EXECUTIVE SUMMARY 

FIRST QUARTER 2018 

Houlihan Lawrence remains the #1 brokerage in Greenwich, Connecticut. We love our community and we appreciate all the support we receive from our agents, clients, friends and neighbors. Real estate is personal. We enjoy creating personal strategies for each client based on their needs. We watch the big picture trends, and then make sure we integrate what matters into our plans. 

Right now, there is a lot to watch. 

One is the weather forecast. Fortunately, the worst of the cold weather seems to have passed. Mother Nature played a bigger role than usual in the past three months, and the Nor'easters did impact buyers interest in seeing homes during storms. Part of the calm after those storms will likely be pent up demand to get out and see the properties that are on the market. Buyers have been waiting, and will be ready if they see what they want.

The financial markets and the politics that are at times the drivers of market activity remain a focus. There is a lack of clarity and a high degree of uncertainty in our nation's capital. That is keeping the financial markets on edge, resulting in extreme volatility in the first quarter of the year. The S&P 500 recorded its first quarterly loss since 2015. Market performance, and the impact on buyer's confidence, is something we will continue to monitor closely. 

Changes in the tax law will also likely impact our markets. While interest rates have remained low for longer than many had expected, buyers will be able to deduct interest on only $750,000 of a mortgage loan, down from $1 million. The more limited property, state and local tax deductions also add to the cost of home ownership for many potential buyers. 

For our business, we are proud to have been involved in the majority of the biggest sales in the first quarter of 2018. Prices rose overall in the area, in large part because of the sale of well-priced luxury homes. Buyers responded to value, and the success of that strategy is universal. While sales were down compared to 2017, they were better than in the previous 8 years. Looking forward, we do see improvement in pending deal activity. That is a sign of good things, and good sales, to come. 

Here are some trends that we are seeing for the spring season: 

We are mindful of the headwinds we are facing. Of course, the literal ones we referenced above with respect to the weather. But also the reality that home sales did decline in the first quarter in Greenwich. Buyers are taking their time and waiting for not just the right property, but the right property presented in the best light, and at the right price. 

Think like a buyer. Strategic, realistic and value driven initial pricing is the absolute best way a seller can gain an advantage over similar properties in this competitive market. If buyers don't get the right first impression, they don't come back. There is rarely a second time at bat. 

Social media trends and influencers impact our markets and reveal opportunities. A Bank of America study showed that as Millennials are seeing more photos of homes of their friends on Instagram and Facebook, they are becoming more interested in also becoming buyers. They found that twenty-five percent of the Millennials surveyed had #FOMO, short for fear of missing out. Twenty-three percent were jealous of the homes bought by their friends and acquaintances. According to the National Association of Realtors (NAR), Millennials make up sixty-five percent of all first-time home buyers.