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New Canaan Real Estate | How Affordable is New Canaan's Housing?

A 'numbers' look at New Canaan's real estate market ... week of March 12 through March 18 ... including those properties new to market as well as the status of our current inventory.

New Canaan Real Estate Market Activity | March 12 - 18

Photos of new market offerings listed during the past week are shown above, and the statistics for market activity are outlined in the weekly charts below.

NEW SINGLE FAMILY RESIDENTIAL LISTINGS 

# of Properties  16 Listing Property Volume $24,388,500
Listing Property Median $  1,343,500

ACTIVE SINGLE FAMILY RESIDENTIAL LISTINGS

# of Properties 216 Listing Property Volume $519,387,900 Listing Property Median $    1,995,000 Average Days on Market 179

SINGLE FAMILY RESIDENTIAL LISTINGS UNDER CONTRACT

# of Properties 8 Pending Property Volume $   12,418,000
Pending Property Median $     1,840,000 Average Days on Market 184

SINGLE FAMILY RESIDENTIAL LISTINGS CLOSED

# of Properties 1 Closed Property Volume $      2,895,000 Closed Property Median $      2,895,000 Average Days on Market 281

1 Single-Family Residential Property Transfer • Week of March 12

List $2,895,000 / Sold $2,500,000 . 385 South Avenue . WA LLC to Mehta

Source . NC FLEX MLS

 

Housing Affordability Index Hits Record High

Per the National Association of Realtors, housing affordability conditions have reached the highest level since record keeping began in 1970, according to the National Association of Realtors®.

NAR’s national Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power.

An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage payments. 

New Canaan's property market certainly fits into the above stated formula - the median income for 2011 was $231,957 or $57,989 as the 25% of yearly income devoted to mortgage payment - while the 2011 median sold price for single-family residential properties was $1,600,000 for which an 80% mortgage of $1,280,000 at 4.5% interest would be roughly $57,600 per year, interest only.

Given that New Canaan is one of the most expensive communities to reside in, the affordability index here in our lovely village seems to be right on target ... empirical data shows us that purchasing power sits nicely within the NAR guidelines !!! 

Source: NAR . RealTrends

 

Thank you for taking the time to read my column in Patch, new posts of 'brokerbeatNewCanaan on Patch' publish weekly on Friday mornings.

My very best, Regina

brokerbeatNewCanaan ... bringing real estate to life.

All information is deemed reliable but is not guaranteed and should be independently verified.

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