Stabilizing but Still Troubled

This article contains some good advice if you are a seller now or are thinking of putting your home on the market.

RISMEDIA, February 27, 2010—(MCT)—The good news is, it’s a buyers’ market. The bad news is, it’s a buyers’ market. From the rubble of the housing collapse has arisen a seemingly endless supply of houses from which to choose. Good news if you’re buyer. Challenging news if you’re a seller. Mixed news if you’re a Realtor.
The extension of the home buyers’ credit is expected to spur an increase in sales during the first quarter of 2010, normally the slowest quarter of the year, said Gary Walter, executive vice president of the Southwestern Michigan Association of Realtors Inc.
With competitive prices, low interest rates and a huge tax credit on their side, buyers are jumping off the fence. And if you’ve got a house to sell, there are things you can do to make sure they land on your side, Realtors say.
“If you’re looking around your house and you ask yourself: ‘Should I paint this room?’ you probably should,” said Ryan Arnt, associate president of Meredith and Kamp Realtors of Stevensville.
Another piece of advice from area Realtors—be reasonable about the price. And be flexible. “If you’re going to list your house, it’s going to disrupt your lifestyle pattern for awhile. You’ll need to be willing to show at a moment’s notice, be as agreeable and as flexible as possible, and put a little effort into it. The return will be worth it,” said Sharon Halliburton, broker associate with American Homes of Stevensville. She and other area Realtors say the worst is over. “I’m extremely optimistic. We’ve turned a corner,” Halliburton said.

National picture

After a surge last year from September through November, the original deadline for a $8,000 tax credit, existing home sales nationally fell in December 2009. But prices rose from December 2008 and sales overall improved in 2009, according to the National Association of Realtors.
For all of 2009, there were 5.1 million existing home sales, 4.9% higher than the 4.9 million transactions recorded in 2008, the first annual sales gain since 2005.

Economists say the market is going through swings driven by the tax credit. The extension of the tax credit is expected to spur an increase in sales during the first quarter of 2010, normally the slowest quarter of the year. The extension gives buyers until April 30 to buy and until June 30 to close. The credit, up to $8,000, originally was for first-time buyers only, but has been extended to include homeowners who have lived in their home for five of the last 8 years. These people get up to $6,500. Extension of the tax credit adds more potential buyers to the market.
By early summer, the market should benefit from a more balanced inventory, leading to an overall rise in sales in 2010, economists say.
Jobs, jobs, jobs
But a lot could depend on the job market. Realtors say job creation is the key to a continued recovery in the housing market.
National figures for January showed an inventory of 3.29 million existing homes, 11.1% below a year ago and 28.2% below the record of 4.58 million in July 2008. Nationally, the median home price in December 2009 was $178,300, 1.5% higher than in December 2008. Economists said that was due to an increased number of mid- to upper-priced houses in the mix.
To sell your house, she said, it’s got to look better than everybody else’s on the block. “Work on curb appeal outside. Inside, de-clutter, clean, paint, all the things you’ve been meaning to clean anyway- take a third of the stuff out of every room.”
Atilla recommends “staging” a house before putting it on the market. “You get somebody with a good eye and you can cost-effectively make the home as good as it can be. Paint, rearrange furniture, add color accents, put towels in the bathroom. If you need a new roof or furnace, be honest about that in your price.”

What a great buy. This New Canaan home reduced today to $1,465,000

Wake up buyers. Now is the time to buy this great 5,000 sq ft Colonial on a quiet cul de sac on New Canaan's west side. Lots of improvements and remodeling both inside and out make this property a really great buy. Private 2 acre level lot on cul de sac with recent professional landscaping improvements.

New Canaan Real Estate Activity Feb 14, 2010 through Feb 21, 2010

It was a very quiet week in New Canaan. No real estate closings took place, however there were 5 new listings and 3 new pending contracts.

Pending Contracts
3 Meeting Grove Place $1,095,000
55 Running Brook Rd $1,985,000
82 Arrowhead Lane $2,395,000

New Listings
179 Ponus Ridge $899,999
1134 Weed St $1,625,000
152 Weed St $1,650,000
and 2 more that are noteworthy in respect to being unique with some interesting features.

174 Fox Run just listed at $1,595,000 by Brotherhood and Higley Real Estate was built in 1969 and has 3920 sq ft and 4 bedrooms. It is located on 2 acres overlooking a pond.

11 Whitney Ave is listed at $1,275,000  by William Raveis Real Estate and is located on .18 acres right in the heart of town. It is a converted barn built in 1889 with 4 bedrooms and some rental apartment space.

Open House Sunday February 21, 2010. Affordable Upscale Condo at The Village of New Canaan

Open House Tomorrow
Sunday 2/21/2010
2-4pm
85 Locust Ave  Unit #516
New Canaan

Priced at $325,000, this one floor unit is maintenance free with private deck overlooking the rear quiet gardens of the complex. Affordable monthly charges of only $185 and finished lower level gym/office with wall of custom storage closets. Parking right outside the unit.  No steps.

Also for rent at $1900 month.

What a Great Piece of Real Estate

I was in Grand Central Station  the other day and it continues to amaze me as to the importance of this vital landmark. Not only is it an integral part of the movement of the city, over 500,000 people pass through it each day. Originally built in 1913, it is as beautiful, vibrant and as useful today as was it's original intention almost 100 years ago.

The New Canaan News writes about this Blog

I was interviewed for an article in the New Canaan News which appeared yesterday about bloggers in New Canaan. Brittany Lyte did a very nice job. The article highlighed 4 bloggers and a fairly good part of the article was about me and this real estate blog. I would love to hear what you think so please let me know.

Tax credit for energy efficient home upgrades

You can claim 30 percent of what you spend on qualified improvements up to $1500 for 2009 and 2010 combined.  This 30% tax credit can be taken for adding energy saving improvements to your home such as certain heating and cooling systems, water heaters, energy efficient windows, doors, insulation and certain roofs.  Installation is not covered. Look for the manufacturer's certification that the product qualifies as energy efficient under the terms of the new law. An energy star designation is all you need. You would have to spend $5,000 over a two year period to claim the full $1500.

http://www.nytimes.com/2010/02/14/business/yourtaxes/14energy.html?scp=1&sq=dont%20overlook%20the%20rewards%20for%20thinking%20green&st=cse

NBC features New Canaan in it's Around Town Video. Click here to view

New Canaan, How are we doing so far this year?

The answer is good. Buyers are coming out and looking, some homes are going pending and compared to last year, we are light years ahead in sales. During the first 6 weeks of 2009 compared to the same time frame this year, there were actually no sales at all in New Canaan. So far to date, we have had 16 closings with the average sales price of $1,660,000. These sales took an average of 271 days on the market and sold at 91.92% of asking price. Not too bad.

The following is the list of homes that sold

6 Leslie Lane $585,000
74 Thayer Drive $735,000
82 Woodland Rd $850,000
165 Orchard Dr $890,000
103 South Ave $900,000
35 Benedict Hill $1,020,000
135 Lone Tree Farm $1,298,000
216 Carter St $1,800,000
380 Michigan Rd $1,875,000
87 Bald Hill Rd $2,295,000
12 Wascussee Ct $2,300,000
70 Thrush Lane $2,500,000
57 Welles Lane $2,600,000
219 Michigan Rd $2,676,750

In addition, there were also 5 condominium sales in New Canaan.

There are 208 homes currently on the market but there is another 20 homes that are pending or in contract ranging from $499,000 to $3,875,000 with a median listing price of $1,495,000.

I see some pressure from buyers who wish to purchase in the next few months as fears of mortgage interest rates rising cause buyers to act now. So for now, I see a markedly stronger sales market with lower inventory. If you are a seller thinking of selling your home this year, sooner is better than later as you will have less competition now, however, that will change as we get further into the spring and more sellers put their homes on the housing market.

Just on The Market For Rent. One Floor Living with Gourmet Kitchen Complete with Pizza Oven

This one floor home is easy to live in. It has no steps and you can walk out to the tennis court right in the flat back yard. It is available immediately for $6500 per month. But the best part for me is the pizza oven right in the kitchen. If you look in the photo there is even a wood fire burning. It is the same oven as in Sole Restaurant in New Canaan and is built in Italy by the Mugliani Oven Company. I also have this oven at my house but I have it outside on the patio. You can make the best pizzas, chicken and baked dishes in it. It is a lovely and leisurely way to cook when you have a little time.

New Canaan in the Snow

I just came across these pictures taken by Alan Goldfinger for me several years ago and I think that New Canaan looks lovely in the snow.