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Greenwich, CT Real Estate Market Outlook for 2023

04/3/23

Demand in this city will keep prices high.


With the fluctuating market conditions that 2022 has exhibited, buyers and sellers might not know what to expect of Greenwich, CT real estate going into the new year. Demand is projected to remain strong due to job growth in the state, while slowly replenishing inventory will keep prices high. Buyers and sellers can expect an equal mix of advantages and disadvantages when starting their home transactions. To better understand the market forecast for Greenwich in 2023, here’s what you need to know about current market conditions.

Greenwich statistics


For a quick view of what market trends look like today, review the figures below. Then, read on for a more detailed explanation of what this means for you as a buyer or seller in Greenwich.
 
 
  • The median sale price for single-family homes is $2.04 million
  • The median sale price for a condo/co-op is $699 thousand, down from last year
  • Residential homes spend an average of 35 days on the market, down from last year’s 134
  • Monthly inventory is 5.8% less than it was compared to last year, at four months
  • Residential closed sales have decreased by 31.8%

Greenwich housing market


Greenwich’s housing market is currently a cooling seller’s market, which can be difficult for buyers and sellers to navigate without the help of a Greenwich realtor. With higher inventory levels and the number of closed sales decreasing, buyers today are feeling the positive effects of more options on the market and less competition. Decreasing prices for certain property types like condos and co-ops also benefits buyers today, as they have more opportunity to negotiate the price of an offer.

Sellers listing in Greenwich are likely feeling the result of fewer home sales on the timing of their property’s sale, as less demand increases seller competition. However, sellers still have plenty to benefit from conditions today. Increasing median sales prices for single-family homes, an overall decrease in monthly inventory, and a decrease in days on market mean that sellers don’t have to wait long for a good offer on their Greenwich property.

Greenwich’s 2023 forecast


People selling or searching for homes for sale in Greenwich, CT can expect continued cooling trends going into 2023. Although inventory is low and currently decreasing, the increase in new home construction next year will help boost inventory levels. Fairfield County, in particular, is experiencing and will continue experiencing high housing demand, as it’s the most populous county in Connecticut. More balanced inventory levels will help market conditions neutralize in 2023.

Additionally, the economy and job growth across the state will continue to keep demand high in areas like Greenwich. In particular, the construction, professional and business, and trade, transportation, and utility sectors have created jobs that surpass levels pre-2021. With this, buyers searching for properties will likely still face some competition, even with increasing inventory rates. New construction may also be limited by labor shortages and supply-chain issues that were exacerbated by global events.

Buyers in 2023


Buyers looking for Greenwich properties in the next year should expect a mix of pros and cons in their search. As inventory continues replenishing and sales decline, there will be more options available, with the extra time to consider multiple listings before making an offer. With cooling market trends, buyers can expect bidding wars to stay in the past while being bolder in negotiations with sellers. Although there will still be competition, and prices will remain high, conditions won’t be as frenzied as they once were.

There are a few things to keep in mind entering the new year. Increasing interest rates have a serious impact on buyer power in the area, which is largely responsible for decreasing sales. The average Connecticut rate for a 30-year fixed mortgage is 6.74%, while 15-year fixed-rate mortgages are 6.09%. Buyers may find this, alongside other expenses, difficult to manage, as the cost of living in Greenwich is 67% higher than the national average. Price discrepancies are especially evident in housing costs, which are 174% higher than in the rest of the country.

Sellers in 2023


Sellers in 2023 can also expect a mixed bag entering 2023. On the positive side, demand will continue throughout the new year due to economic growth and low supply. Sellers can count on Greenwich’s allure to attract buyers as well, as its natural amenities, like beaches and parks, make it a desirable place to live. The push of demand and low inventory will keep prices high, which sellers will benefit from entering the new year.

Decreasing home sales will continue to negatively impact sellers in the area, which is why they should partner with expert agents like those at The SK Homes Team to market and price their properties correctly. Higher mortgage rates not only decrease buyer power but may prove an obstacle for sellers who are searching for a property after they close on their home’s sale.

Investors in 2023


Investors interested in Greenwich should keep an eye on highly appreciating neighborhoods like Riverside and Eastern Greenwich when planning their purchases. 52% of the households in the area are renter occupied, and with increasing mortgage rates and median prices, investors may see more demand from buyers who decide renting is a better alternative. The median rent in the area is $2,945, a 23% increase compared to last year. Although it may be difficult to find a property, it can be well worth the search in 2023.

Ready to search Greenwich?


Greenwich will likely remain in sellers’ favor entering 2023 as home prices continue to increase and demand remains strong. However, buyers can count on increasing inventory and decreasing sales to cushion competition. Among rising mortgage rates and inflation, investors who find a rental property are in a good position to profit in highly appreciating areas. When you’re ready to plan for 2023, contact one of the expert agents on the SK Homes Team to guide you through the process.