With more people working remotely in 2021, the dynamics of the Greenwich real estate market changed drastically. High demand for luxury homes in the suburbs was at a consistent all-time high throughout the year, but low inventory caused major shifts in home values. Here are a few trends of the 2021 real estate market.
Remote Work and Increased Prices
With more people working remotely now than ever before, the Greenwich real estate market boomed in 2021. In 2021, more people moved to the suburbs permanently when their jobs went remote. This led to an increased demand throughout Greenwich for the entire year, with average sales prices skyrocketing to $3 million, up 12.6% from 2020, the highest it’s been in ten years.
While the pandemic continued to surge throughout the year, the remote work landscape shifted and as did people’s priorities. Homes in Greenwich became even more desirable and coveted — demand was consistent, as was the low-inventory, and prices remained at an all-time high.
Consistent High-Demand & Low Mortgage Rates
Homes were in high demand in Greenwich throughout 2021 with sales volume of $3.02 billion, up 31% from 2020. 1,007 single-family homes were sold in 2021, up 17% from 2020. Demand continued unabated through most of the year. The last quarter of the year saw a dramatic drop in inventory (60% lower than the 5-year average). 25% of all sales were at or above the asking price and average days on the market dropped 36% from 170 days to 109 days.
Homes in Greenwich are expected to continue to be in high demand well into 2022. However, with continued supply chain issues moving into 2022, newer homes in the area should continue to sell for higher prices, as they did throughout 2021.
The first quarter of the year maintained similar low-interest rates (under 3%) from 2020, but by the end of 2021, interest rates for a 30-year fixed mortgage climbed to 3.67% in December 2021. With low rates throughout the year, homeownership grew more appealing to first-time homebuyers and millennials, making up 37% of the buyer’s market in 2021.
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