As the heart of Connecticut’s Gold Coast, Greenwich is home to a lot of wealth. To be sure, the markets rule and there has been downward pressure on residential home pricing. Prices have dropped. In Greenwich terms, single family home prices have dropped to a mere $2.3 million on average. By any national, state or county standard, that’s a lot or money. The good news is the wealth effect in Greenwich means downward pricing pressure is more muted than it otherwise might be. That’s good for sellers and investors.
At the entry level purchasers see value in investing in the well-served community and compete in bidding wars in a seller’s market. In contrast, at the luxury end there are a lot of homes for sale, in what would be otherwise a buyer’s market with crashing home prices. But not here, not now.
Abundance of Wealth Softens Downward Pricing Pressure
Wealthy owners may choose to sell, but they may not need to sell quickly. Many homeowners have earned great wealth while living in Greenwich, and severing those ties may not be easy or desirable. Wealth enables those sellers to hold on to and carry home investments through down markets or price discovery. With few fire sales, homes retain more value and excess supply exerts less downward pressure on pricing. It also means the quality of the home matters more.
A homeowners ability to carry a house does not compensate for a house with a functionally obsolete floorplan, poor maintenance or an undesirable location. Homeowners still need to take a hard look at current value with their agent and make any appropriate adjustments.
If you are enjoying my weekly reports, please consider contacting me several months prior to listing your property for sale or recommend me to your friends considering a move!