New On Our Website – Real-Time Real Estate Market Reports

Being informed about the real estate market in your chosen town is crucial when determining pricing, or reviewing purchasing options. I believe that constantly examining and interpreting what’s going on in home sales allows me to gain much needed insight into how real estate is trending, so I’m very excited to announce the availability of a new tool for your complimentary use – “Know My Market“.

This great resource allows you to search towns or zip codes in Fairfield County, and provides you with a comprehensive snapshot of what the local real estate market is doing. Using charts and graphs, it allows you to gain insight into:
1. Median sold price
2. Average days on market
3. Properties that opened escrow
4. New properties for sale
5. Months of supply of inventory
6. Closed sales

To use Know My Market, simply start typing in the town or zip code you want to research, click on the drop down menu when you see it listed, and choose what type of home you’d like to see reports for. Then scroll through the graphs to gain a clearer picture of what’s going on in that local market. You can even save the report and print it out.

Whether you’re a first-time home buyer, seller, investor, or in the market for a luxury home, starting here will help you gain valuable information. To learn more about my interpretation of the Ridgefield and area real estate market, view my comprehensive Mid-Year or Year In Review Market Reports.

To get a copy of the 2013 Year In Review Real Estate Market Report delivered directly to your inbox, sign up below or contact me directly.

Why It’s A Good Time To Buy A Home In Ridgefield

After a stronger 2013, the Fed’s bond buying, which has pushed down interest rates, may begin to slow. Consumer confidence and home prices are both up over last year, which indicates that the economy has and may continue to strengthen. As the Fed sees less need for monetary stimulus and reduces the number of bonds it purchases, mortgage rates will increase. The Fed has already reduced the volume of bonds it is buying each month. Last month, the number was reduced from $85 to $75 billion and Federal Reserve President Charles Plosser suggested that the amount may be further reduced to only $25 billion in the coming months.

Plosser is bullish about the economy. According to his statement in Reuters : “if the economy continues to grow and strengthen I think that there’s no reason why we shouldn’t want to consider speeding the process up [of reducing bond-buying numbers] if we can”. He has plenty of reasons to think so – housing prices and consumer confidence have both increased year-over-year. Consumer confidence rose sharply from 72.0 in November to 78.1 in December. According to the National Association of Realtors, existing single family home sales in the Northeast outpaced national numbers, increasing by 6% year-over-year. Housing prices followed suit, rising 9.4% on average since December 2012. All indicators showed that the market was stronger in 2013 and that trend looks to continue. Within Ridgefield, 2013 was a great year for buyers and sellers alike as sales volume and median sale price increased.

The implication of these changes is that now may be the best time to purchase a house for the foreseeable future. However, even if mortgage rates rise, they are already at historically low levels, meaning that it is and will continue to be a great time to buy. For more information about how the real estate market in Ridgefield affects you, sign up below to receive our 2013 Year End Market Report. The market is recovering well, and we have the expertise and network to help any client succeed.

Ridgefield Ranked #1 Town in Connecticut

According to Connecticut Magazine, Ridgefield was again ranked number one for towns with a median home value of over $300,000, edging out Darien, New Canaan, Wilton and even Greenwich to claim the top spot. Minuscule crime rates, world-class public schools and a thriving local economy all contributed to the high ranking.

With a median 2013 sale price of $605,000, and a 2012 high school graduation rate of 98.2%, Ridgefield is a great family town!

For more information, see the full article here.

The Christie’s Conference

Last week, Jana and I journeyed to Rockefeller Center in NYC to attend the Christie’s Northeast Conference. Joined by Russ Neumann, we had ample opportunity to learn about the Christie’s Bespoke marketing program; unique advertising avenues for us as Affiliates; how the art market mirrors the real estate market; and what interior design brings to a home.

Along with some fabulous networking, perhaps the most important nugget of information we took away from the day was that the luxury market is slowly gaining ground, and is being particularly influenced by investment from markets such as China and Russia. Armed with new contacts, new information and new resolve, we came back energized and ready to get to work helping put buyers and sellers together in meaningful transactions.

Pictured above are Karla Murtaugh and David Kornmeier of Brown Harris Stevens real estate.

What Rising Mortgage Rates Mean For Buyers

When purchasing a house, a buyer’s chief concern, besides living in the home, is paying for it. Although mortgage rates are at historic lows, the gradual recovery of the economy and an increase in home sales may cause a rise in both rates and home prices. As the economy improves, investors generally stop buying bonds in favor of higher risk investments with greater returns. Because mortgage rates are in direct correlation with bonds, as the economy continues to improve, rates are likely to increase.

In addition, mortgage rates are trending toward their 2009 and 2010 levels. The fact is, a 30-year fixed rate conforming mortgage with 4% interest may become the future equivalent of the previously standard 3.25% mortgage. This new rate, however, is still extraordinarily low. The difference between these rates would amount to around $175 per month on a $417,000 (the threshold for conforming loans) mortgage. In other words, the change in rates would result in a buyer’s purchase affordability, decreasing the loan size by about $40,000.

Among the changes that have occurred in the market recently are that qualifications are stricter, reducing the loan size a borrower can qualify for versus 2003 underwriting guidelines. Including income, credit score, and credit history, etc., approvals are considerably more thorough. Because of these changes, getting into the housing market without pre-approval can create destructive difficulties for buyers. Whereas a rough approximation based on self-reported information had often been sufficient, the new, stricter standards mean that everything must be documented. Even minor differences between one’s hypothetical and official incomes can permanently disrupt closing. Similarly, inconsistent incomes such as bonuses may not be considered in year-to-year income, just as entrepreneurs’ incomes and taxes may not pass the financial litmus test. Essentially, a comprehensive underwritten pre-approval has become de facto mandatory – entering the market without one is foolish.

The sum of this information is that rates have increased ½ point since May 1st and housing prices have risen 8.8% May 2012 – May 2013 and are expected to continue to rise. For consumers, now is the perfect time to buy a home, as both prices and rates are still the lowest they’ve been in decades.

Article written by Richard Duffy

Tag Archive for: Buying