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There are many reasons I feel lucky to work with Houlihan Lawrence. One of the main reasons is what they do with their Quarter Reports and the Executive Summary. Above is the cover of the 2nd Quarter Greenwich Market Report. Scroll down for the neighborhood (Greenwich, Cos Cob, Riverside, Old Greenwich) reports for June. Also, read the Executive Summary that really explains the state of the market:
We are in a Greenwich state of mind this summer. There is no better place to be these days than in our one-of-a-kind
community. In just the last few months, Greenwich, Connecticut has hosted world-class events like the Greenwich
Town Party, the second annual Greenwich International Film Festival and the Greenwich Art Gala.
So it comes as no surprise that the buyers are here. They are attracted to our short commute to New York City, low taxes
and great schools. Add to that our incredible waterfront and our parks and we've got that classic real estate top three
most important rules list, "location, location, location" covered.
Buyers are active but they have new priorities. The new trifecta: "value, value value." We are listening and so are our
successful sellers.
Here are some trends we are seeing as we move into the second half of 2016:
U.S. financial markets are positioned for stability. While the financial markets experienced a jolt as the quarter closed
and Britain decided to leave the European Union, the resulting swift comeback cemented the view that the U.S. financial
markets are considered a safe-haven among investors. All signs point to upside momentum for the second half of the
year.
Interest rates will be low like never before, likely enticing more buyers to participate in the real estate market. As
low as our rates are here in the U.S., many overseas rates are even lower. That has money flowing into our debt markets,
pushing down yields. According to Bankrate.com on July 1, 2016 the average rate on a 30-year mortgage was just 3.53
percent. According to their rate trend index, more than twice as many panelists believe rates will fall even more in the
short term compared to those who think they will rise.
Buyers want to join our community, but on their own terms. That means sellers who are unrealistic will be ignored,
and/or at risk for disappointing offers if they do come. While the historically low interest rates allow for more buying
power, many first-time buyers have no memory of higher rates, and feel no urgency to lock in a property as previous
generations have. Sellers are just starting to understand this new generation's thinking.
Greenwich inventories remain high, so sellers need to stand out in the crowd. There are great options for buyers who
have previously hesitated to make a move to our community because they simply didn't find their dream home. But the
many choices put pressure on sellers to present their properties as both great homes, and great values right from the
start.
Time is ticking very slowly. Days on market in our community is averaging 194 in 2016. That is the longest in at least a
decade. Sellers need to think equally about the desired sales timeline as they do about the desired price. Miscalculating
one will have a huge impact on the other.
Some regional statistics that we'd like to share..
In the Greater Greenwich area, single family homes at the lower end of the spectrum are seeing the highest sales.
In the entry-level under $1m range, sales are up more than 18 percent year-to-date. In fact, they are the only category
that has seen an increase in sales this year. Overall though sales are down close to 12 percent year-to-date in Greater
Greenwich.
The future looks very bright for the $2-3 million range, where pending deals have surged 58 percent compared
to last year. Properties priced above this range will face a challenging climate, and sellers will have to continue to be
strategic in the initial pricing and presentation of their properties. Buyers have this data as well, and are increasingly
selective. For example, in the $4-5m range a 60 percent increase in listings has led to a huge 50 percent drop in pending
sales, making it the price range with the lowest demand. Seller beware.
While the median price of a home in Greenwich is down close to 8 percent compared to a year ago, there are bright spots.
North of the Parkway, South of Post Road, Old Greenwich and Cos Cob are all seeing higher prices. North of the
Parkway the median sales prices was almost 25 percent at $2.4 million, year-to-date compared to 2015.It gets better
South of Post Road, where for the same time period the median sale price surged about 58 percent. Old Greenwich has
seen a 32 percent median sales price increase year-to-date.
In fact, in Cos Cob not only are average sales prices on the rise, but the number of homes sold compared to a year
ago has also gone up. Homes sold in Cos Cob rose 24 percent in the second quarter compared to the same quarter in
2015. The formula is clear: location + value. New members of our community want to be there because of the area's
emerging reputation as a destination for foodie's and interior design. That creates a value proposition that is driving
demand.
The pace of sales in the condo market is picking up. Days on market at 120 is the lowest in at least a decade. Sellers are
also getting closer to their asking price, which has inched towards 97 percent, also the best in about a decade. We believe
this reflects realistic pricing by sellers and delivering value to prospective buyers.
The sunny days of summer are a great time for our region to shine. We look forward to sharing all that is wonderful
about Greenwich with newcomers, and to serving our neighbors in this very special community.
Stephen Meyers
President and CEO
June Reports
Last week I was named one of "America's Best Real Estate Agents" by Real Trends. I would not have made such an elite list if it wasn't for the amount of people that subscribe to the blog and those of you who have chosen me to represent you in one of the most important decisions. It truly means a lot to me that your trust in me has given me the opportunity to be recognized in this way. Thank you. Please do not hesitate to email (jrandall@houlihanlawrence.com) or call (203-273-1034) if I can assist in any way.
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Jared Randall Join my Mailing List
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