Forget Nemo— It’s About Finding Value
Despite a year of head winds from new tax laws, higher mortgage rates, a volatile stock market and political scene, Greenwich’s residential market held its own in 2018.
Fourth-quarter transaction volume was a respectable 184 units, a 5% increase over a year ago, and indicating solid demand for housing in Greenwich. Pricing remained under pressure with the average price per transaction declining 18% to $1.97m from $2.4m the prior quarter. (4Q18 was skewed by 4 large closings totaling $79 million in 2Q17.)
Year-over-year the average sale price of $2.062m was down a modest 4% vs 2017. Although difficult to quantify, there has been a noticeable uptick in savvy New Yorkers crossing over the border to take advantage of the lower property taxes and the market reset. Buyers are searching for value…..and finding it.
$2-3M Segment Was Sweet Spot in 2018
- The bright spot for the year was the $2-3.0 million segment, posting a 13% increase in activity, a 16% rise in dollars traded and a 2% gain in price per transaction. Even these numbers indicate pricing was under pressure.
- The biggest segment, $2 million & Under (representing 34% of total dollars traded) remained stable in both activity and pricing.
- The $5-7.99M segment posted a 28% decline in transactions.
- There were 10 closings of $10 million-plus this year, up from 8 closings a year, but lower total dollars traded.
Sitting On The Sidelines
If you were a Seller in 2018, it required a lot of patience as many buyers sat on the sidelines digesting the impact of the new tax law and rising mortgage rates. The buyers that did step up tended to hold firm on pricing resulting in some tough negotiations… To read the full 4Q2018 Snapshot, please click here.