Some Expectations for the 2008 New Canaan Real Estate Market

With so much negative press regarding the real estate market circulating around the credit crisis, downward economic pressure and political uncertainty, I might offer a different prospective in balancing clashing expectations even if they do not impact New Canaan in the same way.

We are all aware as to how New Canaan performed historically and why so many people feel it is a special, vibrant and important place to live and own a home. The quality of life that we experience in New Canaan is truly unique as well as our community commitment, school system and beautiful landscape and surroundings. It is important to remember that most people purchase a home because they have a life changing reason or a strong motivation that necessitates a move—not because they want to turn a quick profit. Finding the right home is a very personal experience made up of a mix of price range, space, bedrooms, views, neighborhood, architecture and a host of other personal factors. When the right house presents itself, something just clicks and we know it is the perfect place. It might be far better to act on it than to regret later that you lost the home of your dreams.

I am very confident about the viability of New Canaan’s real estate market. We are emerging from six years of unprecedented activity and growth during which a lot of families “traded up” thanks to record low interest rates and a significant baby boom. Many of these families are going to hold on to their homes, not because they changed their plans, they weren’t property flippers, but because they always intended to be in them for the foreseeable future. In the meantime, they will enjoy their homes and the community in which they live, watch their home equity grow while they raise their children and advance their careers, and live out their dreams in “The Next Station to Heaven”.

When is the best time to sell a home in New Canaan?

Homeowners who are thinking of selling their homes often wonder which time of the year is the best time to sell. Whether you choose to sell in the spring, summer, fall or winter, the time it takes to sell your home and the selling price depends on the current market conditions. By understanding real estate selling cycles, you can decide the best time to sell based on your personal situation.

The real estate market tends to have some balance of buyers and sellers throughout the year based on a general pattern of strong and slow selling periods. In New Canaan, homes sales begin to pick up as early as February before going strong through May and June. This has typically been the strongest selling season of the year. While April and March, respectively are number one and two of the peak listing months, April and May respectively are number one and two of the peak binder months. The peak months for property closings are June, July and August. Much of this trend follows the school calendar as buyers start out early in the year in their search for a home and typically find it after one or two months of looking. It usually takes another 60 days from the time an offer is accepted by the seller to get to the closing table. That is because buyers need time to arrange for inspections, financing, moving and other details. The peak closing months of June, July and August also coincide with school’s summer vacation as many buyers want to move in and get situated before schools starts up again in the fall.

The market then slows down from late summer through September as many buyers have already found their home and prepare for vacation. It then picks up again in October through mid November but still not as strong as the very early spring market. From Thanksgiving to New Years the market slows as the holiday season begins.

If you are thinking of selling your home in 2008, the current time is the right time. Do not wait until the grass is green and the flowers are in bloom. Be aware of the supply and demand of buyers to homes. List your home when the largest amount of buyers are looking. Don’t wait until your neighboring competition put their homes on the market because as we get further into the year, the inventory of homes for sale increase. Right now, mortgage interest rates are incredibly low, which offers increased buying power for home purchasers.

I am always available and happy to discuss the other aspects of selling a home such as pricing your home accurately, presenting the home in its best condition and my comprehensive and professional marketing plan tailored for each property.

New Canaan Real Estate Activity January 28, 2008 thru February 3, 2008 (Single Family Residential Only)

New Listings

48 Anthony Ln $715,000 (relisted)
151 Danforth Dr $1,195,000
111 Glen Dr $1,200,000
737 Carter St $1,249,000
788 Ponus Ridge Rd $1,600,000
14 Turning Mill Ln $2,100,000
137 Old Kings Hwy $2,165,000 (relisted)
141 Old Kings Hwy $2,195,000 (relisted)
22 Ponus Ridge Rd $2,425,000
1770 Oenoke Ridge Rd $2,495,000 (relisted)
626 Weed St $2,795,000 (relisted)
31 Norholt Dr $3,095,000

Contracts Pending

127 Frogtown Rd $2,099,000
52 Indian Waters Dr $3,195,000

Homes Sold

61 Richmond Hill Rd $715,000
4 Holly Rd $810,000