62 Shagbark Drive is an excellent example of the value that is currently available in
the New Canaan market.
Here is what I have seen since July 21 when the Dow started dropping (and since August 4 when it started becoming extremely volatile). Please note this article is based on New Canaan* data only. I track New Canaan because it is an important market in Fairield County real estate and it's at my door step, since my office is on Elm Street in New Canaan and I have been working in this market for the past 28 years.
Sales have been extremely steady and very, very stable since last year. As a matter of fact, since July 21, there were 141 sales compared to 144 last year almost the same. However, the average sales price has increased to $1,795,680 from $1,571,580 up 14%. Be aware that the majority of sales closings take place in the summer with slower sales closings through the fall until years end. This happens at this time of the year, every single year. I don't believe it is connected to the stock market.
My point: The buyers are here and are buying. However, I want to provide you with a market insight that you cannot ‘hear' from the data. All summer I have driven back and forth from one end of beautiful New Canaan to the other a zillion times. On each trip, I have been accompanied by buyers. Their reactions to the volatility, which I hear and experience first hand, fall into three categories:
The legacy buyer
The largest group believes that New Canaan real estate prices are low, are very good value and they feel comfortable buying today. These buyers are purchasing today for the enjoyment of their children's children.
The safe haven buyer
These people are fed up with watching their net worth climb and decline like a yo-yo. As a result, they tell me they are not listening to their finance advisor as much as they used to. I heard them say, “I am thinking for myself more. I'm not so sure our financial guy is really ‘our trusted advisor' these days.” These buyers see that New Canaan real estate is more stable than most other Fairfield County towns so they are buying here.
The ‘I've lost my shirt' buyer
These are the buyers who judge their net worth on market peaks. In essence, their ability to buy is determined by the stock market. These are, far and away, the smallest segment of clients with whom I drive throughout the county.
As you can imagine, this article is a very hard point to illustrate with a specific property, so this photo is an example of the kind of great value buyers are picking up right now. This home, which I listed early this year located in the popular South of the Y neighborhood was originally purchased August 2004 for $1,744,000 with many upgrades. When the owners decided it was time to sell, they listed the property with another broker in March 2006 for $2,095,000 which was the peak of the New Canaan market and it did not sell. I took the listing this year and priced it at 1,590,000. It closed this year on June 15 for $1,450,000!
Market insights for the week
Focus, focus, focus. If you are determined to buy or sell real estate in New Canaan, focus on this market. Know what is going on. Don't guess the impact the stock market might be having. Get the facts and use the facts to guide your decisions.
*Data from Flexmls
No comments:
Post a Comment