Real Estate Report: 2Q Suggests Optimism & Caution

By Judy Szablak

UPDATE (corrects some statistics) The second quarter has traditionally been the most active real estate selling season of the year. This year, the number of Westport sales has more than doubled over the last quarter—a strong showing despite the economy.
This seaside contemporary on Saugatuck Island is listed just under $2.15 million. (CLICK TO ENLARGE) Photo courtesy of William Pitt Sotheby’s International Realty

Westport not only benefited from its reputation as one of the finer towns in Fairfield County, but also from increased activity with the start of the home buying season. Probably an additional factor this year was sellers seeking to avoid increased state-mandated conveyance tax closing costs effective July 1.

The 125 sales easily surpass the 97 sales reported during the same quarter in 2010. (An earlier version of this column inadvertently said the 125 sales were in June.)

A review of the past decade of data shows that while we should expect an increase in sales for the month of June, this year’s 29 percent jump over last June was unusual.

Other southwest Connecticut communities experienced similar increases, also likely due to the change in the conveyance tax.

Looking ahead, the month of July is pivotal. It is too early to tell whether the sales levels that we have seen are going to continue their seasonally-adjusted rise.

There is no doubt we reaped the benefits in recent months of motivated sellers due to the conveyance tax increase coupled with the beginning of the buying season.

If the interest rates stay at or close to their current levels, and we continue to show gains for the month of July, we should do well for the rest of the year.

Average sales prices for this quarter of $1,343,538 still have a lot of catching up to do after its second quarter peak in 2008 at $1,654,202. However, the average market time to sell a home has not been this good during the second quarter since 2002. (Adds clarification reference is to average market time in second quarter.)

According to the S&P/Case-Shiller Home Prices Index, national home prices fell 4 percent from April of 2010,  and it was the highest decline in more than a year.

The New York metropolitan area is faring better than the majority of the cities surveyed, and Westport has managed to buck the national trend again. Prices have remained steady and rising, and have even shown an increase of almost 11.8 percent from same four month period in 2010,

(The S&P/Case-Shiller Home Prices Index is released the last week of each month, and the results are published with a two month lag.) My advice is to remain optimistic, yet cautious. Here is a look at the weekly statistics:

Homes:  There are 370 single family homes on the market and their average list price is $2,102,877. The median list price is steady at $1,287,500. 

These homes have been listed for sale an average of 110 days. Almost one-third of all the available inventory is listed between $1 million and $2 million. The highest asking price for all homes currently on the market is $24,950,000, and the lowest available priced home is $239,900.

Eight new listings came on the market in the last seven days, and no homes came back on the market after being under deposit.

Thirteen properties had a price change, and nine properties have gone under the initial deposit stage, which we call CTS. Ten properties went into pending status, which means that the conditions have been satisfied, and the property is scheduled to close.

Closings: We had another strong week with 17 closed sales. The average list price was $1,277,129 and these homes were on the market an average just 62 days. There were 73 status changes in the last week.

Condos: The 30 condominiums that are available have been listed an average of 94 days, and have an average price of $614,975. The median price of a condo remains at $500,000.

The most active price pocket is between $700,000 and $800,000. The highest price condo in town is listed at $1,595,000 and the lowest offering price is $227,351.

One new listing came on the market this week. One property went into CTS status, and one property went into pending status.

Closings: No condominiums closed in the last week. There were four status changes in the last seven days.

Rentals: If you are looking to rent year round, either furnished or unfurnished, there are 70 homes or apartments available. The median price is $4,550 per month and the average price is $6,808 per month.

These year round rental opportunities have been on the market an average of 43 days.

As of this morning, there are 26 seasonal opportunities available and they have been on the market an average of 75 days, and at an average price of $10,184. The median price of both furnished and unfurnished seasonal rentals is $7,700.

Source: Market Data is compiled from the GFC-CMLS and represents activity through our local MLS system. Private sales are not included in these statistics.

Home of the Week: This seaside contemporary on Saugatuck Island is listed for $2,149,000.

This distinguished home at 42 Spriteview Ave. was built with every attention to maintaining privacy while enjoying its beautiful surroundings.

The field stone and stucco exterior incorporates a two and a half story semi-circular glass block wall which lends a contemporary style to the exterior while affording much natural light inside. The home’s interior remains consistent with outstanding architectural details and craftsmanship.

You may think a home in this location is all about the outside, but the inside abounds in elegance and grace. There really is nothing common about this 3,390 square foot, eight-room home.

Everywhere you look, you’ll see detail after detail. A massive living room has a field stone fireplace, architecturally designed, multi-tiered nine-foot tray ceilings, and two sets of over sized sliders with automated window treatments.

The kitchen was well designed for the aspiring chef, and the aesthete would be happy, too.

The marble floors here have the most impressive and tasteful inlays you have ever seen. The dining room has serene water views, inlaid walnut floors, and a back-lit tray ceiling. A first floor office has another fireplace, a number of built-ins and beautiful water views.

Reach the second floor by a most regal spiral staircase, which is masterfully accented by the glass block wall behind it. Upstairs, there are three bedrooms, and the home has three-and-one-half baths.

The master bedroom has a wraparound deck to take advantage of spectacular water views and also has its own kitchenette. The master bath is one that you might expect only to see at a four-star hotel and includes a whirlpool tub, sauna and four-head steam shower.

Built in 1975, this automated home has an outdoor camera and intercom system, an internally controlled audio system, with indoor and outdoor speakers, central vacuum, remote controlled drapes and awnings, an irrigation system, a computerized exterior lighting system, and a generator hook-up.

More than 1,200 square feet of private decks and patios take advantage of the scenery, and the rooftop deck offers a panorama of beauty everywhere you look.

This luxurious home on .26 acres in Saugatuck Shores combines traditional and contemporary styling with only the finest workmanship and details. Annual taxes are $29,216.

Listing/photo courtesy of William Pitt Sotheby’s International Realty
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(Editor’s Note: Judy Szablak of RE/MAX- Fairfield County CT Realtor since 1984 is author of “The Art of Buying or Selling a Home,” and is featured on HGTV’s real estate show, “Desperate to Buy.” Email .(JavaScript must be enabled to view this email address) or visit her blog at www.TheCTrealtyBlog.com.