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Facts at a Glance
Current Number of Houses on Market as of July 25, 2013: 534
Average Days on Market YTD: 168
Average Sale Price YTD, 2013: $2,183,572
Number of Single Family Homes Sold First Half Year: 291
Happy to Say-- Greenwich Real Estate is Back on a Roll!
First Half, 2013
I am VERY happy to report that Greenwich real estate has found it's footing and is on quite solid ground. Sales were up on a volume basis by +16.4%. Just to underscore how significant that news is: we haven't had those sort of year over year gains since 2006. Sales were driven by the $1 to 3 million price range, which made up 57% of the market and showed a +44% gain over YAGO. The other price range that showed substantial gains was the under $1 million price point and together these two price segments made up 82% of all dollar sales in the First Half.
The story behind the fuel of this growth is what we have been talking about for awhile: Old Greenwich and Riverside are the sweethearts of Greenwich. These two communities constitute 48% of all single family sales in this time period. The average priced property sold for $1,953,975 in OG/RV.
While there are lower priced homes in these communities than some other areas of Greenwich, buyers are willing to pay more to live in these areas as evidenced by the fact that the OG/RV buyer paid an average price/sq ft of $570 in First Half 2013, which was +12.6% higher than the overall average price per sq. ft for all sales at $506. sq ft.
Importantly, the First Half, 2013 overall average price per sq.ft. in all of Greenwich was significantly higher than 2012's $405/sq ft average. This combination of facts--higher price per sq. ft. sold and increased sales volume are two indicators that Sellers are beginning to gain some traction in the market.
The First Half condominium and coop market also showed a notable performance, with a +59.3% gain vs. YAGO. 78% of the sales were under $1 million. The lowest price sale was a 625 sq ft condo in Lafayette Court for $150,000.
Second Quarter, 2013
The very positive 2013 First Half news is a direct reflection of the pick up in activity in the Second Quarter, which was responsible for 69% of all First Half volume sales. Old Greenwich and made up an impressive 93.5% of all single family home sales in this period, with 108 properties selling in Old Greenwich and 48 in Riverside.
The least expensive property to sell in Second Quarter was a 1,362 sq ft two family home in Byram for $360,000. The highest property sale was over $10 million with well over 16,378 sq. ft. and is an indication of the higher end of the market gaining momentum. This sale was followed by a number of negotiations that are now in the contract stage. The highest waterfront sale was in Old Greenwich at $8,100,000 for 1 acre of deep water with dock and private mooring and a 4,847 sq ft ho
Compare Prior Quarters
Where Do We Go From Here?
by Jeff Jensen (NMLS#109616), Certified Mortgage Planner, Connecticut Home Mortgage, Branch Manager, Westport, CT Contact: jeffjensen@cthm.com
After years of enjoying record low interest rates, borrowers saw a sudden, almost inexplicable rise in interest rates in mid June. The Fed Open Market Committee (FOMC) had met and issued its minutes. Contained therein was no language concerning the slowing of QE3 which is the nickname for the Fed's program of purchasing $85 billion in U.S Treasuries and Mortgage Backed Securities each month. During Mr. Bernanke's subsequent press conference, however, he said, "Assuming the economy and labor conditions evolve as the Committee expects, the Fed anticipated it would begin tapering later this year and to finish by mid-2014." Now speculation about when the program might end has been roiling markets for months, but the minutes and the subsequent interview created a classic mixed message. As we have seen in the past, uncertainty causes market to sell. And sell they did.
Among the most volatile was the mortgage backed security (MBS) market which sold off 134 and 186 basis points in consecutive days. MBS bonds are the investments which directly affect interest rates. When the dust settled, interest rates had shot up across the board with the 30 year fixed conforming rate jumping from 3.50% to 4.625%. Although many of us had a difficult time adjusting to the new "high" rates, a lesson was learned. If rates can shoot up so much in just a couple days once, it could happen again. Buyers quickly realized that now, more than ever, they should find the property of their desires and lock in a rate which is historically extremely low. Rates may reach 5.0% to 5.50% by the end of 2014 according to some recent forecasts.
Buyers who have all their documents ready to submit will find that the mortgage process can be accelerated and simplified by the quality and presentation of their file. To attain the best results they should react quickly to underwriter requests, suspend all credit inquiries and expect inquiries about large deposits. Prepared buyers will find the path to their new homes far less stressful than that of their procrastinating counterparts.
Robin's Note: According to chief economist of the National Association of Realtors, Lawrence Yun, latest economic indicators suggest that mortgage rates are likely to close in on 5% by 2014 and continue up in 2015. Blunting this negative impact is the return to more normal underwriting practices and the improving job rate. To read more on how the latest economic indicators may impact the real estate industry go to http://economistsoutlook.blogs.realtor.org.
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The Importance of Properly Pricing Your Property for the Market
While the market is no longer volatile, it isn't exactly a straight line of steady positive improvement and pricing remains a critical variable. Gone are the days (most of the time) of emotional buys. Buyers are, in fact, very vocal in stating value to be the highly critical in their purchase decision . This is why market analysis is, to me, always the backbone surrounding the pricing strategy and determining what factors are most critical to each property is where the great debate begins.
One of Greenwich's most prolific real estate bloggers recently noted a $3.3 million sale that I represented , commenting that the higher pricing strategy which another firm employed, before the property moved to Sothebys representation, may have gotten in the way of a sooner, and perhaps, higher price achievement.
(Image to right: Taking advantage of the landscape and environs are important but being too unique may actually hurt your appeal to the general buyer audience. Uniqueness in design can work for you-- or against you.)
Sothebys 2012 review of pricing performance share two key findings:
FACT 1: The first three weeks of a property's listing are the time of peak interest. It is this time period where a property will receive it's greatest number of showings.
FACT 2: The sales price of a property drops from it's initial listing price, the longer it sits on the market. While a property that is on the market less than 3 months will on average sell for 2% less than it's asking price, one that is on the market for more than 6 months can expect to sell on average 14% less than it's list price.
The goal of any marketing plan is always to attain the highest purchase price possible for a client. Listing a property above it's market value actually deters buyers and could decrease the possibility of a sale. If the market perceives a property's list price to be too aggressive, it can interfer with the early efforts to generate excitement and interest around a property in its important early days on market and actually hurt the price it eventually achieves in the market.
Being Voted Best Day Spa by Greenwich Magazine is Cause for Celebration
Christopher Noland Salon has been on the scene for a little and is on the second floor above CFCF Cafe at 124 Greenwich Ave. CN has won best salon for two years in both Greenwich Magazine and Serendipity Magazine's "Best of Greenwich" (Greenwich Magazine) and "Best of Fairfield and Westchester Counties" (Serendipity Magazine).
Not only do they have a staff of talented salonists for men, women and children's haircolor and cuts, they now offer a number of personal services.
As a welcome to new clients, the salon is offering a half price opportunity for new clients to try one of their many spa services, which include waxing, brow shaping, eyelash extensions, facial or massage.
Go to www.christophernoland.com or call 203-622-4247. Reference the offer in this newsletter when you call for an appointment.
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 College Planning
An Interview with Jim Brown, owner of Brown Educational Consulting, Greenwich CT
RK: When is the right time to start the college planning process?
JB: That depends upon where the student is in his/her interest and maturity levels. Ideally, a Freshman's spring semester in high school is a good time to have a general conversation around their aptitudes, performance-to-date and goals, if any have been articulated at this stage. For example, a goal may be knowing that there is a particular interest or talent that he/she will want to continue at the collegiate level.
Starting early allows for academic program planning, which includes taking a look at advanced course offerings and determining what college admissions tests may be a possibility at the end of the school year.
We like to work with a student to do a broad based, four-year course outline that sets up a calendar and includes key test options and timing. For example, a student who takes an AP class sophomore year would probably want to take the Subject Test as well as the AP exam upon finishing the class, while the material is still fresh in the student's mind.
RK: Won't the student's high school help him/her set this calendar up? Do students and their parents really need to worry about all of this before the guidance counselors let them know?
JB: We have found that the local schools and boarding schools vary widely in terms of their communication, planning, education and advocacy around the college preparation process. For parents and students to be proactive in educating themselves around the process in advance, the effort will not be wasted.
There are five elements considered in a college application. What each school requires varies, but broadly speaking they are:
- Student Academic Profile: What kind of student have they been? What levels (standard, honors, Advanced Placement) of classes has the student taken throughout their high school year?
- Standardized Testing: Most schools will require the SAT or ACT test to be taken by a student. The most competitive ones also require SAT subject tests. Where does the student stand verses the students that have been accepted in years past?
- Extracurricular Activities: What are the extracurriculars that help define what drives this student? Is it music, drama, athletics, art, writing, community service, math, science, business? Whatever it is, a good application shows that a student has some interests and has been actively involved.
- Who Am I?: What is the student like as a person? Through the college essay, a student's character should shine through. Colleges and universities do care about what drives a student and what their passion for life really is. Whether that is a past experience or about someone or something that has helped define them.
- Match: Is the student a match for the school? Doing a little research and understanding what the needs or desires of the college or university can help a student target how they can fit in or add to their environment. Admissions committees are looking to fill and strengthen programs and balance classes. Maybe your specialty, gender, ethnicity is what they need and are looking for.
Our goal as advisors is to make sure the student knows they will have options that they can feel good about. We want the student to know that the process is about them. We are there to help them learn more about themselves, determine how to best articulate those differentiating aspects, and help them craft how to present themselves.
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Old Greenwich and Tod's Point Old Greenwich is the oldest of the seven hamlets that make up Greenwich, Ct. It was founded in 1640 by Jeffrey Ferris, who purchased land from the Siwanoy Indians in exchange for 25 coats. One of the most distinctive features of Old Greenwich is Tod's Point, now a 170 acre park with beach fronts, a town sailing club, walking paths and natural preserve.
(Image to the right: One of the original cottages built by J. Kennedy Tod, built for his sister-in-law and her family at the turn of the century. This historical home was restored in 2006-11 by the Greenwich Point Conservancy . Photo: Greenwich Times)
Originally, Tod's Point was the 147 acre private estate of J. Kennedy Tod, a gentleman who made his fortune investing in railroads. Tod moved to what was then called Sound Beach in 1882 when he married, and for many years was the only daily commuter to New York City. When Tod bought this land in 1889, waterfront property was not something that anyone wanted. The perception was that water property was difficult to access and thus, had limited value. Tod built a glorious mansion along with outbuildings that housed staff who worked on the property. He named it Innis Arden. Though the published books on Greenwich claim the family was generous with their land, allowing local families to swim, fish, and dig for clams and oysters, one of the oral histories by a resident who grew up there at the turn of the century claims children would be regularly chased by the guards and Mr. Tod in the summer. In the winter however, the Tod's allowed the neighborhood children to skate, stopping up the dike to create rinks. Tod and his wife never had children and upon their deaths the estate was left to Columbia Presbyterian Hospital, a charity that was close to their hearts. Their thought was that the mansion could be used as a convalescent home. It was difficult for the hospital to maintain this ambition and in 1939, the Town of Greenwich purchased the estate for its residents. The mansion was converted to thirteen apartments and for many years housed war veterans. The mansion was demolished by the Town in 1961. BInney Park was always known for it's beauty, as it is today. Many folks rode the train in the early 20th century including professional ball teams, making the trek from Boston to New York and even Ed Sullivan, in the days when he was a news columnist. He would frequently write of the beauty of the park. But what seems to make Old Greenwich and Riverside the favored real estate sons these days, is something that the communities have had for a long time. Daniel Cantazaro shared in his oral history, "Village Life in Old Greenwich" that "Living in Old Greenwich was every kid's dream because there was always so much to be able to do at all times. And the people that lived in Old Greenwich were one big family. It didn't matter that I was a shoemaker's son or you were the millionaire's son. We all played together and we all were in and out of each other's houses." Sense of community remains strong, at a walk through last month for a lovely young family coming to Greenwich from New York City, the homeowners/sellers said they couldn't imagine ever leaving Old Greenwich--- a sentiment I hear often! More About Greenwich Area |
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 Installing, Refinishing and Caring for Wood Floors
Interviews with Stephen Gamble of Historic Floors, Greenwich and Tim Mantz, Mantz Construction, Bridgeport, CT
Refinishing wood floors may seem to be nothing more than selecting a stain color. This is just-pardon the pun-scratching the surface of wood floors. There are two critical parts to floors, quality and type of materials and craftsmanship.
(Image to the right: A wood floor hand scraped, chemically aged and custom stained with tung oil finish by Historic Flooring of Greenwich Ct.; Interiors: Ellsworth Ford Associates Photo: Michael Biondo)
The Material
The first material is the wood itself. There is a lot to think about here. Hardness and stability are factors to think about, particularly if you are installing the wood in what will be a high traffic area. Second, is grain. Do you want a tight grain such as an American Cherry or birch or a more open grain like oak or Brazilian Walnut.
How the wood is cut will affect how the grain looks, particularly with oak. Rift cut (flat gives more variation) than quarter sawn, which is the Cadillac in cut type. Clarity is another characteristic; in new wood clear is considered by many to be the best, followed by #1, then #2. Reclaimed wood, with it's knots, holes, gashes and such, is a whole different look and price point. Length of board makes a difference as does the hand that lays the wood and the pattern that is made. How well the wood is milled is important with width and thickness being critical. Unevenly milled wood can make installation and sanding a nightmare. Your contractor should guide and supply you with a good quality product.
Sanding and Scraping
If you have existing floors that need to be re-stained and scraped there are choices here as well. Most common and cost effective is to sand the floors with sanding machines. However, another approach is to hand scrape flooring. Hand scraping is the old fashioned method of refinishing floors and gives an uneven, textured effect. Stephen Gamble, owner of Historic Flooring, one of the finest master wood refinishers in the country (and located right here in Greenwich), can transform an ordinary wood floor to a breathing, living hardscape. Hand scraping is the beginning of Historic Floors process that is truly an art in the world of wood flooring. More on that as we go on to stains.
Staining
Stains are either ready made or custom mixed. Most familiar are names like Minwax (www.minwax.com) and Cabot Stains (www.cabotstain.com) which have a defined number of stains; these stains can be somewhat manipulated by mixing and matching colors. For years, I used a combination of Jacobean 15% to Dark Walnut 85% by Minwax and it stood me well from the first Bronxville townhome to the later Greenwich colonial and a few others in between. If applied properly, a very nice color and finish can be attained by these readily available brands and products. If you are considering a master refinisher such as Historic Floors, there will be yet another stop before staining and that is chemically aging and preparing the wood. "The recipes for aging wood and stains have been in existence for hundreds of years but the recipes and process has become a lost art", Stephen Gamble shared. "We are one of a handful of artisans reintroducing it". Aging the wood and hand mixing stains is a multi-day procedure; there is often considerable tweaking of aging and stain color as the take up and absorption by the wood is seen. Whether it is a commercial product or a custom approach, the role of weather should not be underestimated. Applying stain or a topcoat in weather that is too hot, humid or cold can affect how the wood takes the stain and can lead to blotchiness or uneven staining if conditions are not right.
Finishing
What you choose for a top coat depends upon the durability you are seeking, aesthetic look and care parameters. A Polyurethane finish will be very durable; because it is a plastic product, it influences the color of the wood and some clarity in the wood grain may be sacrificed. It offers great protection, is easy to care for (damp moping) and can last for a number of years before re-sanding and finishing is needed. Tung Oil or Wax are two finishes that firms like Historic Flooring commonly use. Tung oil is made from the oil pressed out of the nut of the Tung tree, and is considered by many to be the best penetrating oil for wood. "Tung oil allows the character of the wood to come through, creating a movable, breathing finish", Stephen Gamble contends. The wood drinks up the oil without darkening the color of the wood; it can be thought of as a moisturizer for wood to some extent. A wax finish is another approach that Stephen often recommends. Depending upon the amount of traffic, wax floors may need to be top-coated on an annual basis but they give a warm, natural look. They are not as durable as a polyurethane finish but offer a bit more protection than an oil finish.
Cost
The installation and finishing cost for a wood floor that will have all the character and look of a pristine old floor can be 4-5 times as costly as a standard wood floor finish. Whichever approach and products you select, most important is having a skilled and knowledgeable installer at the helm. There is simply no substitute for this.
Care
The worst thing you can do to any wood floor is to leave water or spills sit. On a daily basis, vacuuming is the best care method. If mopping is needed, dilute a gentle detergent that won't leave an oily residue in warm water. Wrap cheesecloth around the swifter and quickly damp mop the floor, being sure it is well dried.
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Greenwich Real Estate News is a quarterly newsletter giving a brief snapshot of Greenwich Real Estate and share important news in the community and insights into matters related to the home. It is not intended to be a comprehensive review of the real estate market in Greenwich. © Robin Kencel Properties of Distinction 2013
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