Condo Sales Surge on Connecticut’s Gold Coast

Last week we reported that co-op and condo sales may be lagging in New York City but they’re booming in suburban Westchester County. Now the Gold Coast of Connecticut is joining the party.

The Real Deal reports that in the fourth quarter of 2018, condo sales in tony Greenwich, Connecticut surged 23 percent from a year earlier, according to Douglas Elliman’s latest market report. At the same time, the median sales price dipped 3.1 percent to $746,250. Single-family sales slid 2.2 percent, with the median sales price falling 16.7 percent.

“The shift in price indicators is partly due to the new tax law, which affects the higher end more,” said Scott Elwell, Elliman’s senior executive manager of Westchester and New England. “I’m still optimistic on Greenwich, as we’re seeing more interest from Westchester because of taxes.” Westchester's property taxes are the highest in the nation.

The condo sales uptick stems, in part, from buyers less interested in renovations and more eager to buy homes that are move-in ready, Elwell added. The “lifestyle aspect” of new construction condos has helped the sector.

In New York’s Westchester County, meanwhile, sales of co-ops and condos are also robust, as buyers shun single-family homes. Sky-high property levies – and Trump-induced federal tax law changes that reduced homeowners’ ability to write them off – have been scaring buyers away from large homes. Suburban buyers now are seeking city-style living at attractive price points, with less upkeep and lower property-tax burdens, says Elliman’s Elwell.

Steven James, CEO of Elliman’s New York City division, believes sales declines are likely to continue. “By the second quarter," he says, "when people start paying their taxes and really see what the outcome of the change in the tax law is, I think you’ll continue seeing a decline in sales.”