January Real Estate Wrap Up

While we are all weather-worn, the real estate market continued to move at the end of 2010 into early 2011. 2010 was an active year in Westport, compared to 2009 which limped along. The rules of the game definitely changed as it became a more competitive market for sellers, but surprisingly frustrating for some buyers, with lack of viable inventory in popular price ranges.

So, far in 2011 we have had 17 closings in Westport, compared with 14 in 2010. Coming off of a sluggish 2009 (with five closings), 14 closings in 2010 was very positive. So, we are off to a good start in 2011.  Here are some additional stats that compare January 2011 to January 2010:

• Days on Market 2011: 139…..Days on Market 2010: 139
• Average Listing Price 2011: $1,272,100…..Average Listing Price 2010: $2,020,493
• Average Sales Price 2011: $1,213,618…..Average Sales Price 2010: $1,826,250
• Median Listing Price 2011: $799,000…..Median Listing Price 2010: $1,299,500
• Median Sales Price 2011: $735,000…..Median Sales Price: 2010: $1,280,000

Since averages can be skewed, let’s look at the change between January 2011 and January 2010, on Median Listing Price and Median Sales Price. Since these numbers reflect the activity approximately 60 days prior to closing, the lower end of the market became a dominant part of mix near the end of 2010, resulting in closings in January 2011.

This may account for the significant drop from 2010 to 2011 in Median Listing Price and Median Sales Price. In January 2011, we are experiencing similar median pricing patterns to 2004 and 2005. In reviewing comprehensive statistics from the past 10 years, despite starting with a high averages in January 2010, the year finished out at 2004-2005 median pricing. We may be headed for another year of pricing that tracks the same way. We will monitor the statistics throughout 2011 and watch for patterns. We anticipate that there will be pressure on pricing for sellers and buyers will continue to be cautious.