Located within the Stonington Borough, this 15-unit apartment building boasts of long-term full occupancy attributed to its shoreline village atmosphere with direct proximity to local shops, restaurants, and recreational attractions within walking distance.
The property was placed under contract after being on the market for less than a week. With multiple offers submitted, a full price bid was secured and fortified with backup offers as well as further inquiries accrued over the span of the contract period until the date of closing.
Demand for multi-family properties (4 units or more), appears to have spiked over time, fueling speculation that this very demand could be linked to the affordability of home prices for first-time homebuyers ‘within targeted zip codes.’ The reason being that at current market levels, the more financially feasible alternative is to exercise the rental option until a housing correction is triggered once again. Another catalyst for price appreciation for starter homes within specific locales is the extreme demand for “turn-key” homes that are “move-in ready”. Fewer first-time homebuyers are exploring the 203-k mortgage option that builds the cost of improvements into their monthly mortgage payment. As a result, investors and “flippers” reap the benefits of these rehab opportunities that provide them lucrative returns and quick turnaround timeframes, attracting willing buyers compliant with paying premium prices that may not be financially advisable. This irrational exuberance of markets reflected in consumer behavior further inflates home prices that inevitably reach unsustainable levels. This repetitive real estate “cycle” has existed for decades and continues to provide a boom & bust scenario. The span of these cycles is seldom the same and likely being lengthened by the differing spending habits of millennials and younger generations exhibiting waning interest in homeownership. Nevertheless, they still require housing that suits their individual needs. Hence, the augmented demand for rental housing that is accelerated by a two-fold combination of affordability, compounded by the changing preferences of the younger generation evidenced by peaking, (sometimes unexplainable) prices currently being paid for multi-family properties at this time…
Valuation Specialist, Real Estate Consultant
Offices in Mystic, Old Lyme and Essex
Group Qualifications To be Your Guide: B.S. Real Estate (UCONN),
MBA, Former Appraiser, Top 1% of Agents, Graphic Designer, Social Media Expert