By Martha Drake
Sotheby’s International Realty
The value of a home is determined by what a buyer is willing to pay for it. Buyers come with wish lists and must haves when looking for a home. How the current inventory of homes matches up with those buyer wish lists determines which houses will sell and at what price. Where the most buyers overlap in their demands is what creates market trends, competition and hot properties in the home selling market. Sellers need to know what buyers want in a house in order to know where their home fits in terms of marketability, timing and ultimately, price. Real estate agents, both with listings and buyers, have to be able to match buyer must haves with homes on the market to close sales.
Thus far in 2015, Greenwich homes have successfully fulfilled the wish lists of many buyers. As of September 1st, Greenwich has an average price of a single family home is over $2,600,000 with a year to date sales volume approaching $1 billion. Seeing what drives these sales is a fascinating look into our town.
Location has always been the mantra in real estate and remains among the most important criteria for buyers. From a larger perspective, location choices encompass factors such as proximity to work, town amenities like beaches, parks and recreation, as well as property taxes. These are often the initial reasons buyers choose Greenwich, with easy commutes to Manhattan and local businesses, extraordinary public facilities and one of the lowest property tax rates in Connecticut and certainly lower than New York.
But what else defines a prime location? Classically, prime Greenwich locations include waterfront associations and streets with stately homes at the highest price points. But prime locations exist across price ranges, as many of our neighborhoods are comprised of houses at variety of price points. Looking at all sales and prices across the 50 square miles that constitute Greenwich, there is a demonstrable pattern of buyer preference for close to town locations and generally smaller lot sizes. As of September 1, 2015, there were 429 single family homes sales town wide; approximately 62% of sales were of homes with less than one acre of land. Only 39 homes (9%) have sold north of the Parkway, with zoning for large 2 to 4+ acres lots.
This shift can be attributed to a growing buyer preference for a home closer to the train, schools and shopping; buyers are emphasizing convenience in everyday living. This profile might include a busy 2 career couple balancing commuting and children’s sports schedules or a buyer looking to downsize to a simpler in town home, close to Greenwich Avenue. Sales in central Greenwich and parts of Riverside, Old Greenwich and Cos Cob benefit from this preference. This shift is also reflected nationally by sites like Zillow (zillow.com/greenwich-ct) that now rate the “walking score” or convenience factor of home locations. Expansive properties with long driveways and rolling lawns will always be part of the Greenwich landscape. But many buyers now happily fore go that option for smaller yards in densely packed neighborhoods that offer nearby shops, easy play dates for kids and quick trips to the school and train station.
School options often determine location choices for buyers. Buyers with school aged children are focused on the quality of local schools, both public and private; the highly ranked public school system and several quality private school options make Greenwich the location of choice. Within town, buyers often research neighborhood school test scores and academic awards, and then focus their search even further by proximity to the districts and schools with the highest performance.
Buyers want homes in excellent condition, which means either newer construction or recently renovated homes frequently are among the top choices. Over 35% of this year’s sales include homes either built or renovated since 2010. Generally, new construction continues to sell quickly and with a higher sale price per square foot. Some recent sales of homes built within the last 5 years have garnered between $650- $900 per square foot, as buyers have assigned higher values to a home with quality finishes, new fixtures and mechanicals. Following close behind in sales are homes with significant updates in key areas like kitchens and bathrooms. The search for turnkey homes remains a top priority for many buyers, often due to limited time to manage contractors, renovations and required permits.
The recurring theme among buyers for home layout is the open floor plan. Connected everyday living spaces in the kitchen, family room and informal eating area top most buyer lists of must haves. This reflects a more casual approach to living and is in particularly high demand with younger families. Separate formal living rooms and dining rooms are still desirable, but buyers may be willing to accept smaller sized formal rooms in favor of larger, casual spaces.
A more casual floor plan does not mean that the sought after finishes and materials are inexpensive. Hardwood floors, high ceilings with crown molding, large windows and French doors are common requests in Greenwich buyer searches. Stone counter-tops, high end stainless appliances, designer lighting and high quality, white cabinetry rule among today’s buyers.
Other important components for layout include private master bedrooms with large closets and en suite baths. Buyers favor luxury details in these baths as much as price ranges permit, including marble, glass and mosaic tile, dual vanities, soaking tubs and glass enclosed showers. In fact, updated bathrooms throughout a home are high on buyer wish lists with an equal number of baths to the number of bedrooms seen as an ideal. Other spaces that have become increasingly important to buyers include home offices, dedicated laundry rooms, mudrooms with storage for sports equipment and secondary playrooms for children. Function and design are both among our buyers’ highest priorities.
Greenwich buyers still prefer traditionally styled exterior architecture. They favor Colonial, Shingle Style and Georgian homes over Contemporary. Contemporary home sales accounted for less than 10% of sales this year, due to tastes and lack of supply. The real differences in buyer choices are seen on interiors where transitional styles often win, bridging traditional and contemporary design. Clean lines and uncluttered design have replaced Grandma’s wallpaper, heavy drapery and dark wood trim for today’s buyers.
These buyer demands will continue to drive home values and sales. The market will move to reflect these trends as sought after locations, home design and styles continue to evolve.
Martha Drake, with over 17 years of real estate sales experience, works at Sotheby’s International Realty in Greenwich. She works enthusiastically with sellers and buyers throughout Greenwich, Cos Cob, Riverside and Old Greenwich. Contact her at martha.drake@sothebyshomes.com
