Karen Brewer

Market Trends Category

Darien,Ct Real Estate,Good News and Bad News…

This is a good news/ bad news kind of post. The attached report showing the state of the Darien real estate market is completely depressing. It indicates across the board loses in listings, sales and average price. Only “days on market” numbers are moving in the right direction.

The numbers can be explained by an extremely late spring (I’m not even sure it’s here now) that kept buyers hunkered down.

Now the good news.Since April 1, the entire market has turned around. Homes, if priced well, are selling within two weeks, the inventory has been replenished with lovely new listings and indicators point to a really great second quarter 2011.

Since April1 there have been 18 new listings and 16 homes gone to contract.Homes predominantly in the $700,000-$1.700,000 are selling almost as quickly as they come to market. In fact, there have been” multiple offer” situations as the competition for well priced homes heats up.The perfect storm of low interest rates and a perceived market bottom has finally created real momentum. There are a few notable sales in the upper reaches of the real estate stratosphere among them a $5.5 million dollar home in Noroton Bay $7 million listing on Long Neck Point.

State of the Market, Darien Homes for Sale

I usually post the new listings and closed prices each week for Darien real estate but lists and charts can only go so far.What those weekly reports lack (and I’m just as guilty of putting them out there as anyone) is context.

The spring Darien real estate market has gotten off to a belated start but has finally begun. In my mind, there is good news and bad news. The good news is that there 22 accepted offers in the past month, with some homes selling in under a week and some in multiple bid situations.

I’ve opined ad nauseum about how pricing is KEY and those who do it correctly will be rewarded-quickly. Those who don’t are doomed to chip away at their asking prices and drag out the situation. To prove the point there were no less than 43 price reductions last month across ALL price ranges. That’s the bad news. It looks as though in spite of brisk sales activity,the market is continuing to decline. Many of the reductions are coming from older listings where homeowners are coming to grips with the market realities.The trend is disturbing and I’ll keep updating as the spring continues.

For those in the market to buy, it is still a great time with new listings coming on the market daily, interest rates at a low point and prices moderateing . I was hoping we were “at the bottom” but it looks like we have to go just a bit more. You can never time a market bottom perfectly but “really close” is just fine too.

Contact me at kmbrewer2@aol.com directly for more information or return to the home page and sign up for a Listingbook account and track the market just as I do.It’s free.Really.

Darien,CT Real Estate, Year to Date report

Two months does not a trend make but for those of you who are following the numbers closely, these are all going in the right direction for what is affectionately termed a “recovery”. I think of it more as physical therapy….one foot in front of the other….until we’re on our feet again.Real estate markets are like people…they heal at their own rates and this one is no exception. The patient is doing well.

Mortgage Fees Set to Rise this Spring

A recent article in the Wall Street Journal reports that the cost of getting a mortgage is about to get a lot more expensive. If you’re thinking about buying a home here in Darien or just about anywhere ,consider the following:

• Fannie Mae and Freddie Mac are adding new fees to borrowers with even the best credit ratings.Previously,there had been no fees assessed on those  with credit ratings of 720 or higher who put down less than a 25% deposit.Now there will be a fee of 0.25% to 0.5% of the loan value for those  borrowers. Those with credit scores of 700-719 and a 20%or less deposit will be assesses a full percentage point on the loan.
• The Consumer Financial Protection Bureau a new agency will be analyzing how  interest rates and closing costs are disclosed to consumers.Undoubtedly, this will result in consumer education programs and more paperwork the cost of which almost always gets passed down to the consumer himself.
• The Obama Administration is proposing a reversal in loan limits for high cost areas back to $625,000.Loans up to that amount will be considered “conventional.” Anything above that will require a “jumbo” mortgage and those rates are traditionally a half a percentage point higher. In a town like Darien, changing that limit may make the cost of the loan too expensive effectively excluding some first time buyers from the market.

There are a number of other changes coming up that will affect not just the Darien real estate market but all markets. FHA loans,primarily aimed at moderate income families will carry greater fees and the mortgage insurance associated with those loans will be harder to get.

Just when the market seems to be rallying,there are new hurdles to overcome.If you’re thinking of buying real estate, this could be the best, or at the lease the cheapest time to “pull the trigger”.

14 Broker Open Houses Tomorrow

Here we go….as promised… the Darien real estate market will begin to heat up as the weather warms.Tuesdays and Thursdays are”Broker Open House” days and tomorrow will be busy one.There are 14 homes on the tour in Darien and Rowayton alone.Some  of the homes for sale are inventory leftovers from the winter but many are new and range in price from $700K to $6million.Ladies and gentlemen…..start your engines.

Property Transfers, Darien Ct, February 1-10.

Only five property transfers were recorded so far this month.Most notable is 58 Mansfield Ave, which when originally listed  three years ago was listed for over $3.5 million. You can see where it has ended. RIP.

Midbrook Lane was a wonderful colonial with great bones and great potential.Morehouse Lane was one of the last great building lots in town. Congratulations to the lucky buyer.

Why is The Darien Real Estate Market Like The Weather?

Why is the Darien real estate market like the weather? Well think about it. This has been one of the worst winters in recent history for most of the country and particularly in the Northeast. The snow has piled up, literally holding us hostage in our homes as we wait for the next storm.

The real estate maket has behaved similarly. We’ve been hit by one punch after another for the past couple of years. While some volume has returned to the market, in 2010,the first two months of 2011 have been off to an anemic start.Houses have come onto the market one and two at a time. There have been sales but buyers and sellers are,for the most part  waiting for spring.In my conversations with other agents and homeowners, there is a backlog of buyers and sellers  who will ignite a  buying spurt at the first sign of crocus.

As a result, I’m going to go out on a limb and make a prediction. As the ice melts and snow recedes, the Darien market will take off like a Ferrari.The most popular price point,as always, will be the $1-$2million price point. If you’re a buyer or seller, keep your eyes open and ear to the ground.This year is being recognized as one that is very near the bottom of the Darien market and I think we will come out of the bad economy and bad weather stronger and more resilient than ever.

Darien Downsizers, Where to Go?

If you’re a downsizer in Darien,don’t get all excited.I don’t have a reasonable answer to the question.Lots of my contemporaries, with kids out of the nest,wish to  move to smaller digs yet,stay in the town of Darien. However,Darien has a  real lack of  alternatives for those wishing to rid themselves of  lawn maintenance and snow plowing.

There are of course condominiums in Darien such as Middlsex Common,Villager Pond,Sedgewick Village and Darien Close.Few if any of these offer one floor living or privacy though.

Darien Real estate inventory is at an all time low,owing I hope, to recent meteorological events.If you happen to be a seller with a home on the smaller side,say 2500 sq ft or less, this spring real estate season in Darien may be a great market for you. I guarantee there are “in town” buyers ready to jump.Beware however, these buyers are demanding homes in ship shape. No kitchen remodels, knocking out walls and the like.They have done their share of that and are looking for a breather.Contact me for a price opinion of your home, big or small. 203-554-0951 or kmbrewer2@aol.com.

Year End 2010 Real Estate Market Report, Darien and Fairfield County.

Every quarter and and year end,William Pitt Sotheby’s International Realty publishes a recap of the real estate markets in Fairfield and Litchfield,Ct counties.Unlike other reports that just provide statistics, this report is well worth reading.It provides context for the various marketplaces in Connecticut and offers excellent insights into,what’s selling,why and who is, in fact buying.Its a must read primer for anyone entering the Darien real estate market in 2011.

http://viewer.zmags.com/publication/ddb5fafd#/ddb5fafd/1

Darien Real Estate,Short Sale in Town…

Blessedly, the town of Darien,Ct has been largely spared from the real estate meltdown of the past few years. It is true that real estate values in Darien have declined nearly 30% but compared to other parts of the country, that’s actually not so bad.

The number of foreclosures and short sales have also been on the low side. Many have come on the market and quietly been turned over to the banks.One such property is  12 Five Mile River Road.

If any of you know Darien,Ct homes,you know that this is a pretty, prestigious address. I had occasion to reacquaint myself with this home this past weekend and I’m amazed that it remains available.

This Darien house is in a great location, although on a back lot,it is walkable to Five Mile River,one of the prettiest waterfront streets in town.The house was purchased in 2006 for $2.1million and is being offered now for $1.495.The home itself is in fine shape.New kitchen,updated baths and a lovely pool.For you investors out there take a look. TO VIEW THIS HOME CONTACT ME AT :kbrewer@wpsir.com or 203-554-0951.