This is the second of seven posts on the state of the Greenwich real estate market near the end of 2014. To read the entire report click this link: The Greenwich Real Estate Report YTD – Nov. 2014
GREENWICH PRICE APPRECIATION IN 2014
So far this year our median sales price has been $1,881,350 this compares to a median price of $1,640,000 last year. This 15% increase in median price looks very good, particularly at a time when inflation is in the low single digits, but it is a little deceptive. Most of this price increase in the median is due to an increase in sales in the higher price range.
An equally mathematically accurate but even more deceptive year over year comparison is the 34% increase in the 2014 average price to $2,736,683 for a single family home in Greenwich. This average price jump includes the $120 million sale of 120 acres on Long Island Sound.
A better way to estimate the average price increase in Greenwich houses is to compare the change in the ratio of the sales price to the town’s assessed value. This ratio is up 7.1% so far in 2014, but any way you calculate it Greenwich houses are beating inflation.