A lack of supply caused the 2022 luxury housing market to sharply decline in Fairfield County compared to 2021, according to a new report.
The decline in sales, which were down by double digits, was fueled by a high demand for a low amount of available residences, according to a report released by the Houlihan Lawrence real estate brokerage on Thursday, Jan. 5.
"At first glance, the logical conclusion is a slowdown in the luxury market. However, the data suggest strong buyer demand in a sharply supply-constrained market," said Houlihan Lawrence Vice President Anthony Cutugno.
He added, "Homes are selling faster at closer to list price at a higher average price per square foot than last year. Persistent inventory shortage keeps demand high as the scarcity principle kicks in."
Additionally, sellers are likely to hold on to their properties because of rising interest rates and may be unwilling to give up a low-rate mortgage to buy a new home at a higher rate, Cutugno said.
The report included the following data on the 2022 luxury housing markets for numerous towns in Fairfield County:
- Greenwich: Sales of homes $3 million and up decreased by 30 percent, and median sales prices decreased by 9.4 percent. The highest fourth quarter sale was an $11,193,132 home.
- Darien: Sales of homes $2 million and higher decreased by 24.8%, and median sales prices decreased by 1 percent. The highest fourth quarter sale was a $7.1 million home.
- Rowayton: Sales of homes $2 million and higher decreased by 34.4 percent, and median sales prices increased by 16.1 percent.
- New Canaan: Sales of homes $2 million and higher decreased by 28.7 percent, and median sales prices increased by 1.1 percent. The highest fourth quarter sale was a $4,945,000 home.
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