CLARK: Condominium statistics

The inventory of condominiums, co-op’s and town homes decreased 8% in the first half of this year as compared to the first-half of 2014. With the exception of the units priced between $500,000 and $600,000 for which inventory increased 80%, the other price points saw a decrease in inventory by as much as 50% (condominiums listed between $1m and $1.4m).

Sales of these units, however, increased 9% and sales volume increased 51% when comparing the first half of this year to last year. Also, the days on market for these homes decreased

When comparing the number of units under contract in the first half of this year as compared to the first six months of 2014, there was an increase of 7%. Price points having the most increase in contracts were: $800,000-$999,999 (30%), $1m-$1.399m (42%), $1.4m-$1.999m (200%) and $2-$2.999m (300%).

While the sales of condominiums (all types) increased 9% when comparing the first six months of this year to the first half of last year, the price points having the most increase in sales were: $800,000-$999,999 (86%), the $1.4m – $1.999m (175%) and the $3m and over (33%).

Of note is that the month of June had the most increase in condominium sales (all types) this year so far. There were 27 units sold in June of this year as compared to 19 in 2014. (Source: Greenwich MLS)

Home prices hit new levels this past May in 10 states (Alaska, Colorado, Iowa, Nebraska, New York, North Carolina, Oklahoma, Tennessee, Texas and Vermont) and the District of Columbia. Homes nationally increased slightly over 6% from last year. This is including the sales of distressed properties (foreclosures and short sales).

Home price increases are attributed to the limited supply of inventory and low mortgage interest rates are attributed to this development. Some sought-after areas of the country are experiencing double-digit price gains (i.e. San Francisco).

Over 50% of homeowners surveyed by Fannie Mae last month thought it was a good time to sell. Based on the results of this survey, an increasing amount of respondents anticipate rents to increase as more people become employed and are able to get a place of their own. As more renters find it financially advantageous to purchase a home, there will be more upward pressure on home prices. This in turn will motivate homeowners to list thereby improving the health of the real estate market.

Millennials are increasingly becoming renters which explains why multifamily rental construction is surging. Baby boomers and their high-rates of home ownership continue to significantly contribute to the housing market. The number of new rental households has increased by 770,000 annually since 2004. Multi-family housing starts reached nearly 360,000 units in 2014, more than in any year in the 1990’s or 2000’s. (Source: Harvard’s Joint Center for Housing Studies).

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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