Real Estate Inventory Is At Historic Low. What Can Buyers Do?

Many people want to move to Westport. Plenty of others who already live here want to downsize. Or buy a bigger home.

Very few can do any of that.

Inventory is at a record low. Only 14 sales were recorded in January — down 30% from the previous year.

Our friends at KMS Team at Compass offer several reasons.

Agent Laurie Morris notes that years ago, retirees in their late 50s and early 60s moved to Florida, where the cost of living was lower.

Today, people work longer — and have the means to stay in their homes. They may purchase a winter escape. But they want to keep the place where they raised their children, developed friendships and built a life.

Your kids are gone. But why leave a house you love?

Kim Harizman adds that family has re-emerged as a central component of life. Downsizing may not be an option when room for entertaining, and frequent visits from adult children (and grandchildren) is desired.

(Westport is centrally located, Karen Hagen says, to so many “kids” who move away to New York and Boston.)

Staying where memories were made — and so many amenities are offered — can be a strong draw.

What does all this mean to buyers?

KMS encourages them to act fast.

“We encourage all potential buyers and sellers to consider the value of time,” Karen Scott says.

“Waiting for the perfect home, the lowest interest rate or the highest price is a losing game.

“Life is short. Time marches on. You should love where you live!”

Morgage pre-approval can help buyers move fast.

Inventory will eventually rise, of course. It always does.

KMS says there are 5 consistent drivers of real estate transactions: “diapers, diplomas, diamonds, divorce and death.”

“As life happens, housing needs change,” Scott says.

“Marriage and graduations may necessitate a move out of the area. The loss or addition of family members may require a move to a smaller or bigger residence.

“For the most part, these life changes are unpredictable. But they happen, making housing inventory ebb and flow.”

While we wait for an increase, what can buyers do?

Buyers looking to purchase should consider homes that may need work.

“Don’t overlook gems that have amazing property and prime locations just because you don’t love the kitchen, wallpaper or bathrooms,” KMS Team says.

“With some strategic TLC and vision, you could end up with the home and lifestyle of your dreams.”

This 6-bedroom, 9 1/2-bathroom house on Boxwood Lane off Sturges Highway is listed for $4.375 million. Of the 47 single-family homes now on the market, 34 are $3 million or more.

As for renovation — whether of a potential home, or one you’re in now (and can’t leave, because there’s nowhere to go) — they suggest:

1. The first step in any renovation is to identify the essentials — what’s definitively required. Then make a second list of nice-to-haves.

2. Doing things all at once is more efficient (and generally less expensive) than doing different projects piecemeal. Create an overall plan, then decide how much you can tackle.

3. Do your research: Prices differ dramatically by market and chosen materials. High-end fixtures, tile, wood flooring, etc. can quickly add up. Maybe you don’t need the most expensive faucet?

4. Make a list of every item in your home that is being changed, including little details like cabinet hinges and dimmer switches. Then plug those items into a spreadsheet, and assign a guesstimate cost to each. That is your budget — not a random number pulled out of the sky…

5. Contractors typically charge 10-20% of the overall cost of the project. Architects bill 8-20% on top of the total project budget. Know what the pros charge, and at what level. And if you need to live somewhere else while renovating, add rent to your budget.

6. Get multiple bids, and hire the right team of people – with good references. Cheap can often end up being expensive.

7. Always try to evaluate the cost of the renovation versus a move, or rebuilding from scratch.

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There are many considerations when renovating a home.