First Quarter 2015 Shore Report

1 41 Ralsey Road South, Stamford, CT Sold Price:$1,575,000

The Shore Report

1st Quarter 2015

William Pitt Julia B Fee

2

Waterfront Sales Surge in Fairfield County Our housing markets in 2014 and 2015 have performed exceedingly well, as we have revealed in our quarterly Market Watch reports. We launched our quarterly Shore Report to explore how the waterfront segment in particular is performing, an especially relevant question in the wake of Hurricane Sandy as well as recent flood and homeowner insurances changes. This edition details our analysis of high-end shoreline sales in Fairfield County, CT, comprising direct waterfront single-family homes priced over $1 million.

In previous editions of this report, we found that the shorefront housing market made a strong comeback in 2014 versus 2013, particularly in the high end. That trend is clearly continuing as we enter 2015. In comparing waterfront home sales data in the first quarter of 2015 over the same period of the prior year, we found that both unit sales and dollar volume experienced significant increases.

Flood and Homeowner Insurance Updates Encourage Sales We believe that one of the major factors contributing to the surge in waterfront activity is the effect of recent changes in both flood and homeowner insurance, including the Homeowner Flood Insurance Affordability Act of 2014. Passed in March 2014, this update has made flood insurance easier to obtain for most buyers. A previous bill had removed subsidized insurance rates for waterfront homes constructed, depending on the town, prior to the late 1970s or early 1980s, during an era when flood maps had yet to be drawn and builders constructed homes without being able to draw upon the sea level elevation guidelines we have today. The new bill restores those earlier discounted rates, while also reinstating the ability for a seller to sign over an insurance policy with its current rate to a buyer. The bill has a positive impact on the vast majority of waterfront properties in the markets we serve, and for those properties that were constructed more recently, flood insurance is almost always very affordable as those homes were required to be built in compliance with today’s flood proofing elevation standards. In addition, a recent homeowner insurance update has ensured that homes no longer need to meet former mitigation requirements, from storm shutters and pre-drilled holes for shutters to impact-resistant glass, in order to qualify for insurance. The net result of all these changes is that it is far less difficult for owners to get insurance for homes on or near the coast.

Of course, flood insurance remains complex in waterfront areas, and each property may have idiosyncratic elements that should be evaluated by an expert. William Pitt Insurance recommends to all buyers: “When looking to purchase a coastal property, make sure you consult with a licensed insurance professional early on in the process.�

Browse all mls listings and learn more about the market at williampitt.com and juliabfee.com

The Shore Report

3

Fairfield County in Review The shorefront markets in Fairfield County that saw sales of Sound-front properties priced over $1 million, which include Darien, Fairfield, Greenwich, Norwalk, Stamford and Westport, experienced a tremendous 136.1% overall quarter-overquarter increase in sales volume and a 20% increase in units sold. Notable dollar volume growth was seen in Fairfield, which nearly doubled from the first quarter of 2014 to the first quarter of 2015; Westport, which more than doubled; and especially Greenwich, where volume increased by a dramatic 279.3%. In Darien, we saw a smaller 24.7% increase in volume while unit sales doubled. Stamford was close to even with last year, while Norwalk saw a minimal increase.

1st Quarter 2014

1st Quarter 2015

% Change

Units

$ Volume

Average Price

Units

$ Volume

Average Price

Change/ Units

Change/ $ Volume

Units

$ Volume

Darien

2

$13,950,000

$6,975,000

4

$17,392,500

$4,348,125

2

$3,442,500

100.0%

24.7%

Fairfield

3

$7,000,000

$2,333,333

1

$13,900,000

$13,900,000

-2

$6,900,000

-66.7%

98.6%

Greenwich

3

$15,145,000

$5,048,333

4

$57,450,000

$14,362,500

1

$42,305,000

33.3%

279.3%

Norwalk

0

$0

$0

1

$2,425,000

$2,425,000

1

$2,425,000

Stamford

2

$2,385,000

$1,192,500

2

$2,725,000

$1,362,500

0

$340,000

0.0%

14.3%

Westport

5

$13,700,000

$2,740,000

6

$29,286,000

$4,881,000

1

$15,586,000

20.0%

113.8%

15

$52,180,000

$3,478,667

18

$123,178,500

$6,843,250

3

$70,998,500

20.0%

136.1%

Town Fairfield County

Total

Information Sources: CMLS, Greenwich MLS and public town hall records for non-MLS sales. While information is believed true, no guarantee is made for accuracy.

1100 Cove South Road, Mamaroneck, NY Web ID: 4438318

The Shore Report

Browse all mls listings and learn more about the market at williampitt.com and juliabfee.com