Spurred by the uncertainty of new tax policy, Westport single-family home sales surged during the final two months of the 2012. The fourth quarter gained 43 percent, effectively pushing sales into the plus column for the year. Unit sales posted an annual gain of 4.9 percent. Prices also reflected a modest gain, 2012 vs. 2011. Average selling price was $1,401,041, up 4.6 percent, although only half the homes sold above $1,210,000.
Larger homes dominated the market. Homes with 5 or more bedrooms accounted for 40.7 percent of sales. As might be expected, the highest price points were predominantly new construction homes. Overall, 19.4 percent of single-family homes sold for $2 million or more. Of these, 81.4 percent were new construction homes, with an average selling price of $2,357,323.
The flurry of year-end sales was unaccompanied by a match in new listings, resulting in very low inventory at the end of December. Eighteen homes came on the market during the first two weeks of January, bringing current inventory to 193 actively listed, single-family homes. Based on the past year’s sales, this translates to 6.4 months of supply. Traditionally, this would be considered a balanced market, leaning towards a seller’s market. Drilling down further indicates that 68 percent of the active inventory has been listed for three or more months, making an even stronger case that the market is slanted towards the seller.
Putting even more pressure on supply is an existing disconnect between the distribution of active listings and buyers’ preference. While less than one in five homes sold for $2 million or more, in 2012, nearly 40% of the current inventory is at that price point. Only nine of last year’s sales were for $4 million or more, yet there are nineteen homes currently listed in that range.
On a positive note, the momentum exhibited at the end of the 2012 appears to be carrying over into 2013. Though only ten homes have closed, as of January 14th, thirty-six transactions are pending and another seventeen homes have agreed-to offers. There were 61 single-family homes sold during the first quarter of 2012 and Westport appears to be on track to match or exceed that total in 2013. Considering the current tight supply, homeowners, thinking about selling, would be well advised to put their homes on the market sooner, rather than later, when their listing might be lost in the seasonal jump in spring market inventory.
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