New Canaan Weekly Market Update 5-13-2011

Posting last week’s New Canaan market update got away from me, which is a good thing. It means real estate was cranking along and I was introducing people to our wonderful town. Numbers have been up…not prices necessarily, but the number of properties selling. As of today there are 142 closed transactions, 75 additional properties with signed contracts and 11 homes with accepted offers. Here’s what’s been going on the past two weeks.
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So How’s the Real Estate Market in New Canaan?

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New Canaan Real Estate Agent Productivity 2010

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We know every real estate office touts their productivity numbers with a variety of claims and from a variety of sources….so I decided to do a little simple digging. I charted out the actual results as provided by the New Canaan Multiple Listing Service regarding number of listing/sales by office and the average dollar volume per agent.
This is raw data straight from the MLS and you do not need to adjust your screen or volume!
These numbers are not a new phenomenon for Brotherhood & Higley. Year over year we have consistently been at the top of both total number of listing/sales as well as agent dollar volume.

Market Trends for New Canaan Homes and Condominiums

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With the recent doom and gloom headlines “US new home sales plunge to lowest levels since 1963” and “existing single-family home sales — accounting for the bulk of transactions — were at the lowest since May 1995” the question I am constantly hearing is “How is the market“?. In reality real estate is local and the reported figures reflect the national trend with the numbers being dragged down by markets in the West and South and in areas such as Las Vegas and Albuquerque. The home buyer credit was not a determining factor in our market so it’s expiration should not affect up coming sales.

Contrary to what you are reading the real estate market has rebounded quite nicely in New Canaan and Fairfield County. Our supply of available housing has dropped and sales for the first half of the year have been brisk under $3 million. Even more encouraging is the increase of high end sale (homes over the $3 million dollars). Sellers with realistic listing prices have lasted fewer days on the open market and some homes have even gone to multiple bids. Look for a slow down in home purchases during the month of August which is traditionally a slow period for home buyers. After such a bustling spring the fall activity will be interesting to watch.

Click on the charts above to see an accurate picture of the New Canaan market for the year to date.

New Canaan Real Estate Acitivity 2010

If you have a blog I suppose you should be blogging!  Well, the past several months got away from me which should indicate to you all that real estate in New Canaan became quite active.

As is the norm our inventory tends to rise during the spring. Properties look their best, people come out of hibernation and buyers want to be settled in their new homes before the weather changes. In the first six months 148 houses and 41 condominiums were new to the market creating an available inventory of  242 single family homes and 69 condos.

By the end of June, 87 homes had sold and there are 52 pending. Currently there are 20 sold condominiums and 10 pending . That’s the real story. Sales. Some buyers are shaking off their hesitation and taking advantage of low interest rates and numerous choices. Click on the chart above to see the yearly sale comparison. 2010 is showing a marked increase over the past two years. And, as evident from the second chart, sale prices continue to be stronger in the $2 million and below range. However, there has been a noticeable increase in the over $2 million and $3 million range. Will have the mid year analysis up in a couple of weeks.

New Canaan Real Estate Prices and Sales

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Pending Sales, which are not included in this chart, continued to rise during the month of March which is traditionally one of the busiest for real estate transactions. Currently there are 29 single family residences and 5 condominiums under contract. Prices are up slightly, but on average still below October 2009 prices.
The month of April should post similar numbers as the spring market is in full swing. It will be interesting to see what it looks like after the tax credit expires although in our market that has not been a primary factor. Interest rates seem to be the driving force and with the end of the Fed’s MBS purchase program this will pressure the Bond prices lower and home loan rates higher. While it is encouraging to see selling prices up home owners should be cautious in interpreting the data. The key to selling in this market is sharp pricing.