Luxury Market Update for Year End Connecticut

Luxury Market Update for Year End Connecticut & Massachusetts 2009

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New Housing Data Matrix for New Canaan. Check it out.

William Raveis Real Estate

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.”