With all eyes turned on the real estate sales market, I decided to take a look at the rental market and how it stacked up. Typically, when sales and prices take a downturn, rentals pick up. However, after analyzing the data to date this year, the results are very surprising.
Regarding residential sales year to date, our average price is $2,299,955 up 17.7% from $1,954,116 during the same time period last year. There have been 235 closed sales to date this year versus 222 closed sales last year. Because there have been 17 high end sales over 5 million this year and 4 more that are under contract, I then looked at sales under 4 million. The average price of homes under 4 million to date this year is $1,857,810 up 5.8% from $1,756,432 during the same time period last year. Also of interest is that the same number of properties under 4 million, 209, closed as of this date in both years
The rental market is really surprising. Of the 142 rentals in 2007, the average rental price is $4,110. There were 140 rentals in 2006 and the average rental price was $3,342. This represents an increase of $768 or a 23% increase in rental rates. Obviously, the number of rentals in New Canaan remain fairly even because the amount of rental properties do not increase or decrease very much and remain fairly constant. However, the increase in the average price is very noticeable as well as the increase in the median price, up from $2800 last year to $3200 this year. Rental prices have significantly increased. This is good news for investors and anyone who is considering purchasing investment properties in New Canaan in the near future.
A serious and factual look into the housing market and homes for sale in New Canaan, Ct by Denise Gannalo,an experienced, trusted and knowledgable professional and Top Producer of William Raveis Real Estate for 15 years. WWW.NEWCANAANHOMES.BLOGSPOT.COM
Wednesday, November 28, 2007
Sunday, November 25, 2007
New Canaan Weekly Activity through November 25, 2007 (Single Family Residential Only)
New Listings
90 North Wilton Road $1,375,000
105 Parade Hill Road $1,850,000 (Not built yet, only proposed from plans)
109 Parade Hill Road $1,999,000 (Not built yet, only proposed from plans)
Contracts Pending
15 Old Norwalk Rd $925,000
27 Woodridge Circle $1,499,000
1035 Valley Road $2,249,000
Homes Sold
73 South Avenue $1,125,000
74 Kimberly Place $1,400,000
126 Hoyt Farm Road $2,000,000
881 Valley Road $2,800,000
Monday, November 19, 2007
New Canaan Weekly Activity through November 19. 2007 (Single Family Residential Only)
New Listings
36 Mortimer St $789,000
72 Gerdes Rd $1,098,000
88 Fieldcrest $2,395,000
Contracts Pending
57 Brushy Ridge Rd $1,139,000
162 Logan Rd $1,349,000
47 Stonehenge Dr $2,200,000
30 Woodridge Circle $2,950,000
Homes Sold
185 Sleepy Hollow $910,000
748 South Avenue $1,110,000
48 Marshall Ridge $1,680,000
57 Chichester Rd $2,825,000
104 Devonwood Ln $5,300,000
142 Michigan Rd $5,675,000
Thursday, November 15, 2007
A look at fourth quarter sales and some advice to home sellers.
As we are at the half way point in the quarter, the number of sales transactions are down this year as compared to last year. There have only been 13 sales of residential homes in New Canaan in October and to date in November, as compared to 21 sales in 2006 during the same period. If you currently have your home listed for sale you might consider that properties listed above the market just sit there. Sometimes it depends when the seller bought his home. Someone who bought at the peak might be tempted to list the home higher than someone who had bought at a time when prices were lower. However, if the seller can’t sell his house because he is asking too much, then the same seller can’t become a buyer of his next home. This contributes to a slowdown in the market.
If you are holding out for an above the market price to maximize your investment, this may not be the time. If you want to sell your house then list it at the market price and you will sell it. If you don’t really want to sell, then don’t put it on the market. It is very stressful to have your home on the market. Cleaning up every morning, having people walk through at inconvenient times and then reject the house is very painful and expensive. This may be the time to take a fresh look at your motivation to sell or not.
If you are holding out for an above the market price to maximize your investment, this may not be the time. If you want to sell your house then list it at the market price and you will sell it. If you don’t really want to sell, then don’t put it on the market. It is very stressful to have your home on the market. Cleaning up every morning, having people walk through at inconvenient times and then reject the house is very painful and expensive. This may be the time to take a fresh look at your motivation to sell or not.
Monday, November 12, 2007
New Construction statistics
New homes are a huge part of the New Canaan real estate market and they hold a great appeal for many buyers because their features are fresh and exciting and the new buyer does not have to do any fix up or remodeling. Of all the 249 homes that are actively on the market for sale today, 26.5% are new construction and 18.7% of all sales this year have been new construction.
However, a buyer might realize a better value if they were to purchase a home that needed some renovation or updating and controlling the project themselves to ultimately attain the house of their dreams. Understanding the scope of the project and gathering accurate information about architects, contractors and materials might be somewhat time consuming, but the result of ending up with a home that you really love at a better value might be worth the effort.
I would be happy to share my insight into homes that have unrealized value and my network of professionals to help you design your perfect home.
However, a buyer might realize a better value if they were to purchase a home that needed some renovation or updating and controlling the project themselves to ultimately attain the house of their dreams. Understanding the scope of the project and gathering accurate information about architects, contractors and materials might be somewhat time consuming, but the result of ending up with a home that you really love at a better value might be worth the effort.
I would be happy to share my insight into homes that have unrealized value and my network of professionals to help you design your perfect home.
Friday, November 9, 2007
The State of the New Canaan Real Estate Market
In spite of the perceptions regarding the housing market here, the statistics are very interesting and not what you might expect. The fact is that the number of houses sold and the average selling price in 2007 to date as compared to the same period in 2006 is actually up. This year, 225 houses have sold compared to 218 last year. In fact, there were 27 sales this year over 4 million dollars as compared to only 12 last year. That means a 4 million dollar or over sale occurred approximately every two weeks.
In determining average prices, I realize that these high end sales might distort the numbers. Therefore, eliminating every sale over 4 million, the average price in New Canaan this year is $1,862,847 vs. $1,757,715 in 2006 or an increase of 6%.
In each price category, 1 million+, 2 million+ and 3-4 million the number of sales were almost identical. The average days on the market is 182 days, however, that number may increase as there are 249 homes actively on the market for sale as opposed to the 225 sales, which results in a one year inventory.
Not to be overly optimistic, however, these numbers report the picture of the market. It will be interesting to recalculate at the end of the year and analyze how the fourth quarter affected the total yearly statistics.
In spite of the perceptions regarding the housing market here, the statistics are very interesting and not what you might expect. The fact is that the number of houses sold and the average selling price in 2007 to date as compared to the same period in 2006 is actually up. This year, 225 houses have sold compared to 218 last year. In fact, there were 27 sales this year over 4 million dollars as compared to only 12 last year. That means a 4 million dollar or over sale occurred approximately every two weeks.
In determining average prices, I realize that these high end sales might distort the numbers. Therefore, eliminating every sale over 4 million, the average price in New Canaan this year is $1,862,847 vs. $1,757,715 in 2006 or an increase of 6%.
In each price category, 1 million+, 2 million+ and 3-4 million the number of sales were almost identical. The average days on the market is 182 days, however, that number may increase as there are 249 homes actively on the market for sale as opposed to the 225 sales, which results in a one year inventory.
Not to be overly optimistic, however, these numbers report the picture of the market. It will be interesting to recalculate at the end of the year and analyze how the fourth quarter affected the total yearly statistics.
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