Greenwich, Connecticut Real Estate Market Update Plus How To Win the Bidding Wars in a Sellers’ Market
The 2022 real estate market has presented a lot of the same challenges we faced the year before – but even more magnified. Across the country, home-buyers have been left to navigate the market meticulously and strategize their every move. How has the Greenwich, Connecticut market fared comparatively? Greenwich mirrors a lot of the same challenges and activity of similar cities across the U.S.
If we take a look at the first four months of this year in Greenwich, only 202 single family home sales took place according to Compass real estate – a 30% decrease from last year.
The numbers across the board resemble a similar story. Year to date, sales over $5 million in Greenwich, CT are down 36% compared to 2021. The median price sold for April in Greenwich was $2.2M and the average price was $2.9M. If we take a look back to April of 2021 the median price was $1.9M and the average price was $2.4M.
There’s no doubt this year has proven to be a more competitive real estate market in Connecticut than 2021 so far. A quick search for Greenwich Connecticut real estate will reveal only 170 single-family homes currently for sale compared to 335 just a year ago.
The good news is with the right support and a well thought out gameplan, owning your dream home is still within reach. This year, I’ve helped many clients secure their home even in this competitive market. I’m letting you in on some of the strategies I use to prep my clients for ultimate success.
What does it mean to be in a sellers’ market?
So what exactly are the guidelines for being in a sellers’ market? And how do experts determine what is or isn’t a seller’s market? The answer lies in taking a look at the current inventory and some simple math. Divide the properties currently for sale by the properties that have closed in the last month. If the number is a 7 or above it’s a buyers’ market, a 5 or below indicates a sellers’ market. Anything in between is a neutral market. Currently in Greenwich, CT doing the math results in a score of 2.83. An ultra-competitive sellers’ market.
How to secure your dream home in an ultra-competitive sellers’ market
Don’t fall in love with a house after seeing it
Buying a home in an ultra-competitive housing market means playing the long game. I’ve had clients get outbid on a handful of homes before finding their perfect match. This can mean quite the emotional roller coaster for home buyers. The key to keeping your sanity is not becoming attached to a home before the contracts are signed. This one can be such a toughie because the home buying process is an exciting one! You’re looking at potential spaces you’ll spend tons of time in. But going into a competitive market with the right mindset is key. Deep breaths – you will find your home.
Be willing to bend on specifics
Ahh, yes – this one can be tough! We all know what we’d like to have in our dream home – and finding a home that has 8 out of 10 is still a win! A smart approach to mapping this out is to write down your list of absolute must-haves and also your wants. Having a clear picture of what you’re not willing to compromise on and what is negotiable helps clear the path to your ideal space. And flexibility is key!
Have your financing lined up
Verify your finances and creditworthiness before you begin making moves. If applying for a mortgage, most seller’s agents won’t let you inside a property without a preapproval from the bank. In a hot market, a great strategy is to bid on homes under your budget so you have plenty of flexibility to bid up. Allowing yourself plenty of financial breathing room is ultimately a winning hand in today’s real estate market.
Venture beyond your desired neighborhood
Being location flexible can widen your list of potential homes. And that’s a good thing! Take a look at what neighborhood traits you’re looking for and check surrounding areas to see if they match up. Oftentimes, buyers are perfectly satisfied in an area that might not have been on their radar to begin with. A savvy real estate agent can help guide you to an area that still checks all the boxes. If your desired location is truly non-negotiable, working with a top, in-the-know agent in the area can allow you access to homes before they even hit the market. (wink, wink)
Look for ways to sweeten the deal
Offering to waive contingencies and giving the seller conveniences – including a rent-back agreement – can set you apart from other bids. Rent-back agreements, which allow the seller to rent the home after closing, are increasingly popular for sellers as it gives them the flexibility to house hunt. A great real estate agent will investigate what is important to the seller to help create an offer they can’t refuse. Creating an offer tailored to each seller’s needs will help secure your spot as a top contender. In many cases a winning bid is a combination of offering over-asking price, keeping the home inspection simple and suggesting a timeline that works for the seller.
Stay patient
While it’s crucial to make an offer on a home quickly if you’re interested, acting out of desperation will lead to trouble. You’ll likely be living in your new home for several years – which is an excellent reason to not jump the gun on a home you’re not wild about. Keeping your head in the game after losing out on a bid is equally as important. According to a survey conducted by the National Association of Home Builders, 67% of active home buyers were on the hunt for more than 3 months in the first quarter of 2022. Savvy buyers use this time to continue to add to their down payment funds and clarify what they’re really looking for.
The Greenwich Connecticut real estate market continues to be highly competitive but plenty of homebuyers are achieving success with the right guidance. Focus on the details you can control. Give the process time. Keep a positive mindset. And most importantly, have a stellar real estate agent with experience in winning the bidding wars. Reach out today to start your customized journey to homeownership!