Newtown and Sandy Hook remain popular towns with house hunters, despite economic downturns, the tragedy of 12/14, and taxes that make selling a tour de force for local realtors.

With listings of single-family homes for sale in Newtown and Sandy Hook numbered at 284 as of September 14, the inventory is high, admitted Newtown Board of Realtors President Cyndy DaSilva. However, it is not substantially out of line with previous years’ inventories. In April of 2013, according to information provided to The Newtown Bee by the local board then, Newtown’s inventory was 253, down from a high the previous year of as much as 319 homes on the market. Two years prior, in 2010, Newtown’s inventory of single-family homes for sale hovered at just over 200.

Ms DaSilva sees comparable inventories in surrounding towns, when population is taken in to consideration.

What Ms DaSilva finds interesting, and of some slight concern, is that while towns such as Monroe and Ridgefield have shown increases in average selling prices for single family homes in the first six months of each year since 2012, Newtown has seen a dip. In 2012, the average selling price of a home in Newtown stood at $427,064; in 2013, that number was $404,282; and in the first six months of 2014, the average selling price was down to $382,739.

While she does not have the statistics, Ms DaSilva said that a “good amount” of houses listed in Newtown, in every price range, are short sales, meaning they will sell for less than the original mortgage amount. “We never heard of short sales before 2008,” she said, “but now when we put in a listing with MLS (Multiple Listing Service), we have to show if it is a short sale,” she said. On the other hand, few of the homes for sale are actually in foreclosure, Ms DaSilva said.

It is the lower end of the market currently selling most briskly, said Ms DaSilva. Homes priced in the $200,000s or $300,000s account for 21 percent and 24 percent, respectively, of sales. Another 15 percent of sales is attributed to homes in the $400,000 range. It may be that people are feeling cautious after the sub-prime disaster of the early part of the new century, and want to stay in a very comfortable range. Young couples are finding starter homes in the lower price range more affordable as they start out in Newtown, as well. People who are downsizing, but want to stay in Newtown as personal circumstances change, also contribute to the sales of less expensive homes, Ms DaSilva pointed out.

Challenging But Not Impossible

Selling a home in Newtown is challenging but far from impossible, despite the increased inventory. A single family home in Newtown, with an average listing price of $527,781 currently, can expect to be on the market just over four months. Sellers are cautioned, though, that they should be prepared to drop the initial asking price before the property sells. Realtors will list at the higher end of a realistic price for a home, “But if it is not moving in three or four weeks, we will suggest a reduction in price,” Ms DaSilva said, of about $10,000, to start. That drop may bring a home into the next lower margin of price, she pointed out, where buyers researching online may notice a home that previously was listed just outside of the upper limit they had set.

Sellers must realize that today’s savvy buyer knows what is selling and at what price.

“We’re still adjusting here to what prices really are. There are still people hanging on to the idea of the high value of their homes, but the market has gone down since 2006,” she said. “You have to price a house considering the market conditions and anything specific to your home that could be negatives, things you can’t change,” Ms DaSilva said. Those negatives might be a very steep driveway or encroaching wetlands, for example, but smart marketing can overcome those shortfalls.

People love amenities. Upgraded bathrooms, vessel sinks, and a fun patio or fire pit to increase outdoor ambience can lesson the impact of any negatives, she said. As always, a decluttered home, inside and out, can be the difference between selling quickly or not, Ms DaSilva said. Simple décor in a traditional/contemporary style shows best in Newtown, and a tailored landscape is a draw for buyers. “Clean the gutters, power wash or paint the exterior and make sure the trim is in good shape,” she recommended to sellers.

A Sense Of Community

The events of 12/14 were an additional challenge to the Newtown housing market, but remarkably, Ms DaSilva said, the positive media and the town’s proactive response to the tragedy meant that only a very few potential buyers opted to move to other markets.

What has always sold Newtown and what continues to do so, is the sense of community found here, she said. The numerous clubs and organizations, the highly regarded school system, and townwide events like the holiday festival and tree lightings, and the Labor Day Parade show Newtown as a cohesive community that is attractive to buyers. There is an “ahh” factor when potential buyers see Newtown in comparison to surrounding communities, Ms DaSilva said.

That sense of connectivity to the town is particularly important when buyers look at what many realtors consider Newtown’s biggest detriment — high taxes. For instance, Ms DaSilva provided statistics showing that a home sold in Newtown for $399,382 can expect to pay $8-10,000 in taxes each year. In Brookfield, a home selling for $446,583 will pay that same amount of taxes. A Newtown homeowner who buys a house for $472,189 will pay $10-12,000 in taxes; a Brookfield homeowner paying those taxes will have purchased $652,800 worth of house.

“We have room here,” Ms DaSilva said, for more corporations and businesses that could help alleviate the high taxes paid by residential homeowners. High taxes are something that local realtors are anxious for town officials to address, she said, before those taxes take a toll on the many positives newcomers see, when considering a move to Newtown.

“Realtors here are extremely invested in Newtown and we try to convey to buyers that it is worth the extra taxes to live here,” she said.

The Up Side

On the up side, mortgages continue to be affordable, ranging from around 4.25 percent to 4.50 percent for a conforming, 30-year fixed mortgage, said Ms DaSilva. There has been little difficulty, even with increased restrictions in response to the sub-prime fallout, with consumers qualifying for mortgages. “Banks are really working with people,” she said, and it is possible to get a mortgage with just 3.5 percent to 5 percent down. “Anyone with a credit rating at around 700 is considered a good risk and shouldn’t have issues [getting a mortgage],” Ms DaSilva said, nor has the wait time budged much from an average of four to five weeks from time of application. “People are getting mortgages [for homes in the area] every day,” she said.

The activity level is now increasing, “and with that will naturally come the increase in prices,” she said.

Selling is never an exact science, Ms DaSilva said. Newtown is taking time to make its comeback, but that may not be a bad thing. “It can mean,” Ms DaSilva said, “a stronger recovery.”