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.