Constrained by incredibly low levels of inventory, the number of homes sold during the third quarter of 2022 in Darien, New Canaan, and Rowayton was down 30%, 39%, and 16%, respectively, versus the same period last year, according to the Houlihan Lawrence Q3 Darien/New Canaan/Rowayton Market report.
However, despite high inflation, stock market declines, and the Federal Reserve’s continued interest rate increases, demand for homes in these markets continues to outpace supply. Appropriately priced homes across most price points continue to attract more than one bidder, with cash buyers still active in the marketplace.
In an interesting trend, the report noted a decline in the number of “trade-up” buyers within local markets. Seemingly, those who already own a home with a favorable mortgage rate are reluctant to trade their existing loan for a new one with a significantly higher rate.
“It is widely accepted that, in a normal year, spring and fall are the most active selling seasons in local real estate markets. However, the last couple of years – namely 2020 and 2021 – have been anything but ‘normal’ due to the massive influx of local homebuyers escaping the city during the pandemic. As we began 2022, we believed that local real estate markets would ‘normalize’ a bit with a return to seasonal increases in homes for sale in spring, and we hoped, in the fall. Unfortunately, for homebuyers, this has not been the case,” said Liz Nunan, President and CEO of Houlihan Lawrence.
Nunan said the continued low supply of homes for sale should help prices remain stable in the near term. “In our view, the art of pricing a home for sale will become more challenging as recent comparable transactions, which may have been driven by “pandemic urgency,” become less relevant. The successful seller may want to consider more historical sales data in developing a proper pricing strategy going forward,” she said,
Q3 MARKETS AT A GLANCE
DARIEN
Homes Sold: Down 30.3%
Median Sale Price: Down 11.6%
NEW CANAAN
Homes Sold: Down 38.8%
Median Sale Price: Up 16.3%
ROWAYTON
Homes Sold: Up 16%
Median Sale Price: Down 1.4%
