New Canaan, CT (PRWEB) January 31, 2013
Brotherhood and Higley has completed their analysis of the 2012 real estate market in New Canaan CT, and has discovered important trends to watch for in the upcoming year.
The New Canaan market has stabilized. There were 300 transactions in both 2012 and 2011. This includes single family, condos, multifamily, land and commercial.
John Engel, a top selling Real Estate executive at B&H says “A closer look reveals that those 300 sales reflect a 9% decrease in total sales dollars, however the average house did not lose 9% value this year. Rather, that houses selling for less than $2 million are accounting for a large percentage of the market. The number of sales over $5 million is down by over 50% since a year ago.”
Important numbers for this past year:
2012 Single Family Homes:
Median Sale Price: $1.795 million compared to $1.795 million in 2011, even
Average Price: $1.652 million compared to $1.90 million in 2011, down 13%
Homes Sold: 223 homes sold in 2012 as compared to 214 a year ago, up 4%
Absorption Rate: 13.6 months of inventory to sell compared to 13.1, up 3%
Active Inventory: 182 houses for sale now compared to 196 a year ago, down 7%
Median Sale Price: $650,000 compared to $667,500 in 2011, down 3%
Average Sale Price: $717,000 as compared to $711,000 in 2011, up 1%
Condos Sold: 56 condos sold in 2012 as compared to 62 a year ago, down 10%
Absorption Rate: 8.6 months of inventory compared to 12.7, down 32%
2012 Land Sales:
“Land sales remain strong for the second year in a row,” said Judy Dunn Real Estate Broker at B & H, “again indicating an increased optimism on the part of builders and their customers.“ The median sale price for unimproved lots sold in 2011 was $700,000. For 2012 the median price rose 8.8% to $762,000 and builders continue to respond, buying 18 lots this past year compared to 19 last year. New construction starts continue to rebound; builders are buying land at a cost that makes sense to build, primarily midrange homes.
Seven Trends to Watch in 2013:
1. Home construction costs will go up as building materials like lumber, sheet rock and copper rise. Construction labor costs are also expected to go up this year.
2. With new home construction picking up the balance of home prices will continue to rise.
3. Mortgage rates will rise from their historic lows. The National Association of Realtors is predicting a gradual rise to 4% this year, up from the low of 3.5% that we have been seeing.
4. There will be fewer foreclosure bargains offered by the banks. The shock of 2009 is three years behind us and many of the distressed loans have been sold, refinanced and negotiated. New Canaan reports only 6 foreclosures in 2012.
5. Short sales are still out there and some economists have predicted that that the number of short sales will rise this year.
6. Should see more first-time home buyers this year. According to a National Association of Realtors survey this Fall 39% of borrowers are new to the market
7. Rents will continue to increase for the third year in a row. The supply of new apartments and houses has not kept pace with demand and that trend is expected to continue for the near future.
“In real estate there are neither “good” nor “bad” markets. The market is simply a function of supply and demand and the best agents in New Canaan are constantly monitoring these ebbs and flows,” said Hugh Halsell, President of Brotherhood & Higley, “underscoring the need to hire an experienced agent to get the best possible deal.”
Brotherhood & Higley, is a full service, locally owned, residential real estate firm established in 1926. They provide service throughout Fairfield County CT and are located at 161 Elm Street, New Canaan, CT 06840. For more information call John Engel at: (203) 966-3507
For reports like this throughout the year come visit the Reports page of our website, http://www.BHrealestate.com