new yorkers are fleeing to the Suburbs

via The New York Times

By Matthew Haag | Published August 30, 2020

Over three days in late July, a three-bedroom house in East Orange, N.J., was listed for sale for $285,000, had 97 showings, received 24 offers, and went under contract for 21 percent over that price.

On Long Island, six people made offers on a $499,000 house in Valley Stream without seeing it in person after it was shown on a Facebook Live video. In the Hudson Valley, a nearly three-acre property with a pool listed for $985,000 received four all-cash bids within a day of having 14 showings.

Since the pandemic began, the suburbs around New York City, from New Jersey to Westchester County to Connecticut to Long Island, have been experiencing enormous demand for homes of all prices, a surge that is unlike any in recent memory, according to officials, real estate agents and residents.

In July, there was a 44 percent increase in home sales for the suburban counties surrounding the city when compared with the previous year, according to Miller Samuel Real Estate Appraisers & Consultants. The increase was 112 percent in Westchester, just north of New York City, and 73 percent in Fairfield County, Conn., just over the state border.

At the same time, the number of properties sold in Manhattan plummeted 56 percent, according to Miller Samuel.

The suburban demand, driven in part by New York City residents who are able to work remotely while offices are closed, raises unsettling questions about how fast the city will be able to recover from the pandemic. It is an exodus that analysts say is reminiscent of the one that fueled the suburbanization of America in the second half of the 20th century.

It is not just crowded open houses, multiple offers, and bids above asking prices. People in New Jersey suburbs who have no interest in putting their homes on the market are receiving unsolicited calls and knocks on the door from brokers asking if they want to sell.

Of course, residents have left New York City for the suburbs for decades, especially to bring up children in towns with strong public schools. And it is very difficult to predict whether the new migration will continue at this pace once a vaccine for the coronavirus is available and office towers in the city fully reopen. What’s more, most New York City residents do not have the means to spend hundreds of thousands of dollars on a home in the suburbs.

Experts have predicted New York City’s demise during past crises, including the Sept. 11 terror attacks, only to be proven wrong. In fact, even as office towers in Manhattan remain largely empty because of the outbreak, some businesses, including Amazon and Facebook, are expanding their footprints, betting that workers will eventually return to their desks.

Still, many companies and workers have become much more comfortable with remote work during the outbreak, suggesting that the suburbs will remain very attractive for the foreseeable future.

For now, many buyers in the suburbs are expressing concern about the health risks of living in densely packed urban neighborhoods. Facing pandemic restrictions, they want room that New York City often cannot provide: a yard for their children to play and an office to work remotely. Many want land, even if it means being farther away from Manhattan.

Some buyers have told brokers they are concerned about reports of rising crime in New York City, real estate agents said. (Overall crime has not spiked in the city, but shootings have, Police Department data shows.)

“The people from New York are coming with a sense of urgency, and the thing they want is space,” said James Hughes, a real estate agent in New Jersey, who added that roughly 60 percent of potential buyers for his properties live in the city. “The demand is insane.”

Zack Stertz and Zoe Salzman joined the buying frenzy in June. After 15 years in Brooklyn, they said they realized soon after the pandemic struck that their two-bedroom apartment with a backyard, generous by New York standards, was too small for working from home with two young sons.

They could not afford a renovated brownstone in Brooklyn and were worried that New York City schools would not open for in-person classes in the fall, so they looked at New Jersey. They weren’t the only ones, their broker at the Allison Ziefert Real Estate Group warned them, suggesting they act fast.

When a four-bedroom house in Maplewood, N.J., appeared on the market on June 12, they toured it on June 14 and two days later submitted an offer over the $799,000 listing price — the highest bid among many offers. The sellers accepted it.

“To give up living in Brooklyn and move to suburbs, we just couldn’t see ourselves there,” said Ms. Salzman, 39, a lawyer whose office is in Manhattan. “But the pandemic helped make this choice for us.”

The flight out of New York City could inhibit the city’s economic recovery and its ability to maintain quality-of-life services like the police and sanitation, said Maria Doulis, vice president of strategy and operations at the Citizens Budget Commission, a nonpartisan fiscal watchdog.

“What is worrisome is that the high-income earners, particularly those with more than $1 million, provide a substantial amount of resources to the New York City budget,” Ms. Doulis said. “To lose them would really represent a blow to the budget.”

Mayor Bill de Blasio said this week that he had no doubt that New Yorkers who left during the pandemic would eventually return, though he appeared to be referring more to people who had temporarily moved elsewhere, including to second homes.

“If you don’t think New York City is coming back,” Mr. de Blasio said, “then you don’t know New York City.”

Still, real estate agents across the region say they have been swamped with calls from New Yorkers who are rethinking their desire to stay.

Moving companies have said they cannot keep up with the demand. Metropolis Moving in Brooklyn said the number of quotes for out-of-state moves jumped by more than 200 percent in May and in June compared with those months last year, and by more than 165 percent in July versus a year ago. Most people seeking quotes were moving to the city’s suburbs, he said, though others were moving to areas stretching from Washington, D.C., to Boston.

Across New Jersey, more than 29,700 homes were sold in June and July, an increase of 33 percent over the same period in 2019, according to the Otteau Group, a real estate data, and appraisal firm.

Jeffrey G. Otteau, who is the president of the company, said the buying spree was particularly notable because it was happening when fewer homes were on the market.

From the start of the year through July, the inventory in New Jersey dropped 40 percent compared with the same period last year — a sign that many homeowners in the state were staying put during an uncertain economy.

“The demand has to come from somewhere, and we think most of that is coming from New York City,” Mr. Otteau said. “In some ways, this looks to me like the 1960s and 1970s, when there was a large outflow of the population pushing into the suburbs.”

Mr. Hughes, the New Jersey real estate agent, said he had multiple clients who each lost bids on about half-dozen homes, including a two-bedroom house in East Orange that received 25 offers. It sold for $345,000 — 21 percent over the asking price.

“It’s crazy for any period,” he said.

For more than two months, Rennes Toussaint and her fiancé, Olajide Keshinro, have been looking at houses in New Jersey. The couple, who live in a 500-square-foot apartment in Queens, have submitted offers for four homes but lost out on all of them.

Before the outbreak, the couple discussed leaving the city for the suburbs, but never this soon. It became urgent when Mr. Keshinro, who plays professional basketball overseas, suddenly returned home early, Ms. Toussaint said, and the apartment felt even smaller.

“We thought it would be easy, but it’s very, very, very competitive,” Ms. Toussaint, 33, said about the housing search.

In New York’s Hudson Valley, the number of homes sold in July in Putnam County jumped 35 percent from the year before; they climbed 19 percent in Dutchess County.

Melissa Carlton, a broker at Houlihan Lawrence, said the area’s picturesque towns and scenic views had long attracted second-home buyers and people who want weekend getaways. But New York City residents have recently explored the area for permanent residences.

“Last year, people would say that a property may be too far away from the train station,” Ms. Carlton said. “That is not the case this year.”

That is how Rehana Alam and Sadi Alam feel. They live with their three children — ages 9, 7, and 4 — in a home they own in Jamaica, Queens. It is a 15-minute commute for Sadi Alam, a podiatrist, to get to work.

But the Alams have been concerned that their children have been largely confined to their home during the pandemic. Over the summer, the couple decided to get more indoor and outdoor space for their children.

On Wednesday, they closed on a five-bedroom house with a pool on two acres in Dix Hills, Long Island, about 30 miles east of Queens.

“The best thing I could have done was provided them more space,” Ms. Alam, 35, said. “Looking at their sad faces, it just wasn’t worth staying in Queens.”

real estate market sees boom in young home buyers amid covid19 pandemic

via WREX.com

By CNN | Published on August 6, 2020

(CNN) — While many businesses have taken a hit during this pandemic, others have been booming. Some in real estate say the coronavirus is pushing younger home buyers out of the city and into their first homes.

For many young homebuyers, Covid-19 is making the green space of the suburbs more attractive.

"The value of the city to us was being around all the people being able to go to all the restaurants like the culture and the museums and the plays and everything so you remove all that it's difficult to justify paying the rent, being in a small confined space and having no access to being outdoors by yourself," says prospective home buyer Eileen Norton.

First-time homebuyer applications jumped 20% in June compared to that same month the year before, according to CoreLogic, a company that analyzes business statistics.

One real estate broker says shes seen sales skyrocket.

"We're based in Darien, Connecticut, so in the first six months, which is really incredible when you think about how much business was not being able to be done during the pandemic," says Connecticut based real estate broker Jessica Bauers, "Fairfield county as a whole did about $2.36 billion in sales and that's 12% over this same period last year and even better than that if we're just looking at the end of June to the end of June pending sales are up 49% it's really skyrocketed."

denver metro home prices hit record

via 9News

By Ryan Haarer | Published September 3, 2020

DENVER, Colorado — The latest report from the Denver Metro Association of Realtors (DMAR) shows the average price of a detached home in the 11-county metro area hit a record of $606,330 in August. 

Demand is extremely high as potential buyers look to take advantage of low-interest rates.

The report shows that 5,959 homes were sold in August 2020, more than any other August on record. But the inventory was also lower than any previous August, dropping 41.22% year-over-year.

“I call it the Vicious Circle," said Jill Schafer, trends committee chair for DMAR. "I think that people would like to move and perhaps change school areas or get to a bigger home or downsize. But when they look at what's out there, they can't find anything they can get excited about or find anything at all. 

"So they opted not to go anywhere and then they put their houses on the market." 

The bottom line, there are not many deals out there. Buyers should expect to pay full price -- if not more ... and that’s if they don’t get outbid.

“Buyers need to be patient," Schafer said. "They need to have someone who's experienced writing offers in this kind of market and they need to know that they're going to be putting all their cards out on the table that they are not going to really be able to negotiate. 

"In fact, they may have to make compromises. They may have to choose a different neighborhood than what they wanted or a smaller home than they wanted.”

why colorado's housing market is booming despite covid19

via Colorado Sun

By Tamara Chuang | Published August 27, 2020

From the start, 2020 was going to be big for American Financing. The Aurora mortgage lender had a major marketing coup: a celebrity endorsement from Peyton Manning, who led the Denver Broncos to a Super Bowl win in 2016. 

Then the coronavirus hit. 

The 400-plus employee firm was no longer sure TV commercials starring Manning would attract enough business to hire 200 more people this year. To keep existing staff, it applied for a federal relief loan and received one for more than $5 million. But then interest rates plummeted, and demand to refinance exploded. The company began hiring like crazy, and is now at 600 employees (and still hiring). It paid back its federal Paycheck Protection loan.

“I think there is a silver lining (in the pandemic). People can look to refinance to save themselves some money each month and then take that money and put it back in the economy if they want to,” said Jonathan Payne, American Financing’s vice president of sales. “Good employment with us as well as low interest rates are driving people to refinance, save money (and that’s) a good thing for the mortgage industry.”

But just as American Financing and the homeowners it helped found a way to better themselves amid a harrowing pandemic economy, another part of the mortgage industry fared much worse. The number of Coloradans who didn’t pay their mortgages in July spiked to near record levels, according to new data from the Mortgage Bankers Association. Hardest hit were Federal Housing Administration loans, which are designed for low- to moderate-income households.

“The delinquency rate has risen, and the major reason for it is unemployment,” said Marina Walsh, the association’s vice president of industry research. “If people don’t have jobs, they can’t make their mortgage payment.” 

The loss of hundreds of thousands of jobs in the past five months has widened a housing divide that existed in Colorado before the pandemic. In January, the number of people homeless in the five-county metro Denver region had increased from the year before. By July, the demand for housing pushed prices to record levels. 

Growth was expected to slow in 2020, according to the University of Colorado economists’ forecasts at the end of last year. And the U.S. officially entered a recession in February, a month before Gov. Jared Polis began issuing a slew of executive orders to stem the spread of the strange new virus in March. 

As some spots of the state’s economy continue to enjoy growth, life is worsening for the ones that were faltering before COVID-19 struck. And there are signs that a more difficult period is around the corner. 

Last month, Denver Homeless Out Loud volunteers counted 664 tents — estimated to be sheltering 1,328 people — on a single night in one part of downtown Denver. That’s about 30% more people than the annual census counted in the city in January (which was at nearly twice the number from a year earlier).

Meanwhile, the National Western Complex was turned into a temporary shelter that was used by roughly 3,000 unique individuals between April and July, said Cathy Alderman, public policy officer for Colorado Coalition for the Homeless. 

“The fact that we’re seeing a boom in home purchases and refi’s, it all goes to kind of this widening economic disparity that we have, especially in the Denver area but all across the state, frankly,” Alderman said. 

For many people, she added, homes are not affordable. Rents for low-income families were out of reach before the pandemic. 

“We’ve had an eviction moratorium in place at both the state and federal level (and) requirements that landlords provide more time for renters to pay back due rent. And those things are expiring or in many cases, have expired,” Alderman said. “I feel like September is really going to be more of our bellwether month for what we consider to be an eviction crisis.”

Behind the low eviction rates of renters

Colorado’s high rate of pandemic unemployment — in the past five months, some 713,241 Coloradans filed for the first time — hit the lowest-wage industries the hardest: retail, accommodations, and foodservice. Many of those workers rent. 

States and the federal government stepped in to protect renters who had lost jobs, by delaying evictions. But Colorado’s eviction moratorium and an order prohibiting late-rent fees ended June 13, allowing the eviction process to begin. An exception is rentals covered by federal housing assistance, which delayed a landlord’s right to evict to Aug. 11 before giving a 10-day notice, according to the state Division of Housing FAQ page on rents and evictions.

Even so, as of July 20, 93.9% of renters had paid their July rent. The month ended with about 1,139 evictions, or about one-third the normal monthly number, according to the Colorado Apartment Association, which represents 60% of the state’s multi-family units and landlords.

There are several reasons why the eviction rate was so low in July, said Drew Hamrick, general counsel and senior vice president of government affairs for the Apartment Association of Metro Denver. Just because somebody can’t pay rent doesn’t mean they will be evicted.

“When times are good, people expand their demand. They decide they don’t need a roommate, they decide they don’t want to live with their parents anymore, they decide that their spouse is unbearable. All those kinds of things expand the demand,” Hamrick said. “And when times are bad, people start roommating up, they start moving in with parents, they start saying, ‘I don’t need a Class A apartment, I can settle for less square footage and fewer amenities.’”

It’s too early to tell where the rental market will end up this year, Hamrick said, but it’s nonsense to think there could be more than 450,000 evictions in Colorado, as some housing advocates have warned. That would be more than two-thirds of the apartment units in the state, he said. 

“There’s never going to be a time when there are 627,000 rental units and somebody is going to evict 400,000 of them and 400,000 Coloradans are going to be living in parks while there are 400,000 empty apartments,” Hamrick said. “That’s just not the way the market works. What you’ll see is pressure to start decreasing rents and higher vacancy rates.” 

Some of that is starting to happen. Average monthly rent in metro Denver decreased about $30 in the second quarter, a period when rents typically increase, researchers at the University of Denver’s Daniels College of Business found. 

There’s also evidence that people are still moving to Colorado. Just last week, Amazon announced that it’s added 100 tech and corporate jobs in Denver, where it already has 130 openings for tech workers. Palantir Technologies, whose data analysis technology is sold to governments and private companies, is moving its headquarters to Denver from California, the Denver Business Journal reported.

“With all this work at home, people are saying, ‘I don’t have to live in New York anymore. I can do my job remotely and therefore Colorado is on the table,” Hamrick said. “We’ve got a couple of markets, like Colorado Springs in particular, that have been hot.”

The more immediate issue for renters is the fate of federal relief, said Brian Lewandowski, executive director of the Business Research Division at the Leeds School of Business, University of Colorado. 

Workers laid off because of coronavirus closures earned an extra $600 a week, which propped up the slashed incomes in the short run. Some of the financial aid, however, has now ended, though new programs have kicked in.

“I’m more concerned about the rental side because I think the federal payments did make a difference for renters,” Lewandowski said. “And if that goes away, I do worry about the strain.”

Lewandowski expects the economy to fully recover, just as it did after the Great Recession. But it could take years. And that could widen the gap between those who can afford to refinance and those who can’t make rent. It’s called a K-shaped recovery, where inequality widens. 

“If you picture the K, there’s divergent ends,” he said. “You’ve got the people who have the jobs and maybe have more wealth, and then the people who don’t and are sort of left behind in the recession. And they’re left behind in the recovery.” 

The hot-ish housing market

Even as open houses were banned in the spring, prospective homebuyers found their way to signing contracts. They wanted single-family houses.

Statewide, the number of single-family homes for sale dropped in April but picked back up in May, June, and July. Last month, 21.3% more houses sold than in July 2019, and the median sales price went up 8.6%. For the year, sales are down 2.8% though prices are up 6%.

Matthew Leprino, a Realtor in Denver, said he thinks people want a larger space. They don’t want to be stuck in a small condo downtown with nowhere to go.  

“A buyer who was looking for a property last August may have said, ‘I’m only in my property so often. I don’t care if I buy a one- or two-bedroom condo. I’m only there to sleep and watch some Netflix and then I leave and go to work the next morning or I’m out with friends all weekend,’” Leprino said. “In August 2020, that property needs to be so much more: the gym, the office, the studio. And I think people are willing to pay a little bit more, so that could have something to do with how on fire our market is.”

For single-family homes, that seems to be true. Condos? Not so much.

Sales of townhouses and condos have declined every month since March, compared to the same time last year. Median sale prices have increased by 4.9% for the year, but sales are down 6% compared to the same time last year. And the supply has been growing, with enough condos for sale to last 2.4 months in July, compared to 1.9 months in January. 

Leprino said that two weeks ago, he put a client’s downtown loft on the market that a few months ago “would have sold in a heartbeat because of the demand.”  After a week, only one prospective buyer had looked at it. 

“I just had a conversation with my clients and said, ‘Hey guys, the demand isn’t there right now. I don’t want you guys to waste days on market. Let’s revisit this in the fall. Let’s see if people are coming back to the city,’” he said. “That would not be the case with a single-family home anywhere in the metro area.”

But this could be a way in for first-time homebuyers who didn’t feel they could buy a home before the pandemic. The slowing price growth for condos combined with very low-interest rates means house hunters can afford more house than before, said Payne, with American Financing. 

“It’s really good for borrowers,” Payne said. “It’s making a difference for the customers who are saving hundreds of dollars a month or tens of thousands over the life of the loan just by getting that lower interest rate.”

American Financing in Aurora borrowed a federal Paycheck Protection loan between $5 to $10 million. But during the first months of the pandemic, business thrived so owners Damian and Gabie Maldonado returned the money and paid back what they had used. (Handout)

People who can sell their homes and move up during the pandemic appear to be doing so. It’s just those people living off savings and credit cards who will have a rough time in the coming months.

“People that are paying their mortgages, own a home and might even be getting mortgage forbearance or mortgage assistance during COVID are probably gonna be OK,” said Alderman, with the Coalition for the Homeless.  “We need to support and keep that the way it is because we don’t need any of those people to be falling into housing instability or homelessness.”

But for those who don’t have the means, something’s got to give if coronavirus safety measures continue to limit business operations and a return to full employment.

“Most people over the last few months have been using their savings and credit to pay for things that they normally would have paid for (from an income),” Alderman said. “And those are not sustainable funding sources for people.” 

Even low-interest mortgages must be paid

In Colorado, the second quarter saw a near-record rate of folks who didn’t pay their mortgage on time, according to the Mortgage Bankers Association.

At a 6.22% delinquency rate, Colorado is doing better than the nation’s 8.22%. But the numbers get worse if you look at the type of loans borrowers are delinquent on. For FHA loans, delinquency rates jumped to 14.65% in Colorado last quarter, topping the previous high of 11.89% in 2009.

“It’s not great. It certainly is a big uptick in a short amount of time. It’s definitely worrisome to see delinquencies at this level, especially FHA. FHA was at a survey high for delinquency rates, and our survey goes back to 1979,” said Marina Walsh, the organization’s vice president of industry research. 

“Usually delinquency follows pretty closely with the unemployment rate and the unemployment rate spiked up more than our delinquency,” she added. “I do believe the stimulus that’s being offered is helping to some extent. But these are not pretty numbers at all. To see a four percentage point jump in the delinquency rate in three months is rather startling, and we’re at the highest delinquency rate overall that we’ve been in nine years.”

Colorado may be doing better than other states because it’s more diverse, with strong aerospace and technology companies that coexist with the ski resorts, hotels, and restaurants that were hit hard by COVID closures. 

Euclid Hall Bar and Kitchen closed in March after 10 years on Larimer Square. (Jennifer Olson, Special to The Colorado Sun)

But many of those jobs are not coming back, said Lewandowski, with CU’s business school, which recently revised its 2020 economic update. Instead of adding 40,100 jobs, Colorado is expected to lose 128,500 jobs this year. 

Several restaurants have closed permanently, so there’s obviously no plans to rehire staff. Concert venues, convention hosts, entertainment venues, and other businesses that rely on large crowds aren’t operating in the same way so fewer employees are needed. Consumers have changed their behaviors by shopping online instead of in person. They’re not splurging on a vacation and plane tickets. They’re spending more on products, instead of services. Businesses will have to adapt. 

“I think we’ll regain all of those jobs lost, meaning that we will get back to our peak employment at some point, as we did after the Great Recession,” he said. “There is a resiliency where people do find a new path, and people who want to find a new job will find one. We will regain those jobs lost. But I also think it will take two, three, three-and-a-half years.”

Can’t pay rent or your mortgage? A guide to Colorado resources:

• Emergency Housing Assistance Program from Colorado’s Division of Housing and created during the pandemic. Offers rental and mortgage assistance

• Property Owner Preservation, a Colorado Division of Housing program created during the pandemic. Works with landlords to provide rental assistance on behalf of tenants

• 2-1-1 Colorado: Dial 211 on your phone to contact one of six call centers across the state that provide rent assistance to qualified applicants

• Salvation Army Housing Now program: Provides short-term retinal assistance

• Colorado Foreclosure Hotline (877-601-HOPE) offers resources and options for mortgage holders falling behind. 

• Colorado Apartment Association rental assistance resource list: caahq.org/main/colorado-housing-financial-assistance/

• Need Help Paying Bills Colorado: Offers links to more information about short-term assistance with utility bills, healthcare, and housing.

wilton real estate market

via The Wilton Bulletin

By Jeannette Ross | August 12, 2020

Wilton has not seen real estate numbers like these in a very long time. July was expected to be a big month, but it was stupendous.

There were 57 single-family homes sold in July, a 78.1-percent increase over the 32 sales recorded in July 2019, according to a report from Halstead Real Estate. That number just misses the 58 homes sold in July 2004, the best in recent memory.

July’s performance boosted Wilton’s seven-month total to 164 homes sold, an increase of 22.4 percent over the 134 homes sold January to July in 2019. As of July 31, there were 49 pending sales, compared to 29 a year ago. There were 171 active listings on July 31, compared to 221 on the same day last year.

The average closing price for the first seven months climbed 6.2 percent from $794,547 to $843,832.

Condos also saw a bump with 16 sales in the first seven months, compared to 11 in 2019. There were 22 condos on the active sales list as of July 31.

Condo prices also rose, from an average of $314,173 last year to $350,844 for the first seven months of 2020. That’s an increase of 11.7 percent.

John DiCenzo, Halstead’s executive director of sales for Westport and Wilton, said he was not surprised at the number “but that’s quite a leap above,” he said, of last year’s number. “It’s indicative of the frenzy,” he said, adding, “I haven’t seen a market that’s turned as quickly.”

He was referring to the pivot the market made from April to May. On April 30, 2020, there were 604 homes in the pipeline that indicates binder transactions and housing deals in contract in the 10 lower Fairfield County towns and cities the report tracks. That was 18 percent fewer than the 743 in the pipeline on April 30, 2019.

A month later, on May 31, 2020, there were 920 homes in the pipeline, 7.4 percent more than the 856 a year earlier, and 252 more than just a month earlier.

Price points

The $700,000 to $899,999 price range is the most active so far this year, with 52 homes sold this year of the 164-home total. In July, there were 16 homes sold in that price range.

The $500,000 to $699,999 price range is also very active, with 45 homes sold during the first seven months of this year, 18 in July.

There have been 30 homes sold in the $900,000 to $1.2-million range sold so far this year, almost double the 17 sold last year. Eleven were sold in this price range in July.

Lower Fairfield County

Every town in lower Fairfield County surveyed by Halstead Real Estate showed an increase in sales numbers in July, with the greatest percentage increase shown by Westport, with 95 sales this year compared to 32 last year, for a jump of 197 percent.

New Canaan’s increase was more modest, rising from 32 sales in 2019 to 46 this year, but it had the greatest increase in the average closing price, jumping 17.4 percent to $1,610,109.

Greenwich had the highest overall average closing price of $2,135,545, although this was down 10 percent from last year.

Future sales

The pipeline for continued energetic sales also looks promising. On July 31, the pipeline that indicates binder transactions and housing deals in contract stood at 118 for Wilton, compared to 43 in 2019.

On Aug. 1, there were 49 homes in contract, compared to 31 closings last year.

“I think we will easily eclipse 31,” DiCenzo said.

For lower Fairfield County, the pipeline showed a 68.4-percent increase with 1,420 houses under a binder or in the contract as of June 30. As of July 31, the pipeline showed a 120.8-percent increase with 1,387 houses in the pipeline, compared to 628 a year ago.

What is causing a bit of frustration among buyers is the lower inventory, DiCenzo said. In July, there were 175 active listings in Wilton, far fewer than the 227 at the same time last year. In 2018, the inventory was even higher, at 255; 237 in 2017; and 261 in 2016.

Total dollar volume

Wilton’s July home sales totaled $50 million, an increase of 79 percent over last year. For 12 cities and towns in lower Fairfield County, the total dollar volume of closings was $944 million, an increase of 55 percent over July 2019.

“This is the highest dollar volume of closings for July in at least the past 15 years,” the report said. The number of house closings — 828 — was also the highest total in the last 15 years.

Rental market

Halstead also included an analysis of the rental market with its monthly market report. It shows there have been 59 long-, short- and flexible-term rental closings for single-family homes so far this year. That is up almost 64 percent over the 36 recorded for the same period in 2019. The rental market heated up beginning in April.

What is significant is the increase in monthly rental prices, jumping from an average of $3,648 in January to $7,895 in April, $11,832 in May, $14,670 in June, and $9,770 in July.

The number of condo rentals jumped from eight in 2019 to 13 so far this year, but prices were flat at an average of $2,728 per month this year.

Multi-family rentals remained the same at two, this year and last year, and prices actually dropped from $2,323 in 2019 to $1,685 in 2020.

find out where 200 new townhomes are coming to Denver

via The Denver Post

By Joe Rubino | August 22, 2020

Demolition work is expected to get underway next week on a former Colorado Department of Transportation regional headquarters in southeast Denver, the first step in bringing 198 new homes to the area.

Arapahoe County-based builder Lokal Homes has been tapped to turn the former CDOT Region 1 complex into the Hub at Virginia Village, a collection of market-rate townhomes scheduled to rise on the property,  at 2000 S. Holly St. northeast of the Holly and East Evans Avenue intersection, over the next few years. It’s a rare infill housing development in a city where demand for for-sale homes seems only to have increased during the COVID-19 pandemic.

“We’re excited because we’re a local builder in the area,” Robyn Asbury, Lokal’s vice president of sales and marketing, said Friday. “It’s such a great location. We’re looking forward to creating a fun, liveable product that will fit in with in the neighborhood.”

If site work goes as planned Lokal will get started on its model homes in March, Asbury said, but the company doesn’t own the home sites yet.

Builder Capital, a Maryland company specializing in providing lot financing for home builders, partnered with investment firm 400 Capital Management to acquire the lots, according to a news release last week. The deal closed last month, Asbury said.

Builder Capital has a land banking agreement with Lokal and will sell the lots to the company in stages as development progresses, a strategy meant to keep pressure off of Lokal’s balance sheet and make it easier for the company to build homes at “attainable price points,” according to the news release. The three companies worked together last year on a land banking arrangement covering 425 lots spread across Aurora, Commerce City and Colorado Springs.

“Builder Capital is pleased to enhance its footprint in the western region of the U.S. with a great builder like Lokal Homes and is honored to be part of Lokal’s continual growth in the state of Colorado,” Bill Southworth, Builder’s managing director, said in a statement.

Before Builder Capital came into the picture, Denver developer Kentro Group acquired the property in early 2018 through a complicated, $19.3 million deal negotiated by city officials that also transferred CDOT’s now-former headquarters at 4201 E. Arkansas Ave. to Kentro. Kentro received City Council approval to develop a mixed-use project including 150 below-market apartments at the Arkansas Avenue property in December 2018.

Kentro is still the master plan developer for the South Holly site and is working with another group, McDermott Properties, to build a 63-unit affordable housing complex for seniors on the northern portion of the site, according to Kentro co-founder Jimmy Balafas. That project should break ground in fall 2021.

Kentro will share infrastructure expenses with Lokal, Balafas said.

“We selected Lokal as our partner because they are Denver natives, and they plan to build homes in an attainable price range, starting in the low ($400,000 range),” Balafas wrote in an email to The Denver Post.

City Councilman Paul Kashmann, whose District 6 includes both former CDOT properties, said Denver needs more housing for people at all income levels and he is looking forward to seeing more homes priced for working family built in Virginia Village. Real estate site Zillow pegs the median home value in the neighborhood today at more than $500,000.

“We’ve got all the $2,200-a-month studio apartments we need,” Kashmann said. “We need housing that allows people to begin building wealth for their family and security for their family.”

manhattan apartment deals plunge 57%, suburban real estate surges

via CNBC

By Robert Frank | August 6, 2020

Apartment contracts in Manhattan fell by more than half in July, while deals in many New York suburbs more than doubled, showing a continued flight from the city over the summer.  

The number of signed contracts for co-ops and condos in Manhattan — the best real-time measure of activity — dropped 57% in July compared with a year ago, according to a report from Miller Samuel and Douglas Elliman. The high-end of the market is getting especially hard hit, with co-ops priced at $4 million to $10 million down over 75%.

As deals dry up, the number of apartments listed for sale is surging. New apartment listings jumped by 8% in July compared with a year ago. The number of unsold apartments is now at the highest level in almost a decade, according to Jonathan Miller, CEO of Miller Samuel. At the current sales rate, there is more than a 17-month supply of apartments for sale — more than twice the typical Manhattan average of about eight months.

Miller said the lockdown in the city — which prevented brokers from showing apartments until late June — combined with hundreds of thousands of affluent New Yorkers fleeing the city for the suburbs during the coronavirus pandemic made for a tough July, and potentially the summer.

“The city is less of an anchor now,” he said. “It’s going to take longer for the city to recover than the suburbs.”

Suburbs around New York had a banner July, as New Yorkers purchased second homes for escape — and possibly a new primary residence. Sales contracts in the Hamptons more than doubled in July, with 267 deals. Signed contracts in Westchester County, New York, also more than doubled to 987 deals.

Connecticut has been an especially large beneficiary of New York City’s troubles. There were more than 1,200 signed contracts in July in Fairfield County, Connecticut, while Greenwich saw an increase of 72%. 

“Anything within a two-hour radius of the city is as busy as it’s ever been,” said Scott Durkin, president and chief operating officer of Douglas Elliman. “There’s just this fear of density right now.”

Still, New York real estate brokers say the city will recover quickly, once there is a vaccine and companies start bringing workers back to the office. They point to Sept. 11 and the Great Recession as proof that the city always rebounds. And they say the deep discounts that many buyers are hoping for aren’t likely to materialize since sellers have so far balked at big price cuts. 

“We had price cuts before Covid,” Durkin said. “With interest rates so low, prices may not be as negotiable as some buyers might hope. But there will be people in different situations, and some might need to sell.”

One segment that will likely have to cut prices is new condo developments. Brokers say new developments, which listed with sky-high prices during the past few years, will have to adjust to the more competitive market.

On Wednesday, the Getty Residences — a glamorous new condo building in downtown Manhattan designed by Peter Marino — announced price cuts of more than 50% on some units. One full-floor unit, with more than 3,800 square feet, had once been offered for over $20 million and is now listed for $10.5 million. The penthouse of the building was sold in 2018 for $59 million to hedge fund billionaire Robert Smith. 

news on new york city's real estate market

via Forbes

By Ellen Paris | August 15, 2020

Here’s the latest news on New York City’s real estate market from brokers with “boots on the ground.” After more than three months in lockdown when New York’s brokers and agents were not allowed to show properties, the market is up and running again—kind of.

Lisa Chajet an associate broker with Warburg Realty since 2003 sums up the current market. “I think the best way to look at is we were not allowed to work for almost three months.  Then around mid-June, we could start showings again with restrictions. We immediately saw a pent-up demand. I sold three apartments very quickly,” Chajet said. “Our Spring market got shuffled into June and now it’s August and its fairly quiet,” she continued.

According to UrbanDigs the real-time listing/residential analytics platform’s July report “contract signed activity up but still depressed, +93% month-over-month, and -39% year-over-year.” On the seller side, UrbanDigs reports, an “uptick in listings taken off the market suggests fewer real sellers than feared.” Chajet confirms this, “I had a few listings on the market which I advised my sellers if you are not desperate then take them off for now.” Some sellers who want an income and may have another residence are renting out their homes.

Is this a good time to buy for those committed to living in the city? According to UrbanDigs, “discount for post-COVID negotiated deals averaging 10-12%.”  Chajet points to buyers “who live in the suburbs of Westchester, Long Island, and Connecticut with grown kids who see this as their opportunity to move into the city.” Conversely, families who were considering leaving the city saw COVID push them out the door.

Michael J. Franco associate broker and former attorney with Compass works around the city in all price ranges. “The buyers that are out there think they will get a good deal. At the same time, I’m having the conversation with many sellers about doing long-term rentals,” Franco explains. “I'm telling my clients don't sell unless you have to.”

Those moving out of the city according to Franco are “families who are going to places like Rye and Greenwich.” The majority of buyers he’s working with in the city are interested in the under $1 to $2 million range. “I’m seeing singles or couples looking at studios or one-bedrooms. With properties going below listing prices and low-interest rates some can get into the market now where they could not before," he observes. In a higher price range, Franco recently put two deals into contract in the $4 million price point that was around 11 percent off the listing prices.

Allison Chiaramonte out of Warburg’s Madison Avenue office reports much of her current business is downtown. “I think people who are buying now see their future in New York no matter what.” Chiaramonte is seeing a pivot in what buyers want. “Some are moving away from larger buildings in favor of smaller boutique buildings with personal outdoor space and fewer shared amenities.”

As we head into the fall market and the unknown sellers and buyers sitting on the sidelines will be watching the numbers closely. “I grew up and have lived in New York all my life. I can say we will get through this,” exclaims Chajet. Words to live by.

denver real estate... how has 2020 changed things?

via U.S. News

By Andrew Fortune | August 6, 2020

Denver is one of the most desirable cities in the U.S. The economy is strong, business is booming and the mountains are breathtaking. However, has 2020 shaken things up a bit?

A drive through central Denver quickly reveals an increase in tents, housing the homeless. There is also an escalating tension among residents about how to handle the COVID-19 pandemic, as well as Black Lives Matter protests.

For many, Denver is starting to feel like a different city than it was just a few years ago. At the beginning of this year, no one could have predicted that 2020 would have evolved into such bizarre circumstances.

With all of these developments, there was bound to be some impact on the local housing market. Using data from the local multiple listing service for the Denver area, REcolorado, here's what you need to know about the current state of the Denver housing market, and what you can expect in the future.

Is It a Buyer's or Seller's Market in Denver Right Now?

In 2016 and 2017, Denver had one of the hottest seller's markets in the country. Homes would have multiple offers and net far above asking price. Home sellers relished the opportunity to cash in on their equity with lightning-fast home sales.

In 2018, the seller's market began to slow down and continued to do so up until the first few months of 2020. In the second quarter of 2020, the number of available homes began to drop again.

Denver is still in a seller's market, but it's not the extreme seller's market the area experienced in 2016.

Let's also look at this from another angle: Realtors use the term "months of inventory" as a way to measure a market's strength. This term references how many months of sales a market can sustain if no new homes are listed for sale before it entirely runs out of inventory. For example, if a market only has two months of inventory, and no new homes are listed, then it would run out of homes within two months. Agents consider it a seller's market when there are less than four months of inventory.

At the height of the housing market crash, Denver had a 6.4-month supply of inventory. This was a strong buyer's market. It was a time when buyers had plenty of homes to choose from and could often get a great deal.

At the busiest peak of 2016, Denver had a 1.3-month supply of inventory. During this time, homes would sell in hours with a pile of offers. It was a crazy time for real estate agents. Things were moving at a furious pace, and high-pressure deals were happening all over the city.

Today, Denver has a 1.7-month supply of inventory, so it's still a seller's market. It may not be the same seller's market that we saw in 2016, but it still favors the seller. According to MLS data, the last time Denver was in a buyer's market was May of 2012.

You may hear real estate agents in Denver talking about the current "slowdown" of the last few years. But their slowdown is minimal compared to an actual collapse like we experienced during the Great Recession.

Homebuyers continue to have a hard time finding homes in certain areas of Denver, but many sectors have experienced longer days on the market than we saw in 2016.

How Has COVID-19 Affected Denver's Housing Market?

On March 26, 2020, the governor of Colorado issued a stay-at-home order, valid through April 11. This mandate shut down all real estate showing activity for the first few weeks, and then later allowed showings with certain restrictions.

Many consumers were too concerned about the pandemic to think about their real estate needs. Real estate agents were waiting for clarity on how they should proceed with business. Eventually, the restrictions were lifted, and Realtors started selling homes again.

During this time, the Denver real estate market took a hit, but home sales bounced back after the stay-at-home order expired.

The demand for homes in Denver was too great for a slow down in sales to continue. People need homes, and the market can't be stopped.

In April, Denver lost nearly 1,350 home sales due to COVID-19 restrictions on businesses. In May, Denver lost an estimated 2,727 home sales. That's a combined total of 4,077 home sales lost in Denver due to the coronavirus pandemic.

From the chart above, it may seem like Denver took a substantial hit, but considering the circumstances, the city's real estate market held together quite well.

What Will Denver's Housing Market Be Like in 2021?

The real estate market in Denver started 2020 incredibly strong. As we venture into the third quarter, the market appears to be on track to finish even more robust than it started.

The median sale price in Denver peaked in 2018, but it's positioned to be higher in 2020 than it was in 2019, based on the current year-to-date statistics. The median home price in the city of Denver is $447,500 as of July 2020. It was $428,000 at the same time last year.

There is no indication that the demand for housing will slow down any time soon. As long as the need for homes continues to increase, the prices will continue to steadily rise. If the market does not slow down, the median price of a home in Denver will be around $470,000 by this time next year.

Looking at the chart above and the represented sales trends, it's hard to imagine prices dropping any time soon without some unpredictable event bringing it down. However, if we've learned anything this year, it's that the unexpected does happen.

What Factors Can Change Denver's Market in 2021?

Low interest rates continue to fuel the housing market in Denver. The Federal Reserve has made it clear that it does not intend to raise interest rates any time soon. If rates change, the local housing market will inevitably change as well. But for now, it's reasonable to expect the seller's market in Denver to extend through 2021.

The national economy is also a big question mark, as 2020 has seen our national debt skyrocket. The unemployment rate continues to be a lingering issue that has yet to be fully resolved. These challenges could have an impact on the Denver housing market next year, as well as that of the rest of the country.

The big question is, "how much of an impact will it have?" It's clearly too early to tell.

Copyright 2020 U.S. News & World Report

average home price in denver hits a new record of $606,000

via The Denver Channel

By Nicole Brady | Published September 3, 2020

Denver has gone from a seller’s market to an "extreme" seller’s market, according to the Denver Metro Association of Realtors' latest trends report.

The September report released Thursday shows that August 2020 saw the most home sales of any August on record, yet there were 40% fewer homes on the market than August 2019. Low inventory sent the average single-family home price to a new record high of $606,330.

When the average price is that high, that means there's not a lot of houses below that price left, said Jill Schafer a realtor with the Denver Metro Association of Realtors.

Schafer said she has struggled to find her clients something they like at the price they want to pay.

"There are no good deals left out there," Schafer said.

Schafer said buyers are paying above asking price and making concessions like waiving inspections and allowing sellers to stay in their homes longer if they need more time to move.

"(Buyers) have to be patient, have to trust their agent when the agent says, 'Go in at this price,' 'Give up these things,' if you really want this house," she said.

Mike Hills, a broker with Atlas Real Estate and Property Management in Denver, said it's not all bad news for buyers. Interest rates are low, and people are still moving to Denver, so those who can afford to get into the market will likely see home values continue to rise.

"Are you going to pay a little more than you want to? Yes, but buy for the long term and you will be OK," Hills said.

Hills said the pandemic has also changed what people are looking for in a home, leading some people to leave urban environments.

"If you live in a high rise apartment, but you're not allowed to use the gym, you’re not allowed to use the pool, the bar, and the social events aren’t happening because of COVID-19, then why do you live in these big high rises?" Hills said.

According to the report, those who can afford to buy a home are looking for features like a home office, space for kids to do remote learning, and a yard.

denver metro real estate market trends report

The Denver Metro Association of REALTORS Market Trends Committee’s August 2020 Market Trends Report is now available! This report is produced monthly for the previous month and encompasses the 11 counties of the Denver Metro Area (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park).

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“Homebuyers in metro Denver were not slowed by the pandemic in July as June’s record number of pending sales converted to an all-time high in the number of closings in any month on record, and the average single-family home price catapulted over 7.5% in on month to over $600,000!”

how the coronavirus has changed suburban real estate

via The New York Times

By Lisa Prevost | Published July 17, 2020 | Updated July 18, 2020

Thousands of New Yorkers left the city and headed to the suburbs during the pandemic, and real estate there hasn’t been the same since.

Shawna Padula and Keith Hymes, both 37, decided very shortly after the pandemic shutdown in New York that they would stop looking for a larger apartment in the city for their growing family and instead shop for a house in the suburbs.

It was late March when they headed out to Long Island’s North Shore to see a four-bedroom colonial with a big backyard in Manhasset. Real estate agents were then prohibited from giving in-person home tours, but the homeowner had agreed to personally show them around, provided they wore masks and gloves.

“It was the first and only house we looked at,” said Ms. Padula, who works in the apparel industry and is expecting the couple’s second child. “We really liked the area, and the house was move-in ready.”

They bought the house right away for $1.575 million and moved in late last month. Mr. Hymes had been reluctant to leave the city, but now they’re both relieved they bought when they did, as competition in the suburban commuter markets has grown fierce.

“I have a girlfriend who was looking to buy in Huntington,” Ms. Padula said. “In May she had scheduled to see five houses on a Saturday. She set them up on a Tuesday. By the time she went to look, there was only one left.”

The well-documented exodus from the city over the past few months is upending housing market dynamics in close-in suburbs in Long Island, Fairfield County, Conn., Westchester County, and northern New Jersey.

Areas that have seen declining values for years are suddenly attracting flocks of buyers. Multiple competing offers, a phenomenon last commonplace in the run-up to the housing market collapse, are the norm again for listings in turnkey condition, and especially if they’re priced under $1 million. Demand for single-family rentals is also unrelenting — and landlords are cashing in big-time.

Sales agents are fielding calls at all hours of the day and night, trying to keep pace with market conditions that seemingly changed overnight.

“Sellers are realizing the sudden new demand — it’s like catching lightning in a bottle,” said Jaime Sneddon, a broker with William Pitt Sotheby’s International Realty in New Canaan, Conn. “Who knows how long it’s going to last?”

No one has an answer to that question, largely because it begs so many other questions. Will the flow out of the city continue through the summer? What if there’s a second wave of the virus this fall? How many former city dwellers now renting in the suburbs will choose to become permanent residents? And of course, there’s the uncertain economy.

While the markets will settle down at some point, the suburbs might benefit for some time if the preference for urban living is significantly weakened by the virus’s brutal toll, said Jeffrey Otteau, president of the Otteau Group, a real estate valuation and consulting firm based in New Jersey.

“This was a life-altering series of events which likely made an indelible mark on everyone’s psyche, not unlike what happened after the Great Depression,” Mr. Otteau said. “That experience put an imprint on peoples’ minds that shaped their lives for decades to come. Possibly this is one of those events.”

Or not.

“When there is a vaccine, and let’s call it 2021, and this is resolved, does this thinking continue? My thinking is no,” said Jonathan Miller, the president and chief executive of Miller Samuel appraisers. “Only because we saw this after 9/11. We saw this outbound migration for three years and then it reversed.”

For now, here are five ways in which the flight from the city is currently disrupting suburban real estate.

It’s a Sellers’ Market

Courtney and Rob Silverstein began looking for a house on Long Island even before New York’s shutdown, as they began hearing about the virus’s impact in Asia and Europe. Then living in Long Island City with their infant son, the couple went to Rockville Centre in February for a Saturday open house at a three-bedroom, three-bath colonial. They returned Sunday for a second look.

“It was packed both days even though it was rainy and cold,” said Ms. Silverstein, 33, who oversees corporate social media marketing for Bloomberg. “On that Monday, we made an offer. There were other offers, so we did have to adjust our bid, but fortunately, they accepted ours.”

The simple laws of supply and demand have sent the pendulum swinging in sellers’ favor. The surge in demand from New Yorkers is heaped on top of pent-up demand from a spring market that was delayed by the pandemic ban on in-person showings. Add to that a reduced supply of listings and you have a market that is in no mood for lowball offers.

In Westchester, the number of signed contracts soared in the month prior to June 21, hitting a total that was 18 percent higher than the same period last year, according to data from William Pitt Sotheby’s.

“The scarcity of inventory has been fueling an already busy market,” said Owen Berkowitz, a co-principal of the Berkowitz Marrone team with Douglas Elliman, in Scarsdale. “Some potential listings fell by the wayside — people stopped readying their houses because everyone was shut down. I have clients waiting for more inventory.”

In Greenwich, Conn., closings of single-family homes were up 8 percent over last year during the second quarter, while inventory was down by nearly 18.5 percent, according to a Douglas Elliman market report. (Connecticut, unlike New York, never banned in-home showings.)

Jennifer Leahy, in Douglas Elliman’s Greenwich office, said she had received multiple bids on nearly all of her listings below $3 million in the past few months, including “houses that had been sitting on the market and weren’t turnkey.”

Above $4 million, buyers are still slow to pull the trigger, but below $3 million, “I don’t have enough inventory for my buyers,” she said.

The flurry of activity persuaded Nest Seekers International to add Greenwich to its network of brokerage locations. Eddie Shapiro, the company’s chief executive, said they had long thought about opening in Greenwich, “but the opportunity didn’t feel right until Covid happened. We’re just following our clients’ needs.”

In the inner-ring northern New Jersey suburbs in Bergen, Essex, Union and Middlesex counties, listings under contract were up 70 percent in May over April, as shutdown restrictions began to ease, Mr. Otteau said. The increased demand started in the entry-level tiers, between $400,000 and $600,000, but then spread through all of the other tiers, including the luxury sector above $2.5 million, he said.

“Now the largest increase in home-buying demand is in that luxury sector,” he said. “In Bergen County, we’re seeing a doubling in the sales pace year on year.”

Back Country Is Making a Comeback

For years, values in the so-called back-country areas — characterized by expansive homes on multiple-acre lots — have dropped off sharply, as buyer preferences shifted to in-town locations and more-manageable yard sizes. Inventory piled up. But with more buyers now looking for large outdoor spaces and swimming pools to help them ride out the pandemic, the backcountry is feeling the love again.

“I haven’t seen people looking for land in 12 to 15 years,” said Mr. Sneddon, in New Canaan, Conn., where the town’s four-acre zone has long lagged. “We just thawed a market that had been frozen over for a long time.”

In Greenwich, Conn., about 50 houses had sold on lots of two acres or more as of mid-June, compared with 40 at the same time last year, according to Mark Pruner, an agent with Berkshire Hathaway.

“The remarkable thing about that is the sales went up on those lots while we were having a pandemic,” Mr. Pruner said.

In Weston, Conn., long a sleepy market with minimum two-acre zoning and no downtown, more than 80 listings had accepted offers or were under contract as of June 22, at least triple the pace of last year at the same time, according to Cyd Hamer, an agent in William Pitt Sotheby’s Westport office.

In Westchester, where it “became vogue to live in the lower county,” where development is more dense, more buyers are now drifting north to large-lot towns like Bedford, North Salem and Pound Ridge, according to Mr. Berkowitz.

“After a great decline in interest in the big stuff, properties that were somewhat lagging on the market are now gaining interest,” he said.

“Dated” Is No Longer a Deal Killer

While move-in ready homes are still most in-demand, buyers are no longer turning up their noses at properties that need work. Limited inventory and shifting priorities have changed that.

“Younger-age buyers have really not wanted to take on renovation projects, so if a house wasn’t move-in ready, it would take longer to sell and would sell at a discount,” Mr. Otteau said. “It still has an effect on the selling price of a home, but the need for work is no longer an impediment to sale.”

For example, with swimming pools at the top of so many buyers’ wish lists, some are willing to put up with dated kitchens and baths to get that outdoor amenity, Ms. Hamer said.

“I joke that people are buying the pool and the house that goes with it,” she said.

In Manhasset, Ann Hance, an associate broker with Daniel Gale Sotheby’s International Realty, put a dated three-bedroom colonial on the market the weekend of June 12 for $1.599 million.

“It’s a house that needs work. It’s got a great backyard and nicely scaled rooms, but it needs updating,” Ms. Hance said. “I had seven offers that weekend. It’s going to close for substantially more than the list price, and it’s all cash. This wasn’t the case in 2019.”

Mr. Pruner said he was working with three couples looking for a home in Greenwich, and “two out of the three are looking for something that needs work because they think it will be a better price.”

Rents Are Through the Roof

The market for single-family rentals continues to be red hot in coastal Fairfield County (as well as Litchfield County to the north). Many homeowners who have somewhere else to go are putting their primary homes up for rent and collecting unprecedented sums. The inventory of summer rentals rose dramatically as owners decided to test the waters to see how much they could get, said Melodye Colucci, an agent with Coldwell Banker Residential Brokerage in Stamford.

“It has truly become the Wild West in Fairfield County,” Ms. Colucci said. “The Hamptons are pretty much sold out for summer rentals, hence the move here.”

Most renters are looking in the $4,000 to $7,000 a month range, which gets a modest-sized three or four-bedroom home, she said. But high-end rentals are extremely competitive, even as they command tens of thousands a month. Last year, between March 1 and June 26, about 50 single-family homes rented for $10,000 a month or more in Fairfield County — this year the number is almost 260, Ms. Colucci said. (The figures include both summer and yearly rentals.)

“Traditionally you would think these very well-to-do people who have these beautiful houses wouldn’t really need the money,” she said. “But if you can go to your vacation house and come back with $100,000 in the bank — well, there were a lot more families this year who decided that was a good idea.”

Ms. Hamer was contacted by a couple who live on Fifth Avenue — they wanted to rent for the summer but “didn’t like anything on the market, and said to me, ‘please find us something special.” She found a homeowner willing to rent them a waterfront property in Westport for $200,000 for 10 weeks — the couple was “thrilled.”

Emotions Rule

The rush to get into a house is causing many deals to be driven more by emotion than the usual business-minded pragmatism at the higher end, agents say.

“We do have the Wall Street crowd here and I have clients that still employ their spreadsheets,” comparing price per square foot and other metrics among listings, said Ms. Hance, in Long Island. “But there are people who clearly want to make the move and they’re going to do it regardless. Especially if the woman is pregnant or they have babies and there’s a strong emotional component to make a life change now. They want to close this summer.”

Many buyers in competitive price ranges aren’t even looking at comps — comparable properties that sold within the last six months — when deciding how much to offer on a home, said Ms. Hamer.

“They’re looking at the other active listings. They have their checkbook in hand and they’re saying, ‘what’s available in my range, and I’m going to pick one of those,’ ” she said. “It’s not something we’re used to at all.”

Fear can be highly motivating, said Ms. Colucci, in Stamford. She listed a $25,000 a month rental in Westport that received six offers in 36 hours; four of those offers were from people who hadn’t set foot in the house.

“One of the couples who lost out called right away and asked if I had anything else — they were in a co-op on Park Avenue and afraid of riding the elevator,” she said. “Fear is a huge driving emotion and people who can afford it will pay a huge premium to make that fear go away.”

record low mortgage rates in 2020

Over the past several weeks, Freddie Mac has reported the average 30-year fixed mortgage rate dropping to record lows, all the way down to 3.03%. Last week’s reported rate reached the lowest point in the history of the survey, which dates back to 1971 (See graph below):

What does this mean for buyers?

This is huge for homebuyers. Those currently taking advantage of the increasing affordability that comes with historically low-interest rates are winning big. According to Sam Khater, Chief Economist at Freddie Mac:

“The summer is heating up as record low mortgage rates continue to spur homebuyer demand.”

In addition, move.com notes:

“Summer home buying season is off to a roaring start. As buyers flooded into the market, realtor.com® monthly traffic hit an all-time high of 86 million unique users in June 2020, breaking May’s record of 85 million unique users. Realtor.com® daily traffic also hit its highest level ever of 7 million unique users on June 25, signaling that despite the global pandemic buyers are ready to make a purchase.”

Clearly, buyers are capitalizing on today’s low rates. As shown in the chart below, the average monthly mortgage payment decreases significantly when rates are as low as they are today.

A lower monthly payment means savings that can add up significantly over the life of a home loan. It also means that qualified buyers may be able to purchase more home for their money. Maybe that’s a bigger home than what they’d be able to afford at a higher rate, an increasingly desirable option considering the amount of time families are now spending at home given today’s health crisis.

Bottom Line

If you’re in a position to buy a home this year, let’s connect to initiate the process while mortgage rates are historically low.

not all real estate agents are created equal

In today’s fast-paced world where answers are just a Google search away, there are some who may question the benefits of hiring a real estate professional when selling a house. The reality is, the addition of more information can lead to more confusion. A real estate agent can be your essential guide, but truth be told, not all agents are created equal. Finding the right agent for you and your family should be your top priority when you’re ready to sell your house.

The right agent is the person who can truly walk you through the whole process, look out for your best interest, and seamlessly lead you through all the steps along the way. In today’s complex market, the way we execute real estate transactions is changing constantly, especially as more elements can be done virtually. Making sure you have the best advice on your side is more important than ever.

So, how do you choose the perfect agent?

It starts with trust. You must trust the advice this person is going to give you, and you’ll want to begin by making sure you’re connected to a true professional. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in this unique market. A true professional agent can, however, give you the best advice possible based on the information and situation at hand, helping you make the necessary adjustments and best decisions along the way. The right agent – the professional – will get you the best offer available. That’s exactly what you want and deserve.

What do you need to trust your agent to do?

1. Navigate the Process

There are over 230 possible steps that take place during a successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you have a positive selling experience?

2. Negotiate on Your Behalf

Today, hiring a trusted and talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step – from the buyer submitting an original offer, to the possible renegotiation of that offer after a home inspection, to the potential cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

3. Price Your House Competitively

There’s so much information in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s going on in our local area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process?

Dave Ramsey, known as the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring a trusted professional who has a finger on the pulse of the market and is eager to help you learn will make your experience an informed and educated one. You need someone who’s going to tell you the truth, not just what they think you want to hear.

Bottom Line

Today’s real estate market is highly competitive. Having a trusted professional who’s been there before to guide you through the process is a simple step that will give you a huge advantage when you’re ready to sell your house. Find out more about us and then let’s connect.

what's going to happen to the housing market?

One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some experts have to say about key areas that will power the industry and the economy forward this year.

Mortgage Purchase Originations: Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association

“The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before, we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.”

Home Sales: Lawrence Yun, Chief Economist, National Association of Realtors

“Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lock down and hence the cyclical low point…Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”

Inventory: George Ratiu, Senior Economist, realtor.com

“We can project that the next few months will see a slow-yet-steady improvement in new inventory…we projected a stepped improvement for the May through August months, followed by a return to historical trend for the September through December time frame.”

Mortgage Rates: Freddie Mac

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

New Construction: Doug Duncan, Chief Economist, Fannie Mae

“The weaker-than-expected single-family starts number may be a matter of timing, as single-family permits jumped by a stronger 11.9 percent. In addition, the number of authorized single-family units not yet started rose 5.4 percent to the second-highest level since 2008. This suggests that a significant acceleration in new construction will likely occur.”

Bottom Line

The experts are optimistic about the second half of the year. If you paused your 2020 real estate plans this spring, let’s connect today to determine how you can re-engage in the process.

homebuyers are in the mood to buy now

According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and they’re projected to remain low. This means there’s a huge incentive for buyers who are ready to purchase. And homeowners looking for eager buyers can take advantage of this opportune time to sell as well.

There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

 With mortgage rates hovering at such compelling places, ongoing buyer interest is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what FreddieMac is identifying as the buying mood:

“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”

There’s no doubt that even though buyers are ready to purchase, it’s hard for many of them to find a home to buy today. Mortgage rates aren’t the only thing hovering near all-time lows; homes available for sale are too. With housing inventory as scarce as it is today – a nearly 20% year-over-year decline in available homes to purchase – keeping buyers in the purchasing mood may be tough if they can’t find a home to buy (See graph below):



What does this mean for buyers?

Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the homebuying process, so you’re ready to go when you find that perfect home you’d like to buy. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when you’re ready to make your move.

What does this mean for sellers?

If you’re thinking of selling your house, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many buyers. Homebuyers are clearly in the mood to buy, and with today’s safety guidelines and precautions in place to show your house, confidence is also on your side.

Bottom Line

Whether you’re looking to buy or sell, there’s great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Let’s connect today to make sure you’re ready to make your move.

are you ready for the summer housing market?

As the health crisis started making its way throughout our country earlier this spring, sellers have been cautious about putting their homes on the market. This hesitation stemmed primarily from fear of the spread of the coronavirus, and understandably so. This abundant caution has greatly impacted the number of homes for sale and slowed the pace of a typically busy spring real estate season. Mark Fleming, Chief Economist at First American notes:

“As more homeowners are reluctant to list their homes for sale amid the pandemic, the supply of homes available to potential home buyers continues to dwindle.”

With many states beginning a phased approach to reopening, virtual best practices and health and safety guidelines for the industry are in place to increase the comfort level of buyers and sellers. What we see today, though, is that sellers are still making a very calculated return to the market. In their latest Weekly Housing Trends Report, realtor.com indicates:

“New listings: On the slow path to recovery. Nationwide the size of declines held mostly steady this week, dropping 23 percent over last year, a slight increase over last week but still an improvement over the 30 percent declines in the first half of May.”

Although we’re starting to inch our way toward more homes for sale throughout the country, the number of homes on the market is still well below the demand from buyers. In the same report, Javier Vivas, Director of Economic Research for realtor.com shares:

“Sellers have yet to come back in full force, limiting the availability of homes for sale. Total active listings are declining from a year ago at a faster rate than observed in previous weeks, and this trend could worsen as buyers regain confidence and come back to the market before sellers.”

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) seems to agree:

“In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”

What we can see today is that homebuyers are more confident than the sellers, and they’re ready to make up for lost time from the traditional spring market. Summer is gearing up to be the 2020 buying season, so including your house in the mix may be your best opportunity to sell yet. Interest in your house may be higher than you think with so few sellers on the market today. As Vivas says:

“More properties will have to enter the market in June to bring the number of options for buyers back to normal levels for this time of the year, nationwide and in all large markets.”

Bottom Line

If you’re ready to sell your house this summer, let’s connect today. Buyers are interested and they may be looking for a house just like yours.

financial advantages of homeownership vs. renting

There are many clear financial benefits to owning a home and we covered some of them in last week’s blog post. Additionally, we can add increasing equity, building net worth, and growing appreciation to the list. If you’re a renter, it’s never too early to make a plan for how homeownership can propel you toward a stronger future. Here are three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater stability, savings, and predictability.

1. You Won’t Always Have a Monthly Housing Payment

According to a recent article by the National Association of Realtors (NAR):

“If you’ve been a lifelong renter, this may sound like a foreign concept, but believe it or not, one day you won’t have a monthly housing payment. Unlike renting, you will eventually pay off your mortgage and your monthly payments will be funding other (possibly more fun) things.”

As a homeowner, someday you can eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how homeownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs will begin to work for you as forced savings, coming in the form of equity. As you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.

2. Homeownership Is a Tax Break

One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same piece states:

“Both the interest and property tax portion of your mortgage is a tax deduction. As long as the balance of your mortgage is less than the total price of your home, the interest is 100% deductible on your tax return.”

Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return.

3. Monthly Housing Costs Are Predictable

A third item noted in the article is how monthly costs become more predictable with homeownership:

“As a homeowner, your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a long period of time, unlike the unpredictability of renting.”

With a mortgage, you can keep your monthly housing costs steady and predictable. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet.

Bottom Line

If you’re ready to start feeling the benefits of stability, savings, and predictability that come with owning a home, let’s get together to determine if buying a home sooner rather than later is right for you.

We are with you every step of the way with a personalized and streamlined approach to our process – from our first connection to the day of closing, we don’t rest until you are smiling from ear to ear in your new home! 

the benefits of homeownership

More than ever, our homes have become an integral part of our lives. Today they are much more than the houses we live in. They’re evolving into our workplaces, schools for our children, and safe havens that provide shelter, stability, and protection for our families through the evolving health crisis. Today, 65.3% of Americans are able to call their homes their own, a rate that has risen to its highest point in 8 years.

June is National Homeownership Month, and it’s a great time to reflect on the benefits of owning your own home. Below are some highlights and quotes recently shared by the National Association of Realtors (NAR). From non-financial to financial, and even including how owning a home benefits your local economy, these items may give you reason to think homeownership stretches well beyond a sound dollars and cents investment alone.

Non-Financial Benefits

Owning a home brings families a sense of happiness, satisfaction, and pride.

• Pride of Ownership: It feels good to have a place that’s truly your own, especially since you can customize it to your liking. “The personal satisfaction and sense of accomplishment achieved through homeownership can enhance psychological health, happiness and well-being for homeowners and those around them.”

• Property Maintenance and Improvement: Your home is your stake in the community, and a way to give back by driving value into your neighborhood.

• Civic Participation: Homeownership creates stability, a sense of community, and increases civic engagement. It’s a way to add to the strength of your local area.

Financial Benefits

Buying a home is also an investment in your family’s financial future.

• Net Worth: Homeownership builds your family’s net worth. “The median family net worth for all homeowners ($231,400) increased by nearly 15% since 2013, while net worth ($5,000) actually declined by approximately 9% since 2013 for renter families.”

• Financial Security: Equity, appreciation, and predictable monthly housing expenses are huge financial benefits of homeownership. Homeownership is truly the best way to improve your long-term net worth.

Economic Benefits

Homeownership is even a local economic driver.

• Housing-Related Spending: An economic force throughout our nation, housing-related expenses accounted for more than one-sixth of the country’s economic activity over the past three decades.

• GDP Growth: Homeownership also helps drive GDP growth as the country aims to make an economic rebound. “Every 10% increase in total housing market wealth would translate to approximately $147 billion in additional consumer spending, or 0.8% of GDP, as well as billions of dollars in new federal tax revenue.”

• Entrepreneurship: Homeownership is even a form of forced savings that provides entrepreneurial opportunities as well. “Owning a home enables new entrepreneurs to obtain access to credit to start or expand a business and generate new jobs by using their home as collateral for small business loans.”

Bottom Line

The benefits of homeownership are vast and go well beyond the surface level. Homeownership is truly a way to build financial freedom, find greater satisfaction and happiness, and make a substantial impact on your local economy. If owning a home is part of your dream, let’s connect today so you can begin the homebuying process.

Learn about our in-depth buying process here.

summer is the new spring for real estate

With stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping back into the market. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.

Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:

“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”

Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually.

What’s the Opportunity for Buyers?

Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:

“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”

With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.

What’s the Opportunity for Sellers?

Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.

According to last week’s Weekly Economic and Housing Market Update from realtor.com:

“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”

If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Trusted real estate professionals can help you list safely and effectively, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list.

Bottom Line

If you’re thinking of selling, many buyers may be eager to find a home just like yours. Let’s connect today to make sure you can get your house in on the action this summer.