Your New Neighbor May Be from New York

 My new next-door neighbors are from New York.  They just moved in, and they are planning to telecommute from the shoreline. They have high-level jobs that can be done remotely, for the most part. They have little children, and no idea what schooling will be like in the near future.  They have bicycles, a boat, a pool, and a new second car.

My husband and I also have one adult child (accompanied by a boyfriend) sheltering with us.  They are also telecommuting from New York, with good jobs, now being performed remotely.  They aren't sure when their offices will reopen, nor whether they will soon--or ever--have to be physically present in those locations.  They have new exercise routines, new athleisure wear, new cooking accessories, and new disposable income from no rents, no bars and restaurants, and no travel.  They have started looking at houses online, and near us.  Many people we know have similar stories.

Our friends, many of whom are retired or working remotely, are planning ahead to spend time in another part of the country this winter, if they haven't already decamped to a vacation home.  They are renting for months at a time, and testing out possible retirement locations. Rather than use hotels, or try to travel, they are opting for staying put elsewhere, to have a change of venue safely.

You may have relatives, friends, and neighbors like this as well.  Over 10,000 New Yorkers changed their addresses to Connecticut in the second quarter of this year alone.  Anecdotally, we are seeing lots of real estate activity from out of state, and many NY license plates on the roads.  We all know that the pandemic is current, but it's somewhat of a surprise that more permanent choices are being made so quickly.  It's been great for our business, and it will be good for Greater New Haven as well. New Haven proper, although a city, is low in density compared to other places, and remains very attractive for those who want both proximity and outdoor space. After long years of population decline, it's nice to be trendy again!

What does this mean for the real estate market in our region?  Supply, which was already slim, is even tighter.  Prices, which were inching up, are moving more quickly in that direction.  Time on the market is declining.  All of this puts sellers in the driver's seat, and advocates for selling--or even renting for a season or a year--soon.  

Is the Shoreline Recovering?

For the past few years, we've had a glut of Shoreline properties in the higher price ranges.  Some towns had as much as a five-year supply.  Lately, there have been many sales reported over a  million dollars.  The latest big news, the sale of Rogers Island  in the Thimbles for $21.5 million dollars, has prompted us to wonder whether there is a broader recovery going on.

Hurricanes Irene and Sandy, coming back to back in 2011 and 2012, left many people with a fear of waterfront properties.  One hurricane is a wake-up call for preparation, but two caused many to rethink risk.  Even with global warming, we all know that, statistically, hurricanes will not occur every year.  We also know that many houses are better built and higher up than homes used to be.  And, of course, it's now been 6 years since Sandy hit, and the lure of the Sound is greater again, or so it appears.

The price adjustments that resulted from the cost, or lack of availability, of flood insurance have remained to this day, but the activity, and the interest, in direct waterfront seems higher this year than for the past few.  In addition to risk factors abating, there are also other causes.  Lots of people have made lots of money in the stock market, and are looking for other places to deploy it.  Aging boomers want homesteads where their families want to gather, and may also be splitting time between the Northeast and a warmer location, so a vacation home here makes good sense.  We are in the midst of a great generational wealth shift, so that adds to the likelihood of increased demand.

Perhaps the final factor is that prices have come down, and, especially compared to the Hamptons and other similar locations, the Connecticut shore properties seem like a bargain--and, often, they are.  Particularly for people in Fairfield County, we are closer than other choices, and flexible work schedules and venues make for easier access by road.

So, if you've been watching, and considering a move to the Shoreline, the time has come to act, before you are beaten to the punch by others.  Consider this fair warning!