Greenwich Real Estate w/Scott Elwell (November Report)

By Scott Elwell - 11.23.11 - 2 Comments »

The biggest problem I have with the Greenwichreal estate market right now is the lack of inventory.  There is not enough good inventory on the market to satisfy demand.  Technically we have more houses listed on the market today than there were a year ago, but this does not tell the full story.  A significant portion of these homes are over-priced, as the sellers are not willing to let the houses go for current valuations. The houses on the market that are well priced are going fairly fast.

In an age when buyers go online to start their search well in advance of when they intend on buying, it is more essential than ever to price your home appropriately.  Today’s buyer is savvier than ever and has been paying attention.

I can understand when a seller does not want to sell at a lower price and why they would also be willing to let their house sit for the right buyer.  I can’t say that buyers don’t come along once in a while and purchase homes at higher prices than the normal market would bear.  In my opinion, there is nothing wrong with this.  The price that a house is listed for is (and should be) determined by the seller, not by the realtor.

The reason that I bring this up is not to get sellers to lower their prices (that is their prerogative), but to point out that the well-priced inventory on the market is actually very low.  Normally this would signal a potential up-tick in valuations, but I’m not sure that is going to happen any time soon.  We really need some positive movements in the financial sector to help lift consumer confidence before that happens.

In my opinion, we are in a period of stagnation that is almost entirely controlled by the buy-side.  Buyers who don’t find the inventory they want at the price they want are simply waiting.  With consumer confidence low, there is no motivation to bid up, as there might be in typical low-inventory times.  In addition, with no increase in interest rates in sight, buyers are feeling “confident” that they can take their time and will still be able to finance at rates south of 4%.  Contrary to many of my counterparts, I am hoping for an up-tick in rates as I feel that might spur buyers off the fence.

In the meantime, the houses that are on the market and well priced are actually moving fairly fast.  I’ve seen several trades in the past two months that have gone to contract within weeks of hitting the market.  The buyers who are willing to jump now are finding some great opportunities.  Eventually they will be rewarded when consumer confidence rises and we start to see more of a stabilized supply-and-demand relationship.

I wish everyone a wonderful Thanksgiving.  Eat up, stay warm, and be safe.

Sincerely,

Scott

Scott Elwell 

Senior Vice President @ William Raveis
Founder/Real Estate Agent (MBA) – GreenwichCT.com
45 Field Point Road, Greenwich, CT 06830 | Licensed in CT & NY
Mobile: 203.940.0444 | Fax: 203.930.2808 | Email: scott@elwell.com
My 2011 Activity – Bio

2 Responses to “Greenwich Real Estate w/Scott Elwell (November Report)”

  1. Old Greenwich CT Homes for sale | Greenwich Blog | Greenwich Real Estate - Scott Elwell Says:

    […] Old Greenwich CT Homes for sale By Scott Elwell Technically there are 60 houses on the market in Old Greenwich right now. When you remove condos and homes in North Mianus (northern part of Old Greenwich and Riverside) there are 39 houses on the market. Removing all houses that have been on the market for at least a year and you get 29.  Of those 29, I think approximately 18 are well priced. For those of you that know, Old Greenwich is a fairly large area within Greenwich, CT and should really have more than 18 houses on the market. There is a big debate going on in the realtor community about inventory. It is my belief that while we have a lot of homes listed on the market right now, there is a surprising low level of inventory of houses that are priced to sell. If you are interested in more of my thoughts on this take a look at my latest monthly report. […]

  2. Greenwich CT Real Estate Report | Greenwich w/ SCOTT ELWELL | Greenwich Blog | Greenwich Real Estate - Scott Elwell Says:

    […] Last month I wrote about the surprisingly low “true” inventory level and while I could go on and on about that issue, I’m going to try to change topics here to something that I’ve been dealing with for a long time, which is the lack of data/information.  Residential real estate is a funny animal as there is never enough good data out there to price a home perfectly.  The problem is two fold.  First, and obvious, is that there just aren’t enough houses trading to come up with the proper data set to run a full blown analysis (you might be able to do this in large cities with more commodity level real estate like apartments and condos) regardless of what is happening in the market. […]