Like many real estate markets, Greenwich has been a whirlwind over the past few years. From 2020 to 2022, the local market has been incredibly dynamic, with prospective buyers competing in bidding wars and paying thousands of dollars above the asking price to secure their dream home. As such, there are a few questions arising. Have these market conditions carried over into 2023, and how will the Greenwich real estate market look moving forward? What can buyers and sellers expect for 2023? Will Greenwich continue to be a seller's market, or will demand slow down?
Whether you are a homeowner or an investor, you likely have many questions regarding what is going on with the local market and what will happen in 2023 and beyond. As a buyer, you will likely want to know the right time to invest. Not only do you want to find the right home for you, but you also want to find it at the right price. Understanding the local market is also vital if you are a seller since you will want to know whether your property values will keep increasing.
You also want to know the right time to sell your house. No matter your circumstances, paying attention to local market conditions is crucial. Fortunately, there are ways you can predict what's coming next based on expert opinions and local real estate trends. Here's what you can expect in the Greenwich real estate market for 2023.
The Greenwich market highlights of 2022
To understand what is happening in Greenwich's 2023 real estate market, let's first look at what the 2022 market was like. During 2021 and 2022, interest rates were at an all-time low, dipping to 2.65% in January 2021. Interest rates stayed low through 2021 and the first three quarters of 2022. As a result, homebuyers had even greater buying power than ever before.
This was also when more millennial buyers were entering the housing market, outpacing older generations for the first time in 2022 as the largest homebuying group of any generation. Combined with all of these factors, the demand for quality housing had never been higher, resulting in one of Greenwich's most competitive real estate markets.
To try and stabilize the housing market, the Federal Reserve knew they needed to act quickly. This resulted in an increase in interest rates in October 2022, which rose to over 6%. "We went from all-time low mortgage rates to a 20-year high in nine months," said Robert Reffkin, CEO and Founder of Compass. This change, of course, would significantly impact the 2023 housing market.
This was also when more millennial buyers were entering the housing market, outpacing older generations for the first time in 2022 as the largest homebuying group of any generation. Combined with all of these factors, the demand for quality housing had never been higher, resulting in one of Greenwich's most competitive real estate markets.
To try and stabilize the housing market, the Federal Reserve knew they needed to act quickly. This resulted in an increase in interest rates in October 2022, which rose to over 6%. "We went from all-time low mortgage rates to a 20-year high in nine months," said Robert Reffkin, CEO and Founder of Compass. This change, of course, would significantly impact the 2023 housing market.
Real estate market trends of 2023
In an effort to stabilize the real estate market, interest rates increased to over 6% for the first time since 2008. This left many prospective homeowners wondering whether there would be a housing crash like there was in 2008. In short, it hasn't. In fact, even though interest rates are at their highest in over 20 years, “the frenzy is over, but we still see multiple offers, more foot traffic, and more buyers and sellers,” said Reffkin.
The demand for housing is still at an all-time high, which has resulted in increased property values throughout the Greenwich area. While many people expected the market to drop during 2023, thanks to increased interest rates, the market doesn't show signs of slowing down.
The demand for housing is still at an all-time high, which has resulted in increased property values throughout the Greenwich area. While many people expected the market to drop during 2023, thanks to increased interest rates, the market doesn't show signs of slowing down.
Greenwich median sales price
Beyond interest rates, many other signals can indicate what is happening in the local real estate market. Buyers are more likely to invest in real estate when interest rates are low, but that's certainly not the only thing that drives the local real estate market.
When the overall demand for real estate is higher than the available housing inventory, you are in a seller's market. What are some other signs you are in a seller's market rather than a buyer's market? Look at the median sales price, then compare that to the number of days on the market. If the median sales price is high and the days on the market are low, you are likely still in a seller's market.
As of April 2023, the median sales price in Greenwich is $1,600,000, which is significantly higher than the national average. Greenwich has been a desirable community for many years, thanks to its proximity to New York City and its abundance of luxury homes. Greenwich is also one of Connecticut's most highly coveted real estate markets.
Even with the high median sales price, the average days on the market is around 128 days, which is a fast turnaround time for that price range. According to Reffkin, the demand for homes is still high, which has resulted in home values continuing to increase.
When the overall demand for real estate is higher than the available housing inventory, you are in a seller's market. What are some other signs you are in a seller's market rather than a buyer's market? Look at the median sales price, then compare that to the number of days on the market. If the median sales price is high and the days on the market are low, you are likely still in a seller's market.
As of April 2023, the median sales price in Greenwich is $1,600,000, which is significantly higher than the national average. Greenwich has been a desirable community for many years, thanks to its proximity to New York City and its abundance of luxury homes. Greenwich is also one of Connecticut's most highly coveted real estate markets.
Even with the high median sales price, the average days on the market is around 128 days, which is a fast turnaround time for that price range. According to Reffkin, the demand for homes is still high, which has resulted in home values continuing to increase.
Should you invest in Greenwich real estate in 2023?
Considering these factors, you may wonder what this means to you as a buyer or seller. If you are considering buying in real estate as a prospective homeowner or investor, you are likely wondering whether or not 2023 is a good time to invest in Greenwich real estate.
While interest rates are higher in 2023 than in 2021 and 2022, 2023 is still a great time to invest in real estate since Greenwich home values will likely keep increasing. This is good news if you want to hold onto your property for a long time or even if you want to generate a profit from an investment property. As long as the demand for quality housing remains, property values in Greenwich will keep appreciating.
This is also excellent news for sellers since this means their homes will likely sell quickly and at a profit. Overall, there has never been a better time to buy or sell real estate in Greenwich, Connecticut.
While interest rates are higher in 2023 than in 2021 and 2022, 2023 is still a great time to invest in real estate since Greenwich home values will likely keep increasing. This is good news if you want to hold onto your property for a long time or even if you want to generate a profit from an investment property. As long as the demand for quality housing remains, property values in Greenwich will keep appreciating.
This is also excellent news for sellers since this means their homes will likely sell quickly and at a profit. Overall, there has never been a better time to buy or sell real estate in Greenwich, Connecticut.
Sell your Greenwich home today
Are you considering selling your home in Greenwich? Whether you are searching for new homes for sale in Greenwich or relocating somewhere else, you want to get your home quickly and for top dollar. That's where Mia Watabe comes in. Backed by her award-winning customer service and extensive knowledge of the local market, Mia is your trusted guide in Greenwich luxury real estate. Mia proudly serves clients throughout Greenwich, New York, and Boston. Contact Mia today for your free home valuation. She'll get your home sold!