Saturday, January 21, 2012

Mid-Fairfield New Construction

New Construction has fared well against more recent resale properties in similar price ranges in Westport. Many of today’s buyers looking in similar price ranges seem to prefer owning a new home. The attraction lies in the combination of these homes having the most recent technology, design, & appliances, as well as in knowing that one can make their own mark on a house, that has driven these sales. In Westport, some of these homes are on streets that are in transition. Buyers coming from Manhattan, or Brooklyn understand that often when one new home is built on the street others will follow, thereby increasing the value
of the street.

There were 46 New homes sold in 2011 in Westport. The average sales price was
$2,131,011. 2010 volume was almost identical with 45 home sales, but the average selling price in 2010 was $2,500,153. There were fewer very high end new home sales in 2011, but the decrease in average sale prices has been influenced by two factors. The still shaky confidence in the housing market has led buyers to look for less expensive homes, and this in turn has had builders looking for smaller, less expensive lots which will allow them to build in the more affordable price ranges. The so-called ‘sweet spot’ in new construction is below $2
million. In some cases this has pushed down the prices of slightly older homes with kitchens and baths that might seem just a little out of date, compared to brand new homes.

The market for New Construction appears to be balanced. There are 61 homes currently listed for sale as New Homes in Westport. 12 of these homes have been on the market for 3 or more months, in their completed form. These are carryovers from the 2011 market. There would appear to be at first glance more than one year’s inventory available. However,16 of these new homes have not broken ground yet. One can surmise that builders are waiting for some sell off of the current inventory to start building. If one takes those 16 into account there remains 45 new homes currently on the market. Based on the sales of 2010 and 2011
we should see almost all of the current inventory sold off before the end of 2012. That bodes fairly well for builders. Remembering the effects of the 1980s the majority of builders are working on speculative homes one at a time. There are a handful of builders with deeper pockets working on multiple projects. Though there have been some builders that have been in financial difficulty (there are currently 2bank owned new homes on the market), they represent a smaller percentage than the builders of the late 1980s.

Westport continues to be the locomotive for new Construction in this area. Speculative builders have avoided building in Weston for several years, though there are a couple of local builders who slowly bring new product to the market. The same is true in Wilton. Fairfield has seen a few new homes built in the beach area and in Greenfield Hill, but it too is very limited.



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