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In December, I moved my family to a home in New Canaan. I don't want to divulge too much here, but I would say we got a great deal. I purchased our property for just under $2 million. The house is somewhere around 9,000 sqft depending on whether the basement is counted, and it sits on several acres. Part of the lower-than-usual price is the fact that it's a bit north of town, although it will typically take us no more than 10 minutes to get downtown.
I'm not saying this all to boast. In fact, just the opposite. I moved here with the idea that I'd socialize with existing friends of mine from the city who moved during the pandemic. Two or so days ago, I spoke to some of them, and most are already packing up and hightailing it back to the city in anticipation of a revitalized New York. One told me that if I don't sell the house soon, I'll "take a bath" (in other words, get financially obliterated).
So, here I am, the owner of a jugunda home that could easily house two families (I'm constantly having family over, and my mother-in-law has been temporarily living with us) - but in a hot market that, at least anecdotally, gives every impression of being transitory.
I see the market adjusting rather soon, but not as dramatically as it did in '08. Still, with a potential exodus I don't know that I should hold on to such a massive home... the house had appreciated by something like $500,000, but that figure is now somewhere closer to $300,000. These gains could be gone in just months, or possibly even weeks.
So, what should I do? I've been considering renting it out for a hefty monthly sum but with a short lease as I suspect that with the city coming back the rental market here is going to fall off a cliff. A second option would be to keep it, and a third to sell it rapidly and move to a more manageable home closer to town.
I want to note that I didn't move here because of COVID. I moved here because I am enchanted by my town and neighboring ones. Be that as it may, I would prefer not to get eaten alive if the market plummets, which I have been concerned about for months now (see previous post).
Thank you all for reading, and if you have any feedback, I'd love to read it.
You should like and want your home regardless of who is the area lives by. Buying a large home you want to sell because a specific set of friends is leaving may not have been the wisest long term plan. Personally, I would never keep a massive house as a rental property because most people don’t want to rent such a large home as the costs would be too high for most people. If you like your house and plan on being there for 10+ years, who cares if there is a drop in the market this or next year. You can’t plan a market 10+ years out so you just need to enjoy your home. If you didn’t want to keep the house though I would sell sooner rather than later to minimize potential losses as the market is still hot now and likely will quiet down this or next year and buy a house that you truly want to live in longer term. FWIW I live off South and ADORE living walkable to town.
Last edited by Vetgirl2014; 05-04-2021 at 11:36 AM..
You should like and want your home regardless of who is the area lives by. Buying a large home to entertain a specific set of friends may not have been the wisest long term plan. Personally, I would never keep a massive house as a rental property because most people don’t want to rent such a large home as the costs would be too high for most people. If you like your house and plan on being there for 10+ years, who cares if there is a drop in the market this or next year. You can’t plan a market 10+ years out so you just need to enjoy your home. If you didn’t want to keep the house though I would sell sooner rather than later to minimize potential losses as the market is still hot now and likely will quiet down this or next year and buy a house that you truly want to live in longer term. FWIW I live off South and ADORE living walkable to town.
Thanks for replying. I bought the home because I loved New Canaan and for its low cost compared to price comps. I'm also not thinking myopically - I just couldn't afford to lose hundreds of thousands of dollars in the months and years to come as I have many other expenses and expected to sell after my kids graduated. I definitely want to stay in NC, but I may want to downsize to a 4-5k sqft home with similar (or better) town access. As much as I love my current home, I don't think the market will soon. The backcountry estates aren't in anymore. Again, thanks for the input!
Most of my friends who fled the city purchased homes and are staying put. The new NY/NYC tax rates are keeping even the suburban renters from returning. I also work in alternatives and despite our stodgy reputation - have been explicitly told that we will not be working 5x a week from the corporate office. Density is going to take a long time to rebound. Big homes and lots have staying power. The pendulum swings.
In December, I moved my family to a home in New Canaan. I don't want to divulge too much here, but I would say we got a great deal. I purchased our property for just under $2 million. The house is somewhere around 9,000 sqft depending on whether the basement is counted, and it sits on several acres. Part of the lower-than-usual price is the fact that it's a bit north of town, although it will typically take us no more than 10 minutes to get downtown.
I'm not saying this all to boast. In fact, just the opposite. I moved here with the idea that I'd socialize with existing friends of mine from the city who moved during the pandemic. Two or so days ago, I spoke to some of them, and most are already packing up and hightailing it back to the city in anticipation of a revitalized New York. One told me that if I don't sell the house soon, I'll "take a bath" (in other words, get financially obliterated).
So, here I am, the owner of a jugunda home that could easily house two families (I'm constantly having family over, and my mother-in-law has been temporarily living with us) - but in a hot market that, at least anecdotally, gives every impression of being transitory.
I see the market adjusting rather soon, but not as dramatically as it did in '08. Still, with a potential exodus I don't know that I should hold on to such a massive home... the house had appreciated by something like $500,000, but that figure is now somewhere closer to $300,000. These gains could be gone in just months, or possibly even weeks.
So, what should I do? I've been considering renting it out for a hefty monthly sum but with a short lease as I suspect that with the city coming back the rental market here is going to fall off a cliff. A second option would be to keep it, and a third to sell it rapidly and move to a more manageable home closer to town.
I want to note that I didn't move here because of COVID. I moved here because I am enchanted by my town and neighboring ones. Be that as it may, I would prefer not to get eaten alive if the market plummets, which I have been concerned about for months now (see previous post).
Thank you all for reading, and if you have any feedback, I'd love to read it.
Don't panic. The city is Not coming back. Too much has been lost, amongst which is safety. Every mid-town stabbing likely adds thousands to your home's value, and the administration does not even recognize the problem. Your friends are seeing what they wish to occur. It is not the reality. Now if NYC ever elects another cleanup mayor or two as they had in the post Dinkins years, then if you wish to insure not losing money, sell your home. Bill DeBlasio is your friend as a Connecticut property owner with major appreciation in home value during his regime.
In the interim, enjoy, enjoy, enjoy your new surroundings.
Should I stay or should I go
If I go it will be trouble
If I stay it will be double
Take the Clash's advice if you're looking short term under 5 years or want to downsize, sell NOW, this spring/summer at the latest. Long term 8-10+ or the deathbed home, then you're fine.
9K homes on 4 acres are always trouble. Lots of maintenance. Too many moving parts. Double the trouble when you want to sell in a down market. There will be one, just no one knows when.
4K is much more manageable with still plenty of quiet time and space away from big city clausterphobia and pandemics.
Should I stay or should I go
If I go it will be trouble
If I stay it will be double
Take the Clash's advice if you're looking short term under 5 years or want to downsize, sell NOW, this spring/summer at the latest. Long term 8-10+ or the deathbed home, then you're fine.
9K homes on 4 acres are always trouble. Lots of maintenance. Too many moving parts. Double the trouble when you want to sell in a down market. There will be one, just no one knows when.
4K is much more manageable with still plenty of quiet time and space away from big city clausterphobia and pandemics.
4 acres? Double it! I'm on 8 acres of mostly grass - I'm going to get eaten alive on landscaping.
To your point, I am strongly considering selling. I anticipate that the higher-end home market is going to take a turn VERY soon. The city won't immediately become what it was pre-COVID, but thousands are returning to work and with a new (and hopefully better) mayor coming soon, I don't see FFC's upper-end market returning for a while.
Don't panic. The city is Not coming back. Too much has been lost, amongst which is safety. Every mid-town stabbing likely adds thousands to your home's value, and the administration does not even recognize the problem. Your friends are seeing what they wish to occur. It is not the reality. Now if NYC ever elects another cleanup mayor or two as they had in the post Dinkins years, then if you wish to insure not losing money, sell your home. Bill DeBlasio is your friend as a Connecticut property owner with major appreciation in home value during his regime.
In the interim, enjoy, enjoy, enjoy your new surroundings.
I'm a New Yorker who transplanted to CT. I've lived in 3 boroughs, including Manhattan and its more desirable areas (Fifth Avenue, Yorkville, and the Upper West Side). I strongly think that when work returns (which is already happening), the city population will grow exponentially again. I think that with greater employment again and a more populous city, crime rates will come down dramatically. What's more? The mayoral elections seem promising. If Sliwa or Yang or just someone decent get in, I can nearly guarantee that the city will have a mega boom; burgeoning economy, enabled police department and much lower crime. All of that doesn't bode well for Connecticut, but I do think the middle real estate market will hold until these developments happen.
Most of my friends who fled the city purchased homes and are staying put. The new NY/NYC tax rates are keeping even the suburban renters from returning. I also work in alternatives and despite our stodgy reputation - have been explicitly told that we will not be working 5x a week from the corporate office. Density is going to take a long time to rebound. Big homes and lots have staying power. The pendulum swings.
Many offices are adopting hybrid models - true. At the same time, though, I think offices will return to fully in-person soon after. Commuting from Wilton, Weston, and even New Canaan will be hard under either model, hence my friends leaving (although it should be said that they treated Connecticut as a palliative solution for COVID, not a long-term one. Others had more permanent mindsets when buying).
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