Year End Report 2011

YEAR END REPORT 2011 The real estate market has stabilized. We are getting more of the distressed properties sold and out of the bank system. It was predicted that Shadow Inventory (foreclosed or ready for foreclosure homes) would flood the market. Well, it never happened. Foreclosure filings in Connecticut dropped sharply in 2011 compared with the previous year, plunging 48%, according to RealtyTrac. New Canaan Market, 10-Year Average New Canaan saw year over year increases in every category, a trend suggesting a growing optimism on the part of sellers for 2012 market conditions. Here are some important numbers for the past year: 2011 Single Family Homes: Median Price: $1.60 million as compared to $1.46 million in 2010, up 9.4 % Average Price: $1.90 million as compared to $1.69 million in 2010, up 11.9% Homes Sold: 214 homes sold in 2011 as compared to 195 a year ago, up 9.7% Absorption Rate: 10.7 months of inventory compared to 15.38, down 30.4% Active Inventory: 207 houses for sale compared to 236 a year ago, down 12% 2011 Condominiums: Median Price: $657,000 as compared to $595,000 in 2010, up 12 % Average Price: $711,000 as compared to $656,000 in 2010, up 8.2% Condos Sold: 62 condos sold in 2011 as compared to 39 a year ago, up 59% Absorption Rate: 7.88 months of inventory compared to 21.94, down 64% 2011 Land Sales: Perhaps the most dramatic increase has come in the market for land sales, again indicating an increased optimism on the part of builders and their customers. The median sale price for the 3 lots sold in 2010 was $1,025,000. For 2011 the median price fell 31% to $700,000 and builders did respond, buying 19 lots this past year, an increase of 533% in volume. New construction activity has picked up as a result; builders are buying land at a cost that makes sense to build, primarily midrange homes. 2011 Rentals: The rental market has improved. The absorption rate for rentals has dropped from 7.4 months to 4.1 months. That is howlong the current inventory of properties would last at the current rate of sales. The number of rentals closed in 2011 increased 16.5% to 120 from 103. And while the average rental price has increased 40% to $3550, the median rental price has increased 162% to $4200. The rental market tells us a good deal about the broader market. The reduction in the rental inventory and higher rental rates is due to the following factors: Owners losing their homes due to foreclosure and short sales can only rent. Tough lender qualification requirements, causing fewer buyers and more renters. Many have lost their equity in real estate and stock market = no down payment to purchase. Many have damaged their credit and will not qualify to purchase. Many have lost their job and are not able to get a loan. The rental market is staring to produce much better cash flow and investors are actively purchasing more rental real estate. 2011 Interest Rates: Interest rates broke their historical lows of 2004-2005. The rates on average are about .5% to .75% below last year rates. A sample of rates as of first week of November 2011 with zero points: Loans under $417K=3.87% (conforming loans). Loans between $417K to $625K=4% (this is the new Jumbo conforming) Loans above $625K=4.5% (this is Jumbo loans). This year was a much better year than last year and we expect it to continue to get even better next year. The reason? We're experiencing an improving economy, lower interest rates and an upcoming presidential election. Historically, presidential elections bring about increased real estate activity, and coupled with low interest rates and increasing consumer confidence, it will help the New Canaan market to continue to grow in the coming year. Wishing you and your family a prosperous 2012! John Engel and Susan Engel

Sold: 15 South Avenue, New Canaan

For Sale: 15 South Avenue, the Heart of Downtown New Canaan

15 South Avenue is a fully leased, 4,390 square foot, four tenant retail building situated on .081 acres in the heart of the downtown shopping district of New Canaan. The asking price is $3.95 million. For more information on this or similar buildings in New Canaan, give me a call at Brotherhood & Higley (203) 966-3507 or email me.

New Canaan Home Sales: What Sold in 2011?

The median sales price is up 9.4%
The average sales price is up 11.90%

Days on market fell since this time last year, 5.64% average and 7.14% median drop.

And, although not shown on this report, the Absorption rate shows we are down to 12 months of inventory, down from 14.4 months.

Results are In...

Results are in and we didn't win. Thank you all for your support over the last month. It was wonderful to hear from so many of you during the campaign, to hear your ideas and talk about what makes New Canaan great. My opponent Nick has done a great job with the Board of Education and I am sure he'll bring the same care and diligence to the job of Selectman.

Engel Has Ear to the Ground

Editor, Advertiser,

I am writing this letter in support of John Engel for Selectman. John is a person who's involved himself in the town of New Canaan for many years. By way of example, he's a regular at the New Canaan Advertiser coffees; but what's important for voters to know is that he's attended the coffees for years. Informed citizen first, John sees being selectman as a way to effect change, rather than a political endeavor. John is a civic leader with an indisputable downtown presence; it was no surprise to see the letter of support signed by so many merchants. Anyone in town on any given weekday will likely see him somewhere. He's a man with his finger on the pulse of New Canaan and the town will do well to have his thoughtful perspective and keen business sense in the Office of Selectman.

Mike O'Neill

Engel Thinks Without Bias

I am a realtor in town, active in the Republican party, a Saxe mom, and a member of the Zoning Board of Appeals. It is in that context that I urge you to vote for John Engel for Selectman. Anyone who has been to a Zoning Board of Appeals meeting knows that John comes prepared, takes a very active role in the discussion, and approaches each case with thoughtful consideration and without bias. Vote for John Engel this Tuesday.

Laura Edmonds

Engel: Integrity and Perseverence

Editor, Advertiser,

I was John Engel's roommate in college and best man at his wedding. Two words sum John up: integrity and perseverance. I saw John confronted with issues that might compromise his integrity. Each time he did the right thing. Faced with choosing dubious, short-term gain versus doing what's right, John always chose what's right. John never gives up. I remember a 1991 letter he wrote to me from Saudi Arabia where he was serving as an Army officer during the First Gulf War. Things were bleak: US forces were poised to enter Kuwait and they did not know exactly what they would encounter. It was frightening but John never waivered. Under enemy fire, John's unit moved through sandstorms and oil field fires until they liberated Kuwait City.

New Canaan will be well served with John Engel as Selectman.

Robert A. (Andy) Nilsson