Buying a Home in NYC’s Connecticut Suburbs? Expect to Pay Up

Competition for homes in New York’s Connecticut suburbs is so fierce that more buyers than ever are agreeing to overpay.

In the second quarter, the share of single-family houses that sold above the asking price set records in Greenwich and all of Fairfield County, as bidding wars erupted for a dwindling supply of listings.

In Greenwich, the wealthy town favored by many Wall Street executives, 28% of purchases were for more than the seller sought, according to a report Thursday by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. That was the largest share in data going back to 2017.

Buying a Home in NYC’s Connecticut Suburbs? Expect to Pay Up

In Fairfield County -- including Greenwich and towns such as Darien and Westport -- 54% of home sales were above the asking price, the firms said. That was also a record, and far surpassed the previous high of 37%, set just in the first quarter of this year.

The bidding wars are a consequence of the area’s plummeting supply of houses on the market. At the end of the quarter, the listing inventory in Fairfield County was down 40% from a year earlier to 1,681. In Greenwich, listings dropped 42% to 341.

The aggressive purchase stance isn’t limited to Connecticut.

Just over the border, in New York’s Westchester County, 38% of home sales in the second quarter were above the asking price -- a record in data going back to 2017, Miller Samuel and Douglas Elliman said. And Long Island’s share of deals with bidding wars reached an all-time high of just under 40% in the first quarter, the latest data available.

“It’s a regional condition,” said Jonathan Miller, president of Miller Samuel. “Low rates, an improving economy, and an insatiable demand despite lack of supply is driving buyers to significantly overpay.”

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.