Sales of Connecticut homes in excess of $5 million during the second quarter of this year increased by 50 percent compared to a year ago, according to a new analysis released by Berkshire Hathaway HomeServices New England Properties.
Two-dozen homes in that price range sold between April and June of this year, including 16 in Greenwich alone, said Candace Adams, president and chief executive officer at Wallingford-based Berkshire Hathaway HomeServices New England Properties. Adams said a combination of factors, including proximity to New York City and lower inventories of homes priced in excess of $5 million, led to the surge in activity.
“It’s a tremendous sign of health in the market,” she said.
The further away a luxury property is from New York City, the more likely there is to be a larger inventory of homes in that price range, according to Adams.
The Berkshire Hathaway HomeServices New England Properties analysis found that while there was plenty of sales activity for homes above $5 million during the second quarter, sales of homes in excess of $2 million or more were essentially flat, she said. Adams said that is due to an excess of homes in that price range that could take more than a year-and-a-half to reduce the oversupply.
“Houses in the $2 million price range tend to cover a broader area of the state than those in the $5 million price range,” she said.
Barbara L. Pearce, president and chief executive officer of the North Haven-based real estate firm Pearce Co., said the oversupply of luxury-priced homes in Fairfield County has a negative impact on similarly priced homes in the New Haven area.
“It’s hard to predict which homes are priced well and will go quickly and which will linger on the market,” Pearce said. “There’s a lot of demand for luxury homes in East Rock (section of New Haven) but the price is pretty much capped at $850,000. The price range for homes…