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!

Who Would Have Thought It?

If someone had told us twenty years ago that the center city's residential properties would be holding value better than those in the suburbs--better even than direct waterfront--we probably would have scoffed. It's clear right now that the hot market is New Haven--the closer to downtown, the better.

This isn't by accident. President Levin of Yale, who has been in office for fifteen years, lived in New Haven for many years before he became Yale's leader (and, in fact, has continued to live in his own home, rather than the one that Yale provides). He has made it clear that he would be happy if every new hire lived there as well. The last time that I heard, 47% of Yale's senior faculty lived within the city limits. In today's New Haven Advocate, the stated equivalents of New Haven's municipal police and firefighters were 13% and 17%. Yale's showing clearly represents the payoff of a long-term strategy.

There is another factor at work, however. Current demographics favor the central city, although this is a change from earlier generations. Young professionals have always preferred urban life, but now, increasingly, so do empty nesters. The arts, the dining, the conveniences, and the lack of commuting time have all contributed to make New Haven a popular housing choice. Even those with school-age children, if those children attend one of the city's prestigious private schools, have been moving into the city neighborhoods.

And that's all good news for the region, since a vibrant city makes for healthier suburbs.