Westport, Connecticut Moves

Westport CT Market Report- Single-Family Home Sale Trends

Tue, 24 Jan 2012 12:39:02 -0500

As we begin the new year, the crystal balls have come out and there have been a wide range of predictions for how the housing market will perform in 2012. I have read that this year we will see a minor recovery, that pent up demand will drive a major recovery, that prices will fall through the first half of the year but pick up, starting in June, that prices won't begin to rebound until 2013, and so on. You get the picture.

While overall forecasts may be useful in determining the state of the economic recovery, they are not really relevant for the home buyer or seller. The numbers that should be important to them are the statistics for their local market.

According to NAR, 2007 existing home sales posted the largest drop in 25 years, while in Westport, this segment showed a 6% gain. The precipitous drop did not hit Westport until 2008, when a third fewer single-family homes (existing and new construction) sold, compared with the previous year. By 2009, only half as many homes sold, than in 2004. The downtrend was not as steep for prices. Median sale price peaked in 2007, at $1,400,000 and only showed a 4% decline, the following year. By 2009, however, median sale price fell to $1,188,500, below 2005 levels.

The trend line for unit and dollar sales began to diverge in 2010. That year, the number of Westport single-family homes sold surged 40% vs. 2009, although remaining considerably below the highs posted in the first half of the decade. 2011 sales were relatively flat, with only a 2% decline. At the same time, median sale price continued to trend down.

The median sale price for a single-family home was $1,085,625, in 2011, roughly equal to the median selling price in 2004. At this point, there is no evidence that prices are rebounding, any time soon.

This data is compiled from the Consolidated Multiple Listing Service and may not always be accurate. No warranty is made as to the accuracy of this information. You should verify any information that is important to your buying.

Westport, CT Market Report - A buyer's market....or not!

Mon, 16 Jan 2012 18:41:10 -0500

One method for assessing the activity of the housing market is by calculating the absorption rate. The rate is determined by dividing the current number of active listings by the average number of homes selling each month. The resulting figure shows the number of months it would take to sell the existing inventory of active listings. A normal or balanced market would have a five to six month supply of homes. A seller's market, reflecting a limited number of homes for sale, would have a one to four month supply. A supply time of seven months or more would indicate a buyer's market.

Supply Time           Market Description
1 to 4 months           Seller's Market
5 to 6 months           Normal Market
7 months or more     Buyer's Market

Using the preceding twelve months as a determinant for calculating average monthly sales, the current absorption rate for Westport single-family homes is 8.8 months. According to the above chart, this would indicate that Westport is currently in a Buyer's Market. However, as the case with most averages and generalizations, they rarely tell the whole story.

Analyzing the data by price point gives a clearer picture of market activity. The overall absorption rate for homes listed at $1 million or less is 4.6 months. While a few price ranges in this segment have supply times above a normal market, there is generally limited inventory, creating a seller's market at the lower end. At the same time, there is an abundance of inventory for homes in the higher price points. There is a two and a half year supply of homes selling at $2.5 million or more. The absorption rate for listings priced $4 million or more is thirty-nine (39) months, or over three years.

Westport, CT - 2011 Housing Market Report

Fri, 13 Jan 2012 13:29:03 -0500

The Westport housing market ended on a ho-hum note. On an annual basis, single-family home sales were off two percent (2%) compared with 2010. While unit sales remained comfortably ahead of 2008 and 2009, they were well off the highs posted in the previous decade.

Prices continued to soften. The median sold price of a single-family home, for 2011, was $1,085,625. This represented a five percent (5%) decline from the 2010 median sold price of $1,145,000. The bulk of the sales were for homes selling between one and two million dollars. This segment represented forty percent (40%) of total units sold, for both years. However, the shape of the market changed at the extreme ends. Only half as many homes sold for $4 million or more, in 2011, compared with a year ago (7 vs. 14.) At the same time, two and a half times as many homes sold under $400,000, this year.

Despite devastating snowstorms that brought activity to a halt, previously negotiated transactions managed to close during the first quarter of 2011 and units sales of single-family homes remained flat compared with 1Q10. Pent up demand took hold during the second quarter of the year. Units sold surged thirty-two percent (32%) vs the comparable period, a year ago. The second half of the year was a disappointment. Seventeen percent (17%) fewer homes sold during the third quarter, while fourth quarter totals fell twenty-two percent (22%.) As a percentage of total single-family homes sold, the fourth quarter of 2011 posted the smallest contribution to annual sales since 2005.

Single-Family Home Sales - 2011 Statistics

Unit sold - 344
Average Sold Price - $1,338,229
Median Sold Price - $1,085,625
Highest Sold Price - $6,300,000
Lowest Sold Price - $215,000
Average Days on Market - 105

Westport - November Trick-or-Treat

Fri, 04 Nov 2011 20:12:55 -0400

It's not nice to fool blame Mother Nature

Last week, a rare, late October snowstorm blanketed much of the northeast. Connecticut was among the hardest hit states. At the peak, over 800,000 Connecticut customers were without power. Many Westporters (myself included) dodged the bullet, as the town suffered a relatively small, 22% outage, far less than most of the surrounding communites. Those who lost power, however, were without it for most of the week and earlier today, there were still over 100 Westport homes where power had not yet been restored. The storm wreaked havoc, affecting public transportation, causing school closings, and messing up sports scheduling. But, my beef was with Mother Nature disrupting Halloween and I decided to write a post about it.

I had just gotten past the part where I accused Mother Nature of acting like the grinch witch that stole
Halloween, when the lights went out!

I couldn't believe it, no visible trees or lines down, but a visit with my neighbors confirmed that my street was, indeed, without power.

It's not nice to fool blame Mother Nature!

Needless to say, my unfinished post disappeared, along with the lights. The current power outage map now shows 266 Westport customers without power. According to a power company recording, our power won't be restored until Sunday, at 11 P.M. I'm hoping that's a canned message that people have been hearing, all week and by some miracle, my lights will reappear, shortly. In the meantime, with the generator noise rumbling in my ear, I'll try to finish this Halloween tale.

Westport - November Trick-or-Treat

The storm dumped a heavy, wet snow which weighed down tree branches that had not yet shed their leaves. The result was lots of large tree limbs and wires down, throughout town. Although most Westport residents still had power, for safety sake, town officials joined with the towns of Weston, Wilton and Norwalk in urging Halloween revelers to postpone their trick-or-treating until Saturday.

In an effort to make up for the disappointment of postponing Halloween, Westport first responders have invited Westport trick-or-treaters, in costume, to stop by the Westport Police department (50 Jesup Road) between 4 and 6 P.M, Saturday. Members of the Police Department, Fire Department, Emergency Medical Service and Police Athletic League will hand out Halloween treats. Prizes will be awarded for the best costumes.

Trick-or-Treating at the Police Station - Now that's what I call a Scary Halloween!

Rosh Hashanah 2011

Wed, 28 Sep 2011 16:43:47 -0400

ROSH HASHANAH
September 28, 2011

This evening begins the 2-day celebration
of Rosh Hashanah, the Jewish New Year.

For all those who celebrate this holiday,

L'Shanah Tovah Tikateivu

I wish you a Happy, Healthy and Prosperous
New Year.

Real Estate Statistics – Go Figure! - part 2

Tue, 27 Sep 2011 22:33:29 -0400

Real Estate Statistics – Go Figure!
Part 2

Drilling Down the Numbers

Unit Sales is a pretty straight forward statistic. However, when determining trends, it is important that the comparison be apples to apples (e.g. single-family homes to single-family homes, condos to condos, antiques to antiques, etc.) Since real estate sales are seasonal, trends are more accurately portrayed by comparing statistics with comparable time periods for the preceding year(s), whether monthly, quarterly or year-to-date, rather than with previous months or quarters.

Listing and Selling Price figures have a few wrinkles to them. The listing price used in most calculations is the current asking price or price in effect when the sales transaction was negotiated. It does not take into account price reductions taken during the current listing, or original listing price for previously expired or cancelled listings. Although some may argue that the earlier prices are irrelevant because the market has determined the correct price, knowing at what price(s) a house didn’t sell may be illuminating when pricing your home.

The listing price to selling price ratio is also affected by use of the most recent listing price. The figures may show homes selling at 95% of asking price, while the percentages might drop to 80 or 85% if applied to original asking price. Taking into account how long the house has been listed, how the price compares to similar properties and what the average sale to list price ratio is, can provide guidance when deciding on an offer price.

One ongoing debate concerns the use of Average vs. Median sales data. Average selling (or listing) price may be skewed by the inclusion of exceptionally low or high priced properties. The distortion is flattened in markets with a large number of transactions. In a smaller market, one aberrant sale can incorrectly indicate the decline or acceleration of the market.

Using the median sales price eliminates the distortion caused by an extreme data point because it simply reflects an equal number of sales above and below the median price. However, median price may still offer misleading information about market trends because it may simply be reflecting a change in the “shape” of the market rather than the direction of prices.

Take a situation where there is an abundance of inventory at the upper end of the market, causing prices in this segment to drop sharply. Consumers taking advantage of lower mortgage rates and falling prices purchase a disproportionate number of larger homes. Median sales price increases because there are more large homes sold, while the reality is that prices are declining.

Days on Market is another statistic that may not paint a true picture. The market time reported is only reflective of the current listing. Adding days on market of previous listings presents a more accurate figure. Some MLSes now offer a total market time statistic

The Bottom Line

Most certainly, the statistics that you receive will be true, but the important question is, will they be accurate? Understanding the underlying makeup of the numbers and the factors that affect them, will guide you in asking the right questions. Being able to accurately interpret the data will enhance the decision making process. Working together with an informed market expert will enable you to make the best use of the information. As Sy Syms says, “An educated consumer is our best customer.”

Real Estate Statistics – Go Figure!

Mon, 26 Sep 2011 17:48:31 -0400

Real Estate Statistics – Go Figure!

part 1

“Figures don't lie, but liars figure.” Mark Twain The saying portrays an ironic or perhaps cynical viewpoint of the way statistics are used to shape our decisions. While it is true that numbers can be manipulated to misrepresent a given condition, often, it is an innocent misinterpretation that leads us to draw inaccurate conclusions.

The Housing Market

Every month, various agencies in the United States release a series of economic indicators, including data on the housing market. The most commonly broadcast statistics include housing starts and building permits (NAHB), new single-family home sales (U.S. Census) and existing-home sales (NAR.) Because of different methodologies employed, reports may appear to present contradictory trends, for any given month.

The U.S. Census Bureau’s new single-family home sales is based on signed contracts and/or deposits received. Existing-home sales, including single-family homes, co-ops and condominiums, is released by NAR (National Association of REALTORS®), which bases it’s sales data on closed transactions. Since it typically takes a month or two (or more) to go from contract to closing, the market may shift direction during that period.and the two monthly reports may seem to show opposite trends.

All Real Estate is Local

While understanding the discrepencies may be interesting, the truth is that none of the reported figures may be of any value to the individual consumer. Although the full reports do refine the data further (e.g. NAR breaks out statistics for single-family homes, and by region), the headlines presented by the media reflect national information. For the home buyer or seller the only pertinent information is local information.

There is an abundance of information available to help determine trends and values, when making decisions about purchasing or selling a house in your local market. Among these statistics are unit sales, average asking and selling prices, median asking and selling prices, average days on market, listing price to selling price ratio and months of inventory. However, just as with the national statistics, accepting the numbers as presented without drilling down further may lead you to draw erroneous conclusions.

next..Part 2 Drilling down the numbers

Westport, CT - Caution, Falling Trees

Tue, 09 Aug 2011 15:18:08 -0400

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Adding to the charm of Westport. CT are the stately trees that line our roads and grace our yards. Along with the beauty of wooded properties, however, comes the potential disruption and danger caused by falling trees. The most common occurrences happen during major storms, when fallen limbs routinely cause power outages. Three times, early this summer, trees fell on motorists on the Merritt Parkway, in Stamford, Westport and Fairfield, in one instance resulting in a fatality.

Of course, trees can also fall on fair weather days, especially if they are diseased or damaged. So, we were less than thrilled to notice a tall tree, in our front yard, leaning at a precipitous angle. On further inspection, we found that the trunk of the tree was split open.

On the one hand, we hoped that mother nature would take care of it, during the next storm, with the surrounding trees cradling it and breaking its fall. but, there were too many ifs in that scenario. So, it was time to call in the tree service.

The first step was a ride, up in the bucket, to trim the extra branches.

With a clear path, the tree was taken down.

That was followed by more

trimming and chipping

stump grinding

and cleanup

Now we just have to plant some new grass!

Westport CT - Boating Season 2011...Finally Arrives!!

Fri, 13 May 2011 13:51:06 -0400

Westport CT - Boating Season 2011...Finally Arrives!!

As weeks of cool weather persisted, it felt like spring would never take hold. However, if recent activity at Saugatuck Harbor Yacht Club, in Westport, is any indication, boating season 2011 has finally arrived in Connecticut.

Waiting to be uncovered

Painting the bottom

Varnishing the teak

Polishing the fiberglass

Ready to go

Westport, CT - Last Licks at the Beach!

Thu, 17 Mar 2011 17:02:53 -0400

Westport, CT - Last Licks at the Beach!

It was a glorious afternoon for getting in Last Licks, at the beach.

Compo Beach rules say:
"NO ANIMALS ARE ALLOWED BEYOND THIS POINT FROM APRIL 1ST - SEPT 30TH."

In the meantime, there's still time for a friendly run.

And, what's a day at the beach, without a dip in Long Island Sound?

Only 2 weeks left at the beach, but all is not lost.

Westport canines have their own "Doggie Park" (aka Winslow Park),

in which to romp around, all year long.

Deja-Vu, All Over Again!

Sun, 27 Feb 2011 13:37:15 -0500

This morning's post by Lenn Harley,

GEEZ! IS IT GOING TO BE 1973 ALL OVER AGAIN? I SUSPECT NOT!

got me thinking we've been here before. No wonder, I had written a post about the effect of spiking gas prices, in 2008.
____________________________________________________________________________

High Gas Prices- its effect on the real estate business

I moved to Connecticut in October, 1973, just in time for the oil crisis. The crisis was the result of an oil embargo by Opec member nations, plus Egypt and Syria, to punish those countries that had supported Israel, during the Yom Kippur War.

The immediate effect was not only a spike in prices, but a shortage of available gasoline, at the pumps. "Filling up" became a carefully planned event. If you had an odd-numbered license plate or a vanity plate, you could purchase gas on odd-numbered days. Even-numbered plates could purchase on even-numbered days. The 31st of the month was open to all. In addition to knowing which day you could buy gas, you would also have to be prepared to wait in line for as long as two or three hours.

In February 1974, the government proposed Project Independence, a plan to make the United States energy independent. In March, the embargo was ended by all the participating nations, except Libya. Gasoline prices, which had averaged 35 to 38 cents/gallon, during the spring of 1973, surged to 55 cents/gallon, in June 1974. With the lifting of the embargo and the rise in price, the gas shortage disappeared. Apparently, so did our plan for energy independence. Prices spiked, again, in 1981, as a result of the Iran Iraq War, but it was not accompanied by a gas shortage.

From the mid 1980's, until September 2003, the inflation adjusted price of crude oil was under $25/barrel. After that, there was a steady rise, to just over $99/barrel, by Nov 2007. During the first half of 2008, oil prices continually set record highs. Prices touched an all time high of $147.27/barrel, on July 11, Prices have abated, somewhat, and the national average for regular-grade gasoline is expected to average $3.84, in 2008.

Although average prices vary from state to state, one thing
is certain. Higher prices are here to stay. Connecticut gas
prices are the second highest, in the country, behind
California. Driving away from the pump, with a tab for $50,
$60 or even $70 is taking a toll on everyone.

Higher gasoline prices appear to be having an effect on how
real estate business is being conducted. Fewer agents are
going out on Broker Tours. Agents are coming into the office,
less frequently. Many show up only when they have phone
duty, need to file paperwork or attend a meeting. Some
agents are reluctant to service rental clients, instead referring
them to the listing agent. Yes, I know, those renters may be
next year's buyers, but this year's low ROI is the more
immediate problem.

REALTORS® are more discerning about the buyers with whom they choose to work. Driving around with tire kickers is just too expensive. In some cases, agents may be demanding that their buyers be pre-qualified, before getting in the car. For sure, agents still have a fiduciary responsibility to do the best job possible, for their clients. However, nowhere does it say they must work with every Tom, Dick and Harry.

Perhaps, we as agents will start to conduct our real estate activites, more like a business, which it is. Certainly, the use of our cars is an integral part of our business. We still need to service our listings, putting on keyboxes, hosting Open Houses, checking out new competitive listings and sometimes meeting with our homeowners, to review and counsel them. We will continue to conduct town tours, for our relocation clients. We obviously need to drive our buyers, to see the homes they want to visit. Perhaps, however, by honing our upfront interview skills, we can do a better job of selecting the homes to see and spend less time viewing inappropriate properties.

Ultimately, if the cost of doing business becomes too high, our ranks may diminish. What's happening in your market?

High Gas Prices- its effect on the real estate business

Fri, 25 Jul 2008 21:17:57 -0400

Although average prices vary from state to state, one thing is certain. Higher prices are here to stay. Connecticut gas prices are the second highest, in the country, behind California. Driving away from the pump, with a tab for $50, $60 or even $70 is taking a toll on everyone.

Higher gasoline prices appear to be having an effect on how real estate business is being conducted. Fewer agents are going out on Broker Tours. Agents are coming into the office, less frequently. Many show up only when they have phone duty, need to file paperwork or attend a meeting. Some agents are reluctant to service rental clients, instead referring them to the listing agent. Yes, I know, those renters may be next year's buyers, but this year's low ROI is the more immediate problem.

Ultimately, if the cost of doing business becomes too high, our ranks may diminish. What's happening in your market?

Wordless Wednesday: Westport, CT - Snowhere to go!!

Wed, 12 Jan 2011 11:40:44 -0500

Westport, CT - Snowhere to go!!

Woke up this morning to amazing snow totals

Won't be grilling, anytime time soon

Cleared the driveway, but not going anywhere - Road not plowed!!

Happy Hanukkah!

Wed, 01 Dec 2010 16:17:55 -0500

Happy Hanukkah!

Wishing all who celebrate, a wonderful Hanukkah filled with

Latkes (Potato Pancakes)

Dreidels (Spinning Tops)

Hanukkah Gelt (yes, those are silver dollars)

Wordless Wednesday: Westport, CT - 5 Months to Boating Season

Wed, 17 Nov 2010 17:17:52 -0500

Westport, CT...5 Months to Boating Season

Photograph taken with a Point and Shoot Nikon, Coolpix S1. Photo displayed taken by Marilyn Katz and is covered by Copyright, all rights reserved and may not be reproduced without express written permission.