Houlihan Lawrence: Strong Sales In Darien, New Canaan & Rowayton

Press release from Houlihan Lawrence:

July 14, 2020

The impact of COVID-19 on local real estate markets evolved significantly during the second quarter. What began in March as flurry of urgent requests for rental properties from NYC residents seeking to escape the city, broadened during the quarter to include a significant increase in purchase activity across all price ranges, according to the Houlihan Lawrence Q2 Market Report for Darien, New Canaan and Rowayton.

While the number of closed transactions in the first half of 2020 declined versus the same period in 2019, it is important to remember that closings often occur 90 or more days after a contract is signed. The number of pending transactions is a better indicator of real-time market activity.

As of June 30, the number of pending transactions in Darien, New Canaan and Rowayton increased 59%, 33% and 160%, respectively, versus the same date last year. This surge in pending activity will result in an increase in closings data during the third quarter.

Interestingly, the report noted a significant shift in buyer behavior and preferences during this unprecedented time. Attributes which had become undesirable to buyers in recent years, such as ample interior space and sizeable acreage, are now in greater demand since the pandemic. Local buyers’ new focus on one or more home offices and amenities, such as a pool, tennis court or home gym, seem to reflect the new reality of spending more time at home. Clearly defined spaces have a new importance and, seemingly, the popular open floorplan is being rethought.

The transitioning market remains extremely price sensitive, despite anecdotal reports of multiple bid situations and sales at, or over, asking prices. Strategically priced homes and/or meaningful price reductions continue to be a key driver of offer activity.

As of the end of the quarter, it appears that the 2020 spring market, which coincided with the start of the shutdown, got off to a late start and could therefore extend later than normal. In a typical year, the fourth of July holiday usually marks a slowdown in buyer activity as we transition into summer’s slower pace. Whether local markets will follow normal seasonal patterns this year remains difficult to assess. Regardless, our communities remain popular among homebuyers and have become even more appreciated by residents and visitors alike during the pandemic. Put simply, this remains a wonderful place to call home.

Markets at a Glance Q2-2020 vs Q2-2019

DARIEN

Homes Sold: Down 5.4%

Median Sale Price: Up 9.2%

NEW CANAAN

Homes Sold: Up 7.5%

Median Sale Price: Down 3.6%

ROWAYTON

Homes Sold: Down 33.3%

Median Sale Price: Up 0.8%

This press release was produced by Houlihan Lawrence. The views expressed here are the author's own.