The secret is out. The “Gateway to New England” is no longer a village to pass through on your way to other tranquil and picturesque New England destinations. In the last year, Greenwich real estate has been a prime destination in its own right. What is it that lures visitors to become permanent residents here? Why do so many children who grew up calling Greenwich “home” return when it’s time to raise their own families? Some love the rich history of a community that took root here more than a hundred years before the birth of our nation. Others love the coastal views and sailing in Cos Cob Harbor. Many enjoy the small-town charm of Greenwich Avenue, which gives a nod to its European influences. Others are happy that it’s a world away from the noise and bustle of nearby New York City.
Spend some time with a hometown real estate firm, such as Luxe Latitudes, and learn why they love to live, work, and play in Greenwich, Connecticut.
Evaluating the market
The 2020-2022 timeframe has been a wild adventure in the real estate market. The pandemic nearly brought relocation to a halt in 2020 as would-be sellers and buyers waited to see and understand what the future would hold. During the long quarantine time at home, it seemed people began to view their homes differently. No longer was it just the place where we retreated when work and school ended for the day, but home became the hub of our lives, and the ways we worked, learned, and played shifted.
When restrictions lifted and fear subsided, the long delays in relocation plans, coupled with shifted priorities and perspectives, caused an explosive appreciation of Greenwich homes for sale. Buyers craved cozy, multifunctional homes and wide open spaces. They sought homes that could serve as offices and classrooms, entertainment spaces and cozy places for relaxation. Homes on two (or more) acres seemed to outpace all other sales.
A look at 2019 versus 2022
Because the world came grinding to a halt in 2020, it is preferable to look at the real estate situation just before the pandemic to get a comparative sense of where the market is now. In 2019, Greenwich real estate was experiencing its sixth consecutive decline in sales. In September 2019, 213 properties were available for purchase at the price of $629 per square foot. The median list price was $3.43 million, and on average, it took 141 days for a home to sell.
Why do you need this information to understand the 2022 market? Looking at a longer view allows a clearer and more grounded perspective on where the market
has been the last eighteen months and forestalls any panic that might occur when
seeing short-term market shifts.
Comparing the September 2019 data with the September 2022 data, Greenwich real estate inventory is at an all-time low, with only 68 homes currently on the market. These limited finds are selling in only 48 days at $819 per square foot. The median listing price is $4 million. This growth is impressive and encouraging for those who are considering listing their Greenwich home for sale.
How is the negative chatter explained?
To understand what is happening in the market, let’s take a longer view of the data. Consider some of the statements doom speakers are making about the state of Greenwich real estate, and note the statistics-driven refutation:
- Home sales are declining dramatically.
- When there are fewer homes to sell, then the number of homes sold will appear small.
- Communities such as Riverside have less than two months of inventory supply. Homes in the $5-10 million price bracket have only seven months of inventory.
- The competitive demand for houses has been so great that many properties never made it to the MLS because some savvy buyers have been able to make purchases ahead of listings.
- Home values must be depreciating because the listing prices are declining.
- In April 2022, a sudden and brief spike occurred due to the sale of a limited number of high dollar luxury properties, causing the listing price average to surge. The current list price of $4.07 million is still 16% higher than it was in 2019.
- Whether you compare average sales prices or assessment ratios, houses have appreciated, across price points, at a minimum of 10% and up to an estimated 20%.
- The sellers’ market is coming to an end.
- At the peak of the post-pandemic real estate rush, 45% of houses being sold were tangled in a bidding war. This resulted in final sale prices 7.5% above listing price.
- Homes are selling at 97.6% of their original listing price, which could sound discouraging, but this is still 19% higher in actual dollars than the average prices of just one year earlier.
What’s next for Greenwich?
By virtue of the law of supply and demand, the continued lack of inventory will certainly keep prices high for the foreseeable future. Don’t let this discourage you from seeking your family’s new home among Greenwich real estate. Greenwich is a great place to live, and with some hard work and diligent seeking, you will find your place here.
Enlist the talents of a skilled real estate agent to help you navigate the uncertainties of a changing market and endless predictions. Choose an agent who can keep you abreast of changes in the market, seeks new listings to suit your family’s lifestyle, and works as your advocate and ally through the entire home purchasing process. Get in touch with Luxe Latitudes at 203.246.8395 and begin your journey to a beautiful life in Greenwich.
*Header photo courtesy of Shutterstock