Ridgefield Q3 Market Report

The third quarter of 2017 sees the culmination of an active summer market with median values increasing for the first time this year when compared to 2016, and the number of sales remaining constant.

Unit Sales
Incredibly, the number of sales of single family homes in Ridgefield remained the same at 116 units in both the third quarters of 2016 and 2017, however the total dollar volume sold in Q3 2017 amounted to $93,705,894, up from $86,206,720 in 2016. Overall, since January, 294 homes have sold in Ridgefield compared with 269 during the same time last year. This represents an 8.5% increase and reaffirms that we are experiencing a healthy real estate market.

Market Inventory
The number of homes listed for sale was lower every month during Q3 2017 when compared to Q3 2016, with an average of 282 homes available for purchase. The average months of inventory was only 6 months in July and August, but has risen to 14 months in September, which is to be expected as families settle into school, and less new homes come on the market.

Pricing
The median sales price for single family homes is currently sitting at $657,500 as compared to $637,500 during the same period last year. This represents a nominal increase in median values of 3%. The average sales price also saw a shift towards higher values with the return of upper end sales. It rose from $743,161 in Q3 2016 to $807,809 this year. Homes also continue to sell at an average of 96.6% of the listed price.

For a snapshot of of single family home sales in September, click here.

Remodeling Seen As A Good Investment For 2018

As homeowners gain more equity, they are expected to continue heavily investing in home improvement projects and repairs through the third quarter of 2018, according to the latest Leading Indicator of Remodeling Activity report released by the Joint Center for Housing Studies of Harvard University. The LIRA index projects annual gains in home renovation and repair spending of 6.3 percent for the fourth quarter of 2017 and up to 7.7 percent by the third quarter of next year.

“Recent strengthening of the U.S. economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity,” says Chris Herbert, managing director of the Joint Center for Housing Studies. “Over the coming year, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.”

For homeowners looking to remodel for resale, the National Association of REALTORS® publishes a report looking at the costs of some of the top remodeling projects. Take a look at the 2017 Remodeling Impact Report.

As Realtors, we see the impact of a good remodel all the time. Painting the interior and exterior of your home in modern, transitional colors is a fairly quick and inexpensive way to make an immediate impact, as is removing heavy drapery and letting your windows shine. Upgrading bathroom vanities, tile and shower doors, as well painting or replacing outdated kitchen cabinetry, backsplashes and countertops is also a big hit. Decluttering – although not a remodel – goes a long way towards making your home feel fresh and new. If you want to learn more about how to get your home ready for sale, contact us for a consultation.

Welcome To The Porch

According to a Census data analysis from the National Association of Home Builders, more new homes are coming equipped with front porches. Sixty-five percent of new single-family homes started in 2016 included a porch. For comparison, in 2005, 54 percent of new homes had porches.

Certain regions of the U.S. are showing higher preference for porches. For example, the East-South-Central region of the U.S. had the highest share of new homes started in 2016 with porches at 86 percent.

The Census data from the Survey of Construction report does not indicate much information about the look of the porches. However, the NAHB reports that the Annual Builder Practices Survey, conducted by Home Innovation Research Labs, shows that front porches on new homes tend to be more common than side porches. Also, most new home porches are open rather than screened. The average size of a front porch on a new home is about 60 square feet, according to the report.

Front porches provide the best of both worlds: privacy and community, yet it also provides a “sense of separation” between the indoor living space and the street.

A front porch also provides ecological advantages. Because the windows are protected, you don’t have to close everything down to keep the sun out.

Like all home design, the range of styles runs the gamut, from traditional to contemporary and a lot of eclecticism in between. But one thing is for sure: There’s a desire to bring the indoors outside (with comfy furnishings) and let the cool breezes from outdoors waft inside.

Patio furniture has become more high-end and lighting has also improved – oftentimes with chandeliers or sconces making appearances. And besides being an aesthetically appealing architectural addition, renovating a home’s front porch can often boost both its curb appeal and sale price. So if you’re thinking of renovation ideas to tackle next spring, why not design and build a new porch?

Kitchen Remodels Offer Big Paybacks at Resale

According to Realtor.com, homeowners looking for a remodeling project may be smart to tackle a kitchen renovation if they’re looking for projects with the strongest buyer appeal and high returns on their investment at resale.

Kitchen renovations and upgrades are among the top remodeling projects most likely to add value to a home at resale and most likely to appeal to home shoppers, according to the 2017 Remodeling Impact Report, conducted by the National Association of REALTORS®. The report takes a look at the cost of the most common exterior and interior remodeling and replacement projects and gauges how much appeal they have to buyers at resale.

Fifty-four percent of REALTORS® surveyed reported suggesting to sellers that they complete a kitchen upgrade before attempting to sell. Twenty-three percent of real estate pros also said a kitchen renovation helped to close a sale.

The Remodeling Impact Report estimates that homeowners stand to recover 57 percent—or $20,000—of the $35,000 or so of the cost to take on a kitchen upgrade. The kitchen upgrade might include adding new energy-efficient appliances, sink, faucet, and vinyl flooring; repainting the walls and ceiling; and refacing cabinets with white paint/veneer and new hardware.

Kitchen upgrades don’t just offer the potential for some bang for your buck at resale but also have been found to make homeowners more happy. Eighty-one percent of remodeling consumers surveyed said they had a greater desire to be at home since completing their kitchen upgrade project, and 81 percent felt a major sense of accomplishment after the renovation.

The following interior projects REALTORS® ranked highest to lowest as remodeling projects that would appeal to home buyers (listed along with project estimate costs and the potential return on investment at resale):

1. Complete Kitchen Renovation
Cost estimate: $65,000
REALTORS® estimated cost recovered: $40,000
Percent of value recovered from the project: 62%

2. Kitchen Upgrade
Cost estimate: $35,000
REALTORS® estimated cost recovered: $20,000
Percent of value recovered from the project: 57%

3. Bathroom Renovation
Cost estimate: $30,000
REALTORS® estimated cost recovered: $15,000
Percent of value recovered from the project: 50%

4. New Wood Flooring
Estimated cost: $5,500
REALTORS® estimated cost recovered: $5,000
Percent of value recovered from the project: 91%

5. Add New Bathroom
Cost estimate of project: $59,000
REALTORS® estimated cost recovered: $29,750
Percent of value recovered from the project: 50%

6. Hardwood Flooring Refinish
Estimated cost: $3,000
REALTORS® estimated cost recovered: $3,000
Percent of value recovered from the project: 100%

7. New Master Suite
Cost estimate: $125,000
REALTORS® estimated cost recovered: $65,000
Percent of value recovered from the project: 52%

8. HVAC Replacement
Estimated cost: $7,475
REALTORS® estimated cost recovered: $5,000
Percent of value recovered from the project: 67%

9. Basement Conversion To Living Area
Cost estimate: $40,000
REALTORS® estimated cost recovered: $25,000
Percent of value recovered from the project: 63%

10. Closet Renovation
Estimated cost: $3,750
REALTORS® estimated cost recovered: $2,000
Percent of value recovered from the project: 53%

11. Insulation Upgrade
Estimated cost: $2,100
REALTORS® estimated cost recovered: $1,600
Percent of value recovered from the project: 76%

12. Attic Conversion To Living Area
Estimated cost: $75,000
REALTORS® estimated cost recovered: $40,000
Percent of value recovered from the project: 53%

Fall Is Great Time To Move

According to Realtor.com, a fall move may be just what you’re looking for. Less demand from families looking to get into a new home before school stars tends to open up the market a little bit, and the busy spring and summer season may motivate sellers to lower the asking price, hopefully avoiding the slowdown that inevitably sets in around the holiday and winter seasons.

Home buyers may also find attractive mortgage rates this fall. Mortgage rates are still under the 4 percent psychological threshold, which can be a luring incentive for borrowers. Freddie Mac reported last week that the 30-year fixed rate averaged 3.78 percent, holding steady at a 2017 low.

Studies have shown that fall can be the best time to buy. A study conducted by RealtyTrac in 2015 found that October was the best month for home buyers. Purchasers in October paid 2.6 percent below the estimated market value at the time for their home, according to the analysis.

Nationally, home sales in August started to decline heading into the fall season. Sales of existing homes fell 1.7 percent from July to August, but the National Association of Realtors mostly blamed the decrease on the limited number of listings for sale on the market – something we have also seen in Ridgefield.

To search all listings in Fairfield County visit our Property Search page or get in touch with us directly. There are deals just waiting to be had!

Ridgefield Schools Named Among State’s Best

Niche.com has released it’s 2018 Best Public Schools ranking and it comes as no surprise that Ridgefield schools once again fared very well. The district as a whole was ranked number 17 out of 118 school districts in Connecticut with good showings at all three levels of education. Our teachers were ranked number 8 in the state. Nationally, Ridgefield School District ranks number 709 out of 10,574 and comes in at number 389 in terms of our teachers.

District rankings were determined by a thorough examination and analysis of key statistics and millions of reviews from students and parents using data from the U.S. Department of Education. Ranking factors include state test scores, college readiness, graduation rates, SAT/ACT scores, teacher quality, public school district ratings, and more.

Ridgefield High School

Ridgefield High School placed #11 out of 196 Connecticut public schools, while our teachers ranked #9 and we came in at #7 in terms of collage prep. Nationally, Ridgefield High School places number 685 out of 17, 867 schools. Overall, Fairfield County counted many top 10 finishers with the ranking based on factors including state test scores, college readiness, graduation rates, SAT/ACT scores, teacher quality, and high school ratings. For a full ranking of the State’s Best High Schools, click here.

Ridgefield Middle Schools

Ridgefield middle schools also finished strong with East Ridge Middle School ranking #19 out of 287 schools and Scott’s Ridge Middle School in the #25 position. Reached ranking were #4 and #12 respectively. Middle school ranking involved a similar process to the high school ranking and included factors such as state test scores, student-teacher ratio, student diversity, teacher quality, middle school ratings, and the overall quality of the school district. You can see more about how Ridgefield Middle Schools ranked overall here.

Ridgefield Elementary Schools

Overall, Ridgefield elementary schools placed in the top 100 schools when compared to a total of 577 public elementary schools throughout the state. Branchville Elementary School ranked the highest at #37, with Ridgebury at #50, Barlow Mountain #58, Scotland #60, Farmingville #63, and Veteran’s Park #97. For a full list, see the rankings here.

New Trend – Living Rooms Are Heading Upstairs

After years of hearing the buzzwords “open concept”, homes are starting to see a bit more compartmentalization with additional cozy places to retire becoming more common.

As such, upper-level living rooms are becoming a sought-after space among homeowners, The Wall Street Journal reports. Homeowners are finding these second-floor lounges can be more informal spaces than living areas on the first floor—and can offer more privacy, too.

The idea behind these spaces are nothing new. Historic homes often have included an upstairs “retiring room” for mothers nursing children or for resting midday, says T. Jeffrey Clarke, an architect in Philadelphia, and Karla Murtaugh Homes has a few homes on the market right now that embody these qualities. You can check out 321 Main Street, 22 Oak Knoll Road, 285 West Lane and 258 Black Rock Turnpike, just to name a few.

Upper-level living rooms—sometimes labeled “pajama lounges”—are usually located right off bedrooms. They may include comfy sofas, a kitchenette, a television, and even a nook to work from. Architects are removing long hallway spaces upstairs to make room for these central living spaces upstairs.

The lounge area is intended for “the bedrooms [to] spill out, and the family can have a space to assemble,” says Kobi Karp, an architect in Miami who recently designed an upper-level living room in one of his projects. “It’s where you go on a Sunday morning and wait for the rest of the house to wake up.”

Upper-level living rooms tend to be more casual than their lower counterparts. They also tend to have recessed lighting instead of chandeliers and favor cozier seating areas over larger sectionals.

As families create new functions for classic spaces, it’s nice to see a trend recognizing the value that an antique home’s architecture and design brings to a modern world.

Source: “The Living Room Moves Upstairs,” The Wall Street Journal (Aug. 23, 2017)

Ridgefield’s 2017 Mid-Year Market Report

The first half of 2017 had sellers chomping at the bit to get their homes on the market early and take advantage of the relatively mild weather. Buyers were also out in full force looking to move when the school year ended and take advantage of the increased inventory. A very wet spring curtailed some of the action but unit sales have still surpassed 2016 by 17%, which is encouraging for steady growth. While home values have not risen, we have seen a competitive marketplace with multiple offers and homes selling for more than the asking price on numerous occasions. Also interesting is the segmentation that seems to be occurring in the market with the greatest gains seen in the $500,000-$600,000 and the $800,000-$900,000 categories. This is encouraging for middle-class families who are looking to upsize, downsize or move to the area for our wonderful schools, low crime, superb cultural offerings, family-friendly lifestyle, and proximity to major commerce centers.

Ridgefield Market Snapshot
Overall, the first half of 2017 has been a success for the Ridgefield Real Estate market. Unit sales increased 17.1% from January to June 2017 with 178 parcels selling compared to 152 in the first half of 2016. Total sales volume was also up 6.1% from $118,218,854 last year to $125,453,815 in 2017. The majority of home sales were priced under $1 million. If the market continues at its current pace, we are on track to match or exceed last year’s results.

Sellers Or Buyers Market
Inventory hit a record low in June 2017 with only six months worth of housing available for purchase. While this would suggest a sellers market, it does not yet seem to be playing out that way. The mid-year Sales-to-List Price Ratio held steady at 96.8%, slightly up from 2016’s 96.2%. However, pricing and the condition of the home still seem to be the key to selling with buyers using technology to assess for themselves what they think a property is worth. Sellers are also becoming increasingly savvy by staging and upgrading their homes for a quicker, more profitable sale.

Prices Holding Steady
The Median Sales Price for a single-family home in Ridgefield decreased by 5.0% from $660,000 in the first half of 2016 to $627,000 during the same time period in 2017. The average sales price also decreased from $772,672 to $704,797. Most of the growth in the first half of 2017 was seen in the $500,000 to $900,000 sector with 101 homes sold as compared to only 71 last year.

The Luxury Market
The luxury market – generally defined as homes selling for $1.5 million and above – saw a marked decrease in activity over the first half of 2017. Only two homes sold in this price range – one for $2.9 million and one for $3.1 million. There were no home sales between $1.5 and $2 million, which is unusual. Currently, as of July 1st there are four additional homes in this price range that are either under deposit or under contract to close by Labor Day, and anecdotally activity has picked up with more showings occurring in this price point. Sales were strong in the $1 million to $1.5 million category mimicking 2016 with 21 sales as compared to 22 last year.

Where Are People Buying?
Using Town Hall as the center of the Village, 37% of all sales occurred within a 2 mile radius in what would be considered “in-town” properties. Additionally, these in-town properties commanded a Median Sales Price of $739,000 and an Average Sales Price of $807,288, which is well above the town as a whole. The results support a continuing trend towards more walkable residences. We expect to see in-town properties remain desirable as both younger families escape the city and empty-nesters downsize. Upper end condominiums were also in high demand with five sold that were priced over $700,000, including one priced at $1,860,000.

Sales Up Across The Board
All Fairfield County towns experienced significant growth in the number of homes sold during the first half of 2017, reiterating the fact that individuals and families still consider Fairfield County a great place to live. However, it was a mixed message when it came to median home values with some towns showing double-digit increases, while others saw prices remain relatively flat or somewhat decreased. Traditionally more affordable towns like Stamford and Norwalk saw gains in pricing, while Wilton, Ridgefield and Redding saw values slip. Surprisingly, Westport experienced an almost 10% increase in median home value after seeing decreases during the past two years. Overall, slow but steady growth seems to be what we can expect throughout the county in the upcoming year.

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Staging Your Home Is A Good Idea

According to the National Association of Realtors, sixty-two percent of listing agents say professional staging decreases the amount of time a home spends on the market, while 40 percent of buyer’s agents say their clients are more willing to walk through a home that has been staged, according to the National Association of REALTORS®’ 2017 Profile of Home Staging.

Thirty-one percent of respondents to NAR’s survey say staging increased the dollar value of a home they sold by 1 percent to 5 percent; 13 percent of respondents say it increased a home’s dollar value by 6 percent to 10 percent. Agents on both the buying and selling side agree that the living room is the most important part of a home to stage, followed by the master bedroom, kitchen, and outdoor space.

While these results are self-reported and at the agent’s description, we would have to agree with the findings. Buyers have a lot of choice and we are still in a buyers market. It’s important for a seller to take advantage of every tool they can in order to entice buyers to take the next step. Sellers who staged are also more likely to get top-dollar for their home.

Just like the proliferation of professional and aerial photography, more and more agents are seeing the inherent value of staging and those Realtors who don’t stage will be left behind. The consumer is increasingly comparing apples to oranges online before they even make an appointment with a real estate agent, so a seller’s home needs to be enticing from the get-go.

See the Full Report to compare the buyer and seller perspectives or click to read about our Staging Services.