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.