CLARK: Demand is exceeding home supply

National: According to Chief Economist of Realtor.com, Jonathan Smoke, the real estate market is having its best year since the peak of the housing market in 2006. Evidently, job growth has been a significant reason. In the past 12 months more than three million jobs have been added nationwide. As employment improves, housing demand as increased. The median age of available homes on the market across the country last month was 66 days – eight days faster than the prior year. Inventory is moving just 18 to 45 days in some markets. Demand is exceeding supply.

Inventory has been less than a six-month supply in the last consecutive 32 months. This is why prices are increasing in some markets. Median home prices increased nine% in April year-over-year. This development has also meant that home owners are seeing gains in their home equity.

Local: Single-Family Homes

In Greenwich (all towns), single-family home inventory is slightly down (-2%) from January through May this year as compared to last year at this time. The median sales price for single-family homes is down (-7%) this year (January through May) as compared to this time period last year. The current median sales price is $1,860,000.

The inventory of homes under one million fell (-27%) while homes priced between $ 3 million and $ 3,999,999 inventory increased (36%) in May as compared to May of last year. These available inventory statistics explain why there was a 28% decrease of homes priced under 1 million under contract in January through May.

Local: Condominiums (Includes Co-op’s and Town Homes)

In Greenwich (all towns), condominium inventory ticked up (5%) between January through May this year as compared to last year at this time. The median sales price for condominiums increased 41% this year (January through May) as compared to this time period last year. The current median sales price is $ 823,250. The largest price segment increase in available inventory reported is for units priced between $600,000 and $700,000 in May as compared to last year.

When comparing January through May of 2014 versus January through May of last year, the price segments with the most units under contract are: $1.4 million to $1.999 million (+ 300%) and $2 million to $2.999 million (+500%). Understandably, the units priced between $800,000 and under a million dollars also had the third largest increase of 25%. Units in these price points reported the largest increase in sales between January through May of this year when compared to this time period last year.

There remain certain markets in Greenwich where there is a significant shortage of inventory (i.e. Riverside and down town Greenwich). Should a home owner wish to sell a property in a sought-after neighborhood, it is advised they use a Realtor. The more marketing exposure such a property has, it has been proven over and over, the higher the price the seller will receive.

Mary Ann Clark is a Realtor with Coldwell Banker at 177 West Putnam Avenue in Greenwich. Questions or comments may be emailed to [email protected]

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