Greenwich’s residential market remains popular despite the fact that the 2006 Coldwell Banker home price comparison index found it’s the eighth most expensive in the nation. This four-bedroom, three-bathroom home at 24 Crescent Road is currently being offered for sale at $1.35 million.
It is no surprise to Greenwich residents and Realtors that the town has, yet again, ranked among the most expensive in the country. But local real estate experts hope that cachet will help Greenwich’s market remain steady and healthy, even as real estate markets around the country are showing signs of flattening.
The 2006 Coldwell Banker home price comparison index found that Greenwich has the eighth most expensive housing market in the country, with an average sales price of $1.4 million. Last year the town was the 10th most expensive, according to the index, with an average sales price of $1.27 million. In both studies, the nine other cities and towns in the top 10 were all in California.
“People recognize [Greenwich] as value and are willing to pay for it,” said Nancy MacDonald, a senior vice president who oversees lower Fairfield and Westchester counties at Coldwell Banker Residential Brokerage.
“You can’t point to one specific thing,” she said when asked why people are willing to pay more to live in Greenwich. “The broad base of our community is definitely multifaceted.”
Low taxes are a factor, according to Eric Bjork, vice president and director of sales for Prudential Connecticut Realty. They are lower than in Westchester County, and the proximity to New York City, along with the pure cachet of living in Greenwich, makes it a place where people aspire to live.
“It’s undeniably an affluent community with a lot of cachet,” Bjork said.
Although it has the feeling of a town and refers to itself as such, Greenwich is actually a small city – with a population of more than 60,000 – and has the benefits of one.
“It’s a very broad and diverse population,” Bjork said.
For different people, different elements of Greenwich draw them there, MacDonald said. The schools are well respected and there are numerous places of worship. MacDonald said people tend to draw each other there: If a friend or a business moves to the area, it brings in more people. The overall quality of life is very high, she noted.
And although Greenwich might be known for its estates, she added, there is also a variety of housing there.
‘A Little More Steady’
The appeal of Greenwich has helped its real estate market weather past storms, MacDonald said. Historically, the town’s market tends to fluctuate less than the markets in other communities when the real estate sales slow.
Now, the town is tracking slightly better than the rest of Fairfield County. According to statistics from The Commercial Record’s parent company, The Warren Group, sales were down 21 percent as of the end of July, compared to the first seven months of last year. In Greenwich, they are down about 15 percent, according to Bjork.
“While 2006 will still be the third-best year in real estate history according to the National Association of Realtors, there has been a shift to a buyer’s market,” said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corp., in a prepared statement. “With a larger inventory to choose from, buyers are taking their time and exploring several different homes before choosing to make an offer. Sellers, on the other hand, are beginning to be more realistic in what the market will bear for their home. It is critical for these sellers to work with their sales associate to set a proper price.”
But prices in the town are up more than in the rest of the county, which saw an increase of about 6 percent in prices. In Greenwich, prices are up about 10 percent, so total sales volume for the year is up slightly.
It is Greenwich’s well-known luxury homes that are keeping the numbers so healthy.
“The high end has been driving the market,” Bjork said.
People who spend millions on a home aren’t as sensitive to interest rates, he added.
“Greenwich tends to stay a little more steady,” Bjork noted. “I think all these factors are making Greenwich more stable and a good place to invest.”
MacDonald agreed.
“People who do invest in Greenwich real estate find it a worthwhile investment,” she said.
The town offers long-term value, and lately it seems more people are interested in that perk. MacDonald said she has noticed an increase in buyer activity over the past few months.
“What I see in the market is that more buyers are coming to the table now,” she said.
While MacDonald noted that they are buying up inventory that has spent time on the market – and often for a lower price – she stressed that since Labor Day, she has observed more activity overall.
Coldwell Banker’s study also found that West Hartford is the most affordable community in Connecticut, with a 2006 average sales price of $393,000, about $1 million less than Greenwich’s.
