Fairfield County Homes for Sale: November 2010

What Impact Will the Black Rock Train Station Have on Sale Prices?

 One Mile Radius Black Rock Train Station

We know what drives property values - the attractiveness of a location.  There are certain characteristics that make a location more attractive than others and the convenience of commuting to work is one of the most important.  The new train station, which we'll call the Black Rock Train Station (located on the Fairfield Metro property), will provide Manhattan commuters with just over a hour of travel time.  There is already some anecdotal evidence that buyers have begun to purchase homes in Black Rock in anticipation of the train station, which is expected to be completed by the fall of 2011.  The addition of the Whole Foods store also adds value as will the businesses that develop around the train station. 

There have been many studies over the years which try to quantify the value of a train station for homeowners.  For residential properties, there is a sweet spot in not living too close to a train station so as to avoid noise and traffic congestion, but close enough to enjoy the commuting benefits.  Black Rock is far enough from the train station to avoid the noise and most of the traffic congestion.  Most traffic to the train station will come from the north from I-95 or Black Rock Turnpike or via Grasmere Avenue and Kings Highway.  Some commuters may use Fairfield Avenue, but properties on the water side of Fairfield Avenue will likely not experience any increase in traffic.

A study in Dallas found that residential property values within ½ mile of a train station (within walking distance) were worth 39% more than those further away (Weinstein & Clower, 1999).  The planned trans-Hudson commuter rail tunnel is expected to increase home prices within ½ mile of the train station by $29,000 and homes between ½ mile and two miles by $19,000.  Train stations with parking facilities have a higher positive impact on property values (Bowes & Ihlanfeldt, 2001).   Residential properties within ¼ mile of a train station are found to have lower value than those further away (Bowes & Ihnlanfeldt, 2001).  This means all residential properties in Black Rock should see a boost in sale prices as a result of the train station.  The question becomes how much and when will it occur?

It's too early to see the year end results, but a quick look at the MLS data suggests that the median prices went down in Fairfield 2009 compared to 2010 and stayed relatively the same in Bridgeport, Shelton, Stratford, and Trumbull.  There were also fewer sales in Bridgeport, Trumbull, and Stratford than last year.  In Black Rock, however, both sales prices and number of sales have increased over 2009.  Sales prices are up 9% and number of sales are up 14% in Black Rock.  So perhaps the new train station is already having an effect.  Savvy investors should consider Black Rock now BEFORE the trains start leaving the station.  This is an excellent time to buy during the normally slow winter months, when there are fewer buyers to compete with, and while mortgage interest rates are just barely above 4%.

 _______________________________________________________________________________________

Bowes, D. R., & Ihlanfeldt, K. R. (2001).  Identifying the Impacts of Rail Transit Stations on Residential Property Values.  Journal of Urban Economics, 50, 1-25.

Strunsky, S.  (July 19, 2010).  "Railroad tunnel connecting N.J., N.Y. will increase property values, study says." The Star Ledger.

Weinstein, B., & Clower, T.  (1999).  The Initial Economic Impacts of the DART LRT System.  Denton, Texas: University of North Texas, Center for Economic Development and Research, report prepared for the Dallas Area Rapid Transit District.

 

 

 

Click on icons below to go to Black Rock Real Estate and Black Rock Community websites as well as social media sites:

 

                                 

 

 Active Rain Subscribe to Blog         FaceBook Black Rock CT         Twitter Gail Robinson         Flickr Gail Robinson        ActiveRain Pinterest Icon     ActiveRain YouTube Icon

 

Recent awards:

 

                    

Comment balloon 6 commentsGail Robinson • November 28 2010 01:46PM
What Impact Will the Black Rock Train Station Have on Sale Prices?
share
We know what drives property values - the attractiveness of a location. There are certain characteristics that make a location more attractive than others and the convenience of commuting to work is one of the most important. The new train… more
Black Rock Library Children's Programs
share
Tuesday, November 30th 5:00 - 6:30 PM Black Rock Branch Chess night Children's Area-Learn and practice chess! All ages! Wednesdays 10:45 AM Black Rock Branch Little Rocks! Wednesday mornings,… more
City by the Sea Art Fair
share
First annual City by the Sea Art Fair (CSAF) is scheduled for May 14-15, 2011. A weekend-long regional juried art exhibition celebrating the vitality and creativity of our waterfront metropolis, the fair will include live musical performances… more
JUST REDUCED to $148, 000 Condo in Black Rock with Water Views
share
350 Grovers Avenue, 1G BRIDGEPORT, CT Amazing water views of Black Rock Harbor from 1st flr unit w. garage. Complex has in-ground pool and cabana. 1BR/1BA Condo $148, 000 Year Built 1975 Sq Footage 651 Bedrooms 1 Bathrooms 1 full, 0 partial… more
Black Rock Rotary Holiday Party
share
November 22, 2010 by admin comment Please join us at the Black Rock Branch Library, 2705 Fairfield Avenue on December 11th between 2 and 5pm for a holiday celebration! Santa will be visiting and giving out gift wrapped children's books for… more
Fall Bird Watching Update at Ash Creek
share
Hi… Fall has arrived with today's 11/15th three dozen American Wigeon's.. and yesterdays Mergansers both Red Breasted and Hooded… the pair of Swans often visit with their "teenager'. &. past two days the frantic feeding of… more
Fairfield Christmas Festival to Donate Proceeds to Burroughs…
share
Founded in 1981, the Fairfield Christmas Tree Festival, Inc. is an independent, non-profit group of volunteers with no paid staff, no office space, and whose purpose is to raise funds for local community projects. 100% of the net proceeds… more
Black Rock Tree Lighting on December 5
share
The annual Black Rock Christmas Tree Lighting will be held on Sunday, December 5, 2010 at 5 pm at the Brewster Street Flagpole The Wassail Party at the Norden Club immediately follows the ceremony and will be for BRCC members only so… more
How I Got Converted Into An Ecstatic Believer
share
Another Caterina Bannier blog post. She discovers new technology that I've been considering using and actually uses it. I wait to see how well it works for her before diving in. Thought you might find this post useful as well. Oh, come on--of… more
Attention AR Addicts: Here Is How To Blog From Your iPad Or iPhone!
share
Very cool iPad or iPhone app. When Verizon gets the iPhone early next year, I expect I'll switch over to it from my Treo. It's just amazing what you can do with this technology. Was it invented just for us REALTORS? This is the day I made half… more