Current Market Status

I want the opportunity to discuss the current Real Estate market in Greenwich, CT versus the broader financial crisis and what people should do with the money they have now taken out of the equity markets;

In this climate we are certainly seeing suppressed volume, lower housing prices and growing inventory. That being said, Year-To-Date (YTD) stats for the first Three Fiscal Quarters, tell us that the overall Greenwich Real Estate market has out-performed the S&P 500 and all other major indices as well as commodities like oil. With the growing volatility in the equity markets, investors are looking for safe havens such as gold, currencies and real estate.

For the First Three Quarters this YTD, there have been 328 single-family homes sold versus 488 for the same period in 2007, a drop of 32.8%. The Condominium Market has seen 105 units sold YTD versus 141 units sold the same period last year. Sales Volume ($$$) for residential single-family has seen a drop of approximately 35.9% versus the same period last year, while the Condominium market has seen a drop of approximately 31.2%.

The average Single-family home is down in price approximately 4.7% this year-to-date. The Condominium Market is down approximately 7.7% YTD. Although the average single-family home is overall down for the year, there are pockets of areas in Greenwich that are profitable investments: Riverside, a section of Greenwich between “Greenwich Proper” and Old Greenwich has seen 66 single-family units sold and an increase in average price of about 19.8%. Greenwich Mid-country single-family homes (South of the Merritt Parkway and North of downtown and Rt. 1) have seen 87 units sold and an increase of average sale price of 10.5% YTD.

What I want to discuss is how investing in Greenwich Real Estate is a great opportunity for an investor looking to diversify whilst still being conservative and avoiding volatility. With the many owners that have been living beyond their means and who will face a forced “down-sizing” or those who are looking to consolidate their living costs as a preventative measure in response to the current financial climate; The smaller single-family homes, condos and Multi-family properties become sought after for purchase and, in cases where people are affected by the difficulty to borrow money, rent.

Because of the large inventory and market slowdown, investors have the availability to pick and choose the best investment property while still being able to negotiate. Many property listing prices have not been lowered accordingly and paired with most owners increasing need/desire to sell, a savvy buyer can negotiate a great deal on a great property.