This past year was the second straight year of modest improvement for New Canaan real estate. While we are not back to our 2006 highs, we have experienced two consecutive years of volume and price appreciation.

The real estate market has stabilized.  We are getting more of the distressed properties sold and out of the bank system. It was predicted that Shadow Inventory (foreclosed or ready for foreclosure homes) would flood the market. Well, it never happened. Foreclosure filings in Connecticut dropped sharply in 2011 compared with the previous year, plunging 48%, according to RealtyTrac.

New Canaan saw year over year increases in every category, a trend suggesting a growing optimism on the part of buyers and sellers for 2012 market conditions. Here are some important numbers for the past year:

2011 Single Family Homes:

Median Price: $1.60 million as compared to $1.46 million in 2010, up 9.4 %

Average Price: $1.90 million as compared to $1.69 million in 2010, up 11.9%

Homes Sold: 214 homes sold in 2011 as compared to 195 a year ago, up 9.7%

Absorption Rate: 10.7 months of inventory compared to 15.38, an improvement of 30.4%

Active Inventory: 207 houses for sale compared to 236 a year ago, an improvement of 12%

2011 Condominiums:

Median Price: $657,000 as compared to $595,000 in 2010, up 12 %

Average Price: $711,000 as compared to $656,000 in 2010, up 8.2%

Condos Sold: 62 condos sold in 2011 as compared to 39 a year ago, up 59%

Absorption Rate: 7.88 months of inventory compared to 21.94, an improvement of 64%

2011 Land Sales:

Perhaps the most dramatic increase has come in the market for land sales, again indicating an increased optimism on the part of builders and their customers.

The median sale price for the 3 lots sold in 2010 was $1,025,000.  For 2011 the median price fell 31% to $700,000 and builders did respond, buying 19 lots this past year, an increase of 533% in volume.  New construction activity has picked up as a result; builders are buying land at a cost that makes sense to build, primarily midrange homes.

The rental market has improved. The absorption rate for rentals has dropped from 7.4 months to 4.1 months. That is how long the current inventory of properties would last at the current rate of sales. The number of rentals closed in 2011 increased 16.5% to 120 from 103.  And while the average rental price has increased 40% to $3550, the median rental price has increased 162% to $4200.  The rental market tells us a good deal about the broader market. The reduction in the rental inventory and higher rental rates is due to a number of reasons; tighter lending requirements, people’s damaged credit, loss of equity hence the inability to produce a down payment, job insecurity and the continued lack of confidence in the overall economy. For some it is a wait and see before purchasing.

The rental market is starting to produce much better cash flow and investors are actively purchasing more rental real estate.

Interest rates broke their historical lows of 2004-2005. The rates on average are about .5% to .75% below last year rates. A sample of rates as of first week of November 2011 with zero points: Loans under $417K=3.87% (conforming loans). Loans between $417K to $625K=4% (this is the new Jumbo conforming) Loans above $625K=4.5% (this is Jumbo loans). $729K  is no longer the jumbo loan limit.

This year was a much better year than last year and we expect it to continue to get even better next year.  The reason?  We’re experiencing an improving economy, low interest rates and an upcoming presidential election. Historically, presidential elections bring about increased real estate activity, and coupled with low interest rates and increasing consumer confidence, it will help the New Canaan market to continue to grow in the coming year.

Finally, it is always important to bear in mind that in real estate there are neither “good” nor “bad” markets.   The market is simply the market and value is ultimately a function of supply and demand.  In the current market cycle, as we see an alignment between the expectations of buyers and sellers, the statistics are encouraging.  But while statistics provide a snapshot of the marketplace there is no substitute for the full picture.   For reports like this throughout the year come visit my website, http://wendyfog.com  and please call me.

Wishing you and your family a prosperous 2012!

This new update comes courtesy of Debra Boyle, Senior Loan officer at at PNC Mortgage in Fairfield Connecticut. How many transactions have included items such as these?  Worth paying attention to.

” While Personal Property given to the buyer or purchased by the buyer from the seller has always been considered a Sales Concession, there is now greater emphasis and guidelines mandated by Fannie and Freddie Mac,  impacting  purchase transactions.

Personal property is defined as any item not permanently fixed, such as furniture, curtains, curtain rods, TV’s, pool equipment, etc.

Any item defined as personal property that does show on the contract  will need to have a third party value, ie. E- Bay. If a large percentage of furniture,  a qualified  independent company will have to asses the value.  In either case the value ascertained will be deducted from the Sales Price,  impacting the down payment, LTV and  the timeliness of the transaction.

Deleting the  personal property and or initialing and crossing off the contract is not ACCEPTABLE either!  Such action will imply that the items crossed off or deleted are being sold and not considered as a sales concession.  In this instance a bill of sale and proof of payment will be required!

ADVICE . . .   Any personal property that is being given or sold to the borrower KEEP OUT of the contract, binder, and or sales memorandum!
Utilize a separate addendum to show sale or donation of personal property! ”

Main entrance to Hatfield Mews

Having divided, sold and bequeathed some of the acreage through the years, this parcel was spun off  in the mid 1960′s to developer George R. Platt. “Hatfield Mews” was then created into a 16 unit co-op complex and still includes the original 1920′s stone carriage house as one of it’s residences. With brick and masonry exteriors, these two story Georgian style townhouses have  2 to 3 bedrooms, terraces, gardens and fireplaces. Many of the co-ops have been renovated and updated including finishing out the lower level for additional living space and storage.  The individual garages are detached with additional parking available.  A short walk puts you right in the middle of everything the village of New Canaan has to offer including easy access to the train station.

Hatfield Mews townhouses

Private Terrace at Hatfield Mews

Canaan Close has 35 condominiums situated on 7 acres along the Five Mile River. These condos are nice and generous in their finished living space, ranging from approx. 1,800 sq. ft  to 3,000+ sq. ft.  They have fireplaces, 2 -3 bedrooms, over sized rooms, abundant windows, sliding glass doors to terraces and decks overlooking the gardens, ponds and river.  Many have gone through renovations with a few still needing some updating of kitchens and baths.

The grounds of Canaan Close

The brick exteriors appear a bit dark and the look more contemporary than other complexes, but the units blend into the landscaping. The developers tried to capitalize on the topography and create some privacy for owners, especially with the units in the back, with mature plantings, private gardens, walking trails and reflecting ponds.  The grounds also have a heated pool sited along the river and a gazebo for outdoor entertaining, .

Canaan Close Condominiums

Information contained herein is deemed reliable but is not guaranteed and should be independently verified.

The Georgian style condominiums of Prides Crossing

Sited on a gentle knoll, each condominium enjoys a private fenced courtyard/garden, parking and the use of the complex’s private clubhouse and pool. Many of the units have been updated with architectural detail, renovated eat-in kitchens, baths and finished lower levels. Prides Crossing traditionally enjoys strong resale with 7 units selling in the past two years. There are two units currently available, each with approximately 1,600+ square feet of living space, eat-in kitchen, 3 bedrooms,2 1/2  baths and one car garage.

Prides Crossing pool and clubhouse

The Entrance

Information contained herein is deemed reliable but is not guaranteed and should be independently verified.

Mortgage rates were up sharply this week, bouncing back from record lows following the release of a better-than-expected jobs report, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.

While forecasters expect rates on 30-year fixed-rate mortgages will stay well below 5 percent through 2012, strong economic growth could trigger a faster rise in long-term interest rates, including mortgages. Freddie Mac said rates on 30-year fixed-rate mortgages averaged 4.12 percent with an average 0.8 point for the week ending Oct. 13, up from 3.94 percent last week, an all-time low in records dating to 1971. At this time last year, the 30-year FRM averaged 4.19 percent before climbing to a 2011 high of 5.05 percent in February.

If 2012 is another year of slow economic growth, the MBA predicts purchase loan volume will again remain below 2010 levels, rising only slightly to $412 billion. Not until 2013, when the economy is expected to pick up steam and home sales and prices are expected to increase, will purchase loan demand show solid growth, increasing to $770 billion for the year, the MBA said.

If an economic recovery remains subdued, the MBA expects rates on 30-year fixed-rate loans will average just 4.4 percent during 2012 before climbing to 4.9 percent by 2013.

While mortgage rates continue to remain affordable, a crystal ball would be more helpful.

Source: Inman News

The New Canaan real estate market has been an interesting ride this year with fits and starts. Record low interest rates and realistic listing prices have resulted in increased sales within the higher price ranges. Of the 179 single family homes sold so far, 6 have sold over 5 million, 7 houses have sold in the 4 million bracket and 17 have closed over 3 million. In 2010 there were a total of 17 homes that sold over $3 million dollars. Land sales have also increased with 25 lots sold to date and ranging from $275,000. for a .12 acre parcel on Sunrise to $1,550,000 for 2 acres on West Road. The majority of sales in this category are end users with only a few builders dipping their toes back into the waters of spec. building. Condominiums sales are on par with last years numbers with 40 units closed to date. However, no sales have occurred over $1 million dollars compared to last year where a total of 43 units sold with 3 condominiums selling over that number. In addition, there are 24 properties currently pending which should close in the next month or two.

The  fall real estate sales are also ones to watch. They start right after Labor Day and goes through to Thanksgiving. Buyers are out looking and kicking tires, but the volatility in the stock market and general uncertainty is slowing down a traditionally healthy market place.

In the scheme of things Elm Street is a relatively new road. Park Street, “the Postroad to Stamford” and Main Street, “the Road to Darien” date back to the days when New Canaan was Canaan Parish (founded 1731), but it was not until the 19^th century that they were connected by crossroads. Maple Street and Cherry Street were opened up in 1825 and 1826 to encourage residential building. When Elm Street was laid out in 1848 as the third crossroad from Park to Main it was known as Trade Street. Tradition holds that Elm Street was named by William Dann, who arrived from Stamford in 1851 to open up a grocery store and livery stable on the south side of the first block on the new road. When ordering an announcement card for his businesses Dann was informed by the New York printer that they must have a street address. Until then, few New Canaan roads had names. So Dann coined the name “Elm Street”. The naming of Cherry and Maple followed shortly after.

The first block of Elm (between Main and South Avenue) provided new business sites and opportunities. But Elm Street in the next block presented a considerable challenge for building and traffic. Just west of South Avenue the road rose in a short steep hill, steep enough to provide a good coast down to Park and to pose difficulties for heavy horse-drawn wagons, such as those The Hoyt Nursery sent loaded with trees to be shipped on the railroad cars. In April 1889, with no power machinery available, the highway crews began the back breaking job, with picks and shovels, of “downgrading” the Elm Street hill. Blasting often was necessary to break through the rock ledge. The roadbed was lowered by several feet while Main Street was raised by the loads of stone and gravel deposited by horse drawn dump carts.

Once the first trains ran into New Canaan on July 4, 1868, Elm Street was rechristened Railroad Avenue in honor of the town’s new pride and joy and would retain that name for the next 68 years. But as businesses grew and the population expanded the town’s community leaders felt the name “Railroad Avenue” conveyed no impression of the neat colonial atmosphere that the street has achieved. So in 1936 the name “Elm Street” was officially restored.

By 1926 New Canaan was a fast growing community. People were moving in, summer residents from New York came in droves and there became a demand for new services and businesses. The creation of the red brick and white trim Playhouse, designed and built in 1922-1923 by New Canaan architect Calvin Kiessling, established the “colonial” look of Elm Street which was maintained in future expansion. Kaiser & Deforest had applied for a permit to put in a filling station (where Mobil is now) north of their garage at the corner of South Avenue and Cherry Street. A new plant west of the Playhouse was being constructed to house the New Canaan Advertiser and John McGrath’s taxi service.  When Brotherhood & Higley Real Estate began business in 1926, Elm Street (called Railroad Avenue then) presented an almost rural scene in the block between South Avenue and Park Street. On the south side of the block there was just one house, which sat high on a bank. On the north side was only the Playhouse of New Canaan and the real estate office of John Brotherhood which sat all by itself diagonally across from the railway station at the corner of Elm and Park.

The village of New Canaan continued to expand. By 1936 the Colonial Building had been erected, a lease had been signed by First National’s  grocery store (today the Whitney shop), and the south side of the street housed the Mar-Ken’s restaurant,  A&P’s liquor store, Totaro’s fruit and vegetable store (shared with Pia’s meat market), Seymour’s gift and stationary store, a dress shop and the Colonial Barber Shop. Upstairs offices included three dentists, three architects, two construction companies, a lawyer and the New Canaan Water Company. By itself, down the block, was Albert Franco’s grocery and liquor store and at the corner was a Texaco filling station (now Starbucks). It’s hard to image four grocery stores on the south side of Elm Street.

Businesses have come and gone and moved from one Elm Street site to another, but the blocks between South and Park retains much of its colonial appearance. Surrounding the stalwart establishments of Franco’s (now Franco’s Wine Merchant), Brotherhood & Higley Real Estate and the Playhouse, businesses continue to thrive and transform. Second stories have been added to many of the buildings to house a plethora of enterprises and companies. Restaurants, pharmacies, boutique shops and mainstream retailers have all taken advantage of one of the few “walking towns” left in Fairfield County.

Thanks to remarkable people like Mary Louise King and countless others who put down on paper their recollections and organized numerous records we have a treasure trove of accounts and descriptions of this “quintessential New England” village. Taking great license with their work the proceeding information was culled, copied and condensed from sources acquired from the New Canaan Historical Society.

Having lived in New Canaan off and on for the past 22 years I finally spent some time in the New Canaan Historical Society’s incredible and extensive library. Through the years our family has explored their museums, attended some of their educational programs and enjoyed their annual and time-honored “Ice Cream Social” . This time my original mission was to research a house I was listing. Before long I was off on other tangents; exploring the amazing archives for photographs and stories of this wonderful town as well as the history of the firm I work for (Brotherhood & Higley). Thanks to remarkable people like Mary Louise King and countless others who put down on paper their recollections and organized numerous records we have a treasure trove of accounts and descriptions of this “quintessential New England” village. Taking great license with their work and plagiarizing some of their copy I respectfully will submit a few fascinating tidbits of our town. Please visit and become a member of the New Canaan Historical Society. http://nchistory.org/index.html  ”History ought never to be confused with nostalgia. It’s written not to revere the dead, but to inspire the living.”  - Simon Schama