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R2 | Greenwich Time | Friday, January 7, 2022
REAL ESTATE
ADVERTISING SECTION
LUXURY LIVING
New year, new real estate market Local Realtors ponder the market as the calendar year turns, with the spring market on the horizon
Contributed photo
Sotheby’s Realtor Suzanne Katz’s own home is currently listed for sale at 18 Ivanhoe Lane, Greenwich — a three-bedroom single-level home and attached two-car garage on 1.91 acres.
By Gretchen A. Peck Greenwich Time asked local Realtors to take “the market’s pulse” as the new year begins. Suzanne Katz and Stephen Archino of Sotheby’s International Realty, and Evangela Brock, a Realtor with Douglas Elliman Real Estate, weighed in on the market’s current health and offered some glimpses into the year ahead. Greenwich Time (GT): We continue to see low inventory across Greenwich. Do you expect that trend will be reversed in 2022? Are there sellers who are strategically waiting to list their homes for sale closer to spring? Suzanne Katz: “I think the trends that have driven the huge change in the Greenwich market are not showing signs of slowing or reversing just yet. Every market changes eventually, but there’s nothing I could point to that tells me the tide has reversed. Having said that, I will be surprised if the market appreciates in 2022 at the same break-neck pace as 2020 and 2021. Evangela Brock: “The experts have predicted that 2022 should be a similar market that we experienced in 2021. Low inventory, along with interest rates at an all-time low, along with the change in the way we live and work has fueled the market.” Stephen Archino: “I believe that the trend will remain the same: low inventory with great demand. One observation is that starting sometime in July, the real estate market has started to behave like a typical Greenwich market. What I mean by that is, for the first time since 2019, people were able to travel, so things did slow down just a bit in the summer, as it traditionally does, and then picked up again in the fall. “The inventory remains low, for sure, and I anticipate that in the beginning of 2022, as in a more typical, normal, healthy real estate market, new inventory will hit the market. With that having been said, it is hard to predict at which price range. If you think about it, our inventory goes roughly from $400,000 to $50 million. We have sellers, for sure, who have photographed and
prepared their properties toward the end of last year, in anticipation to hit the spring market. That time starts toward the end of February.” GT: What market metrics do you think are telling right now or are indicative of the state of the market — average days on market, or average sales price over list? Suzanne Katz: “The best metrics, not necessarily in order of importance, are inventory of homes for sale versus historical levels; average days on the market, and sale price to assessed value. As Realtors, we don’t use the town’s assessed full market value as a guide for any one particular home, because there are too many factors the assessor isn’t equipped to take into account. However, the ratio of the sales price to full assessed value is a very interesting statistic when one is looking across a wide range of transactions.” Evangela Brock: “The most crucial data is inventory and the current shortage. Low inventory causes the prices to go up. It facilitates houses selling for over list price, shortens the days on the market, and causes bidding wars. “If we look right now in Old Greenwich, south of the Post Road, there are five single-family homes on the market. At specific price points between $1 million and $1.5 million, there are 11 single-family homes in Greenwich (based on data from the GMLS on January 2, 2022). Stephen Archino: “The average days on market remains low, especially for properties that are properly priced, no matter the price range. More than ever, I think it is critical for the sellers, as well as the buyers, to be educated by their agents. We help people make good decisions.” GT: For sellers considering listing early in 2022 or in advance of the spring market, when should they start the process of getting their homes ready for the market, engaging a Realtor, and begin to plan for how the home will show and be marketed? Suzanne Katz: “When the market is as strong as right now, I would not suggest that a prospective seller wait for the spring market. I just listed a home on December 30th. In a typical
Contributed photo
Stephen Archino, a Realtor with Sotheby’s International Realty in Greenwich, represents the seller of 3 Juniper Hill Road, a five-bedroom stone colonial in mid-country. The property is currently listed for $4.29 million.
Contributed photo
3 Juniper Hill Road in Greenwich is actively listed for sale, for the first time in more than 25 years since the home was custombuilt. Sotheby’s International Realty is the listing brokerage.
market, a year-end listing would have been a silly time to list a home. … Yet, I’m finding strong interest. I showed the home to prospective buyers on New Year’s Day. In the past, that would’ve been unheard of.” Evangela Brock: “I recommend that anyone thinking of selling should start now. I advise meeting with an agent and getting the house ready to be on the market. When selling a house, the prettiest house wins, gets the most eyeballs, and the most and highest offers. It is worth it to the seller to take the proper steps to position themselves for success.”
Stephen Archino: “Our sellers who are considering listing early in 2022 have already started the process, from photography to copywriting, to painting and staging — everything and anything to get the house ready for the market. It’s never too late to start, so if it’s something you’re thinking about, call your Realtor.” GT: Financial pundits and analysts are predicting that interest rates will increase this year, possibly as many as three times. If you’re someone who is considering buying a home or investing in a residential property, why is this important to
know and get out in front of? Suzanne Katz: “I’m not in the business of forecasting interest rates, but present interest rates are certainly at very attractive levels. Even if the Fed raises rates several times this year, mortgage rates will still be attractive when viewed on a historical basis. Of course, it’s desirable to lock in longer-term financing at anything like these historically favorable rates and enjoy the benefit of a lower-cost of ownership for years to come.” Evangela Brock: “Discussion of higher interest rates will fuel the market, with buyers who will want
to lock in rates before they go up. If interest rates do go up, it will affect the ‘buying power.’ And if interest rates go up, historically, they will still be low. However, I predict that the market will remain strong due to the number of cash deals in Greenwich and the ability of the buyers to absorb a slightly higher interest rate.” Stephen Archino: “It is important to keep in touch with your local banks and mortgage brokers. Even if rates go up as they’re supposed to, the interest rates are historically low, and it is still the ideal environment to buy.”