If it seems like there are almost no homes for sale in Westport under $2 million — that’s true.
And if it seems — counter-intuitively — that the one or two houses in that price are not selling — that’s true too.
Our friends at KMS Team at Compass send along some statistics. And insights.
As of April 1, there was one single family home for sale in the $1 million to $1.9 million price range; one between $1.2 million and $1.39 million, and only 4 others under $2 million.
Meanwhile, there were 8 homes in the $2 million to $2.99 million category, and a whopping 41 priced $3 million or more.
This 5-bedroom home on Ridgewood Lane, off Kings Highway North, is priced at $2,955,000 — right in the current market’s “sweet spot.”
Interestingly, all 3 recent sales in the $1-$1.2 million range sat on the market for more than 50 days — despite a wealth of buyers seeking homes at those prices. Two even needed a price drop to sell.
Those homes’ closing prices were 86% of the original list price.
At the same time, homes in the $2-$3 million range spent an average of only 17 days on the market. And they sold at 6.6% over list price.
“When the listing price is perceived too high by the market, homes linger,” KMS Team says.
The ones sitting on the market at the lowest price range have not been “move-in ready.” They need plenty of work, or have location challenges like not being at proper elevation in a flood zone.
Pricing a home is an art. Homes over-priced at the start, KMS says, often miss their target buyer group.
If a homeowner cannot spend over $1 million, for example, they and their agents focus on a lower range — maybe $800,000 to $900,000 — knowing that in this market it often takes more than list price to secure the home.
This 4-bedroom home on Oak Street, off Clinton Avenue, sold last month for $860,000.
Those who do view a home in its overpriced state tend to pass, rather than put in a below-ask offer. While sometimes warranted, people are hesitant to offer anything substantially below the asking price.
Then, when a home is reduced into its correct range, buyers may be hesitant to consider it because of the number of days it’s spent on market.
In the end, KMS says, “a buyer will determine the price of a home based on what they are willing to pay, and a seller is willing to accept.”
But why aren’t those lower-priced homes being sold as teardowns, to hungry developers?
KMS explains, “Builders look at building lots/teardowns not only for the purchase price, but also what price range, in a new construction home, that property could command.
“Construction costs are expensive. They need to be considered now, and possibly several years in the future.”
This 5-bedroom, 8-bathroom house on Hillspoint Road, between Old Mill and Compo Beach, is listed for $11,800,000.
Which leads to … the future.
In these days of economic uncertainty and volatility, what’s ahead for Westport real estate?
“While our economy is fragile, we still believe that real estate is a sound investment and a comfort,” KMS says.
“Purchasing a home fixes a substantial portion of your housing expenses, and takes away the stress of rental increases and frequent moves. Communities with impressive amenities such as ours will continue to be sought-after locales.”
A few real estate statistics, from January 1 through March 31:
- Single family home sales: 43
- Average single family home sale: $2,697,624
- Condo/townhouse sales: 15
- Average condo/townhouse sale: $1,422,200.
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