Tag Archive for: Monthly Market News

Wilton Q1 2022 Market Report

The Wilton real estate market continues to take advantage of the current surge. While inventory and the number of sales are typically lower in Wilton than in Ridgefield, the town has enjoyed an earlier resurgence of inventory particularly in the over $1 million range. This has led to higher median and average sales prices than in Q1 2021. For example, 52% of all property sales in Wilton in Q1 2022 have been for homes priced in the $1 million and over range compared to only 26% in Q1 2021. In addition, there have been twice the number of luxury properties (homes selling for more than $1.5 million) in 2022 compared to 2021, with 20% of all sales being in this price point. This noticeable surge in luxury sales has definitely influenced the median and average sales prices in the town. The number of sales in Wilton has also decreased as in Ridgefield, but is still slightly higher than the pre-pandemic numbers. As we move into the typically fast-paced spring market, it will be interesting to see if supply can keep up with demand.

Ridgefield Q1 2022 Market Report

Overall, the Ridgefield real estate market for single family homes was healthy in the first quarter of 2022. While the main issue affecting the number of sales was low inventory, we have started to see an uptick in homes coming on the market, particularly in late March. There are still many buyers searching for homes, and sellers are getting creative with rent backs and other tools while they sell and make their next move. It is also important to note that while values seemed to show a decrease from last year, that is almost entirely due to the breakdown of homes that are selling. For example, in Q1 2021, homes in the over $1 million category made up 33% of all sales, while in 2022 they were only 29% of total market share. In addition, the luxury market (homes selling for greater than $1.5 million) accounted for 12% of all sales in Q1 2021, compared to only 6% this year. The drop in the share of homes selling in these price points has an overall negative effect on both median and average sales prices as reflected in these statistics. This is nothing to be concerned about as the number of sales equals or exceeds our more normal markets of 2018-2020, and the median sales values are up compared to those years as well.

COMPASS is the #1 Brokerage in USA for Closed Sales Volume!

I am so excited to be part of such a dynamic brokerage and am pleased to share that as of the end of 2021, COMPASS is now the largest brokerage in the United States in terms of closed sales volume (RealTrends 3/16/22). This is pretty remarkable considering we were a start-up 10 years ago and now we’re number 1!

What This Means For You?

I am proud to be a part of the largest brokerage in the U.S. where I can best support you! Powered by the COMPASS network and its technology, I have access to the top agents nationwide and can help you with all of your real estate needs.

In this challenging real estate market, my agent referral network can help you make your next move with confidence. I know a lot of you are thinking of selling, but not sure where to go. This “chicken and egg” phenomenon requires a skilled, seasoned agent to help you navigate it successfully. There are a number of COMPASS initiatives available, which will help sellers be in the best position possible to navigate their property sale and what they’ll do next.

I can confidently say our referral network is officially the best in the United States. Almost anywhere you are considering moving, COMPASS has a highly talented, high integrity, well-respected and hardworking agent I can refer you to.

If you’re interested in learning more about how I can help you capitalize on this hot real estate market, let’s set up a time to connect. And don’t hesitate to reach out if you have any other questions. 203-856-5534 or karla.murtaugh@compass.com. Together, we will MOVE YOU!

Ridgefield Market Continues To Out Perform

Overall, Ridgefield single family homes sales in February were reduced compared to 2020 and 2021 due to a lack of inventory. Only 12 homes sold this past month, with a Median Sales Price of $646,000 and an Average Sales Price of $796,875. However, it is important to evaluate these numbers as part of a bigger picture, and not in a bubble. In reality, there are plenty of qualified buyers still looking to purchase, but there is a relatively small selection of homes for them to choose from!

When comparing year-to-date sales, a picture emerges reflecting a strong market with all the markings of an exceptional year if sellers choose to list their homes for sale.  The Median Days On Market for January and February 2022 was 62 days compared to 65 in 2021, 105 in 2020 and 79 in 2019. In general, homes are spending almost no time on market, often selling with multiple offers within the first few days. The Sales to List Price Ratio reflects this trend with the current ratio sitting at 100.7%, while 2021 was 99.4%, 2020 at 95.5%, and 2019 at 94.3%.  Again, inventory is the biggest challenge. Currently there are only 3 months of inventory on the market, compared to 3 months in 2021, 10 months in 2020 and 14 months in 2019!

Pricing is also interesting due to this lack of inventory. There were many more sales in lower price points than in the luxury market, resulting in January and February 2022 showing large price decreases from both 2021 and 2020. The Median Sales Price YTD is $723,750, a 15% decrease from 2021, but a 32% increase from pre-pandemic 2019 values.  The Average Sales Price tells a similar story decreasing 10% from 2021 to $829,143 but remaining 12% higher than prices in 2019. Perhaps the biggest decrease is seen in the 34% drop in the number of homes sold when compared to the same time in 2021, but a 55% increase over 2019.

The overarching message here is that the Ridgefield real estate market is extremely healthy and is simply waiting for an influx of properties to be listed. Spring is traditionally the strongest time to list a home for sale and we are seeing an uptick in interest from potential sellers here and in surrounding lower Fairfield County towns. In my expert opinion there is no time better than the present to sell your home.

If you would like to have a more in-depth conversation about your home’s value, connect with us today. Karla Murtaugh 203-856-5534 or karla.murtaugh@compass.com.

 

Compass, Inc. Reports 2021 Results & Growth

New York, NY – February 16, 2022 – Compass, Inc. (NYSE: COMP), the leading tech-enabled real estate brokerage in the United States, announced today that revenue for the full year 2021 was $6.4 billion, up 73% year-over-year. Revenue for the fourth quarter 2021 was $1.6 billion, an increase of 31% year-over-year.

The Compass technology and services platform contributed to year-over-year transaction growth of 56% for the full year 2021 and 20% for the fourth quarter.

Net loss was $494 million for the full year 2021 and $175 million for the fourth quarter. For the full year 2021, Compass achieved positive Adjusted EBITDA of $2 million compared to an Adjusted EBITDA loss of $156 million in 2020. In the fourth quarter of 2021, Adjusted EBITDA loss was $51 million. The majority of the net losses in 2021 were driven by the non-cash stockbased compensation expense of $386 million for the full year 2021, $149 million of which was one-time related to the IPO, and $93 million for the fourth quarter.

The Company’s cash position remains strong, with $618 million in cash and an unused $350 million revolver available to invest in the growth of the business.

“I am happy to announce that our strategy of achieving strong revenue growth while improving profitability and investing in our business is working exceptionally well,” said Robert Reffkin, Founder, Chairman, and CEO of Compass. “We delivered exceptionally strong revenue growth of 73% in 2021 increasing revenue to $6.4 billion as our agents closed a record 225,000 transactions, up 56% in 2021 while the industry grew transactions by 8%. We ended the year with positive Adjusted EBITDA, two years ahead of the timing we communicated at the IPO. Today, we are guiding to continued strong growth in Adjusted EBITDA in 2022 and beyond.”

Reffkin continued, “In nine years, we have built a powerful brand across the United States with more than 26,000 agents in 69 markets covering nearly half of the US population. In 2021, we added nearly 7,000 agents as we launched 25 new markets and grew our national market share to 5.6% which is up from 4.0% in 2020 and 1.1% in 2018. Agents tell us that the reason they decide to bring their business to Compass is our agent-focused culture and our proprietary vertically-integrated technology platform that provides a critical edge in a real estate market increasing in competition for talent, listings and clients. We continue to have industry leading principal agent retention of over 90% and we had a net promoter score in 2021 of 71 with our agents.”

Higher usage of the Compass platform is contributing to enhanced agent economics, productivity and retention. A cohort study of platform usage among our agents1 found that in 2021, the top 25% of Compass teams who used the platform most:

● Represented 55% of all Compass transactions;

● Grew their Gross Commission Income 2.6x, compared to the bottom 25% of agent teams;

● Retained principal agents at an annual rate of 98% versus 86% for the bottom 25% of agent teams; and

● Used the platform consistently – Top multi-agent teams spent an average of 4 hours per day (assuming a five day work week) using the tools and single-agent teams used the platform more than 2 hours per day.

FY2021 Financial Highlights:

● Revenue increased by 73% from FY2020 to $6.42 billion as transactions increased 56%.

● GAAP Net Loss was $494 million, compared to $270 million in FY2020.

○ GAAP Net Loss margin was 7.7%, compared to 7.3% in FY2020.

● Adjusted EBITDA was a positive $2 million, compared to a $(156) million loss in FY2020.

○ Adjusted EBITDA margin was 0.0%, compared to (4.2)% in FY2020.

FY2021 Operational Highlights:

● Agents: Average Number of Principal Agents was 11,058, an increase of 2,372 from FY2020.

● Transactions: Compass agents closed 225,272 Total Transactions in FY2021, up 56% from FY2020, compared to a 8% increase in transactions for the residential real estate market . Our Principal Agents averaged 20.4 transactions on our platform in FY2021, up 22% year-over-year.

● Gross Transaction Value (“GTV”)6 : GTV of $254.2 billion increased by 68% from FY2020. This was a record year for Compass, reflecting strong transaction volume and higher average transaction values. GTV per average principal agent was $23.0 million, up 32% year-over-year.

● Markets: In FY2021, Compass entered 25 new markets, bringing the total markets served to 69 at the end of the year.

Ridgefield 2021 Year End Market Report

The 2021 Real Estate Market maintained momentum but felt less panicked than in 2020. The number of sales decreased slightly from 556 to 482 mostly due to a lack of inventory, which remains challenging. Buyers are still out in force and homes are selling in 60 days on average, as opposed to 70 days in 2020. The overall sales volume only differed by $38,000 from 2020 on a total sales volume of $451,645,946. Homes also generally sold at or above asking.

Looking ahead, while it continues to be a seller’s market, the frenzied pace of 2020 has subsided to a dull roar. There are still plenty of buyer’s looking for homes, and with mortgage rates expected to rise slightly – although still remaining historically low – there is a sense of urgency to find the perfect property. Inventory remains the biggest challenge, but we are encouraged already this year with many sellers’ reaching out to begin the process of listing their home. Ridgefield has benefited from continued remote work options and the quality of life and vibrancy of our town is clearly getting noticed. We also continue to see Ridgefield residents trading up and down in this market, which speaks volumes for our community.

SEE THE FULL REPORT HERE

Ridgefield Highlights

• There was a 13% decrease in the number of homes sold in 2021 compared to 2020
• There was a 15% increase in the median sales price year over year
• There was a 15% increase in the average sales price year over year
• Homes priced in the $1.0 to $1.25 million range saw an increase from 47 to 70 sales this year
• The higher end of the Ridgefield luxury market – over $2 million – saw huge gains with 19 sales in 2021 compared to 11 in 2020
• The highest value home sold in Ridgefield in 2021 was $6.6 million

Fairfield County

2021 continued to boast favorable market conditions for towns throughout Fairfield County. While many places saw double digit growth in median sales value, the number of sales decreased year over year in most areas. Greenwich, New Canaan, Norwalk and Stamford were exceptions to this rule and experienced large gains in both the number and value of their single-family home sales. Weston experienced an unprecedented growth in median sales price (35%) over 2020. As is being felt everywhere, if inventory stays fluid, we expect to continue to see price and the number of sales hold steady

Ridgefield October Market Report – A More Normal Market Returns

October 2021 Prices Remain High Even As Number of Sales Fall
In a turnaround from 2020s frenzied fall market, 2021 presents with sales figures more similar to the seasonal nature of 2019. With the majority of homes closing in October being purchased after the start of school, it is no surprise that the number of sales decreased as it does in a more normal market. As a comparison, October 2020 saw 131 homes sold, while only 32 closed in 2021 and 42 in 2019. Overall sales figures also showed a similar pattern for October 2021 with a 71% decrease from October 2020, but only a 2% decrease when compared to 2019. The overall sales volume in October 2021 was $32,004,400. On the flip side, both the median and average sales prices remain high when comparing past years. The October 2021 median sales price sits at $794,500 which is 9% higher than $730,000 in 2020, and 30% higher than $611,250 in 2019. The average sale price was $1,000,153 in October 2021; 17% higher than $850,161 in 2020, and 28% higher than $779,349 in 2019.


Year To Date Sales Compare Favorably To 2020
While the monthly sales show a return to seasonality, overall the year to date sales and values show an increase over 2020. From January to October 2021 a total of 424 homes sold, which is comparable to the 435 homes changing hands by this time last year. The overall sales volume was actually up 15% during the same time as last year coming in at $397,473,336 in 2021. Median and average values also showed steady increases. The median value to date sits at $822,500 compared to $690,500 in 2020; an increase of 19%. The average value is up 18% from 2020 at $937,437 compared to $795,420.

What Lies Ahead?
While it’s impossible to predict the real estate market, we are seeing sales steady out at more normal levels across all price points. Inventory is still unnervingly low going into the holiday season, but we’re hoping that the increased values and more certainty about Covid-19 leads to increasing consumer confidence. Real estate has become a solid investment throughout the pandemic, and it will be interesting to see if the trend of urban to suburban moves continues or reverses itself in the coming year.

Ridgefield August Market Report – Low Inventory Remains Main Issue

Year To Date Sales Remain Strong

Year over year January through August single-family home sales remain strong with 351 homes sold to date in 2021 vs 298 in 2020 – an increase of 18%.  We see the same trend in overall sales volume, which saw a 43% increase year over year ending the year-to-date at $329,473,587 with rising prices and continued demand for properties responsible for the continuing uptick.

Low Inventory Means Less Sales, Less Overall Volume In August 2021

For the second month in a row the number of closed transactions is lower in a given month than what was seen in that same month in 2020. There were 58 sales in August this year, a decrease of 19% from the 69 sales in August 2020. There was also a 7.5% decrease in the overall sales volume with August 2021 coming in at $55,711,650 vs $60,211, 700. Given the buying cycle, homes closing in August were most likely to have been purchased in June – the key time observed for the large exodus of buyers from NYC in 2020. It’s also a sign that limited inventory is making it hard for buyers to find homes – the main limiting factor in real estate right now.

Prices Remain High With No Sign Of Dropping

Another result of the limited inventory is that the price of homes continues to remain at all time highs.  Mortgage rates are holding steady, and values are showing no signs of slipping. While the market is not as frenzied as previous, homes remain in high demand with buyers chomping at the bit to make to a move. In August alone the median price was up 13% year over year from August 2020 landing at $835,000 vs $740,000 a year ago.  Year-to-date, the median home price is 28% up year over year sitting at $825,000 vs $645,000.  The average price in August 2021 is up 10% at $960,546, while year over year it is up 22% at $938,671.

 

Ridgefield July Market Report – Prices Remain High

Sales Slowing, But Prices Remain High

2020 was an unusually busy year for real estate across the entire nation with low inventory and high numbers of buyers. As we enter the second half of 2021, we are seeing a slight slowdown in the number of sales happening and a return to seasonality in the market. This is understandable given people are once again taking vacations. July saw the number of unit sales decrease from 72 in 2020 to 55 in 2021. Year-to-date sales stayed elevated however with 292 homes closing in 2021 compared to 229 last year (an increase of 28%).

Overall Dollar Volume, Median & Average Prices Up

Due to an overall increase in price sales volume has not suffered in July despite the slowdown, staying the same at over $50-million dollars. Year-to-date sales dollar volume also increased over 2020 by a margin of 61%, with a total of $272,974,437 sold vs. $169,811,694 by this time last year. The median price of a single-family home in Ridgefield was up 30% year over year standing at $825,000 currently, and was up 37% ($875,000) when comparing July sales only, The average sales price increased 26% to $934,844 year year-to-date.


Looking Ahead

Our biggest challenge moving into Q3 and Q4 2021 is the lack of inventory. Particularly at more competitive price points ($600,000-$900,000), the lack of new homes entering the market is cause for concern. There are still buyers looking for homes, although that seems to be slowing slightly as buyer fatigue sets in. For now, homes that in good condition and are priced accordingly are still selling at or above list price, and we are seeing some multiple offer situations. It will be interesting to see how the fall market rebounds as mortgage rates continue to remain at record lows, prices stabilize and the Delta variant of Covid-19 comes into play. It does seem to be moving towards a more balanced market for buyers and sellers.

Click here to see a breakdown by price or click here to see quick summary.