Ridgefield Market Report for February 2014

February 2014 unit sales of Single Family Homes in Ridgefield were strong when compared to the same time last year, and when comparing the year to date results. Overall, I’m very optimistic that the market will continue to improve with a slow and steady rise in sales price and a decreased days on market as we start to build inventory.

The Median Sales Price of a single family home increased in February to $610,000 from $436,250 a year ago, however the number of units sold dropped from 18 to 10. The year to date sales showed the same trend with the unit sales figures dropping from 38 to 26, but the median price increasing from $507,500 YTD 2013 to $686,000 YTD 2014. Typically, the low number of closed sales during this time of year can be attributed to the busy holiday season, however early 2014 sales were further impacted by the weather including storms and frigid temperatures.

The number of homes the went under contract in the month of February was 37, as compared to 29 last year despite the horrible weather conditions. I feel a good number of buyers have chosen to delay viewing and purchasing homes until slightly later in the season.

The Average Days on Market in February also showed a marked decrease from last year with 199 days compared to 239. February Months Supply of Inventory and new Properties for Sale also decreased relative to last year’s numbers. It is clear we have more buyers than inventory in certain price segments. We expect this trend to continue into the spring selling season, which is good news for sellers deciding to list early.

For a full graphical analysis of Ridgefield’s February market, download the report here. You can also take advantage of my complimentary Comparative Market Analysis to find out what your home’s worth.

Ridgefield Market Report : 2013 Year In Review

The Housing Recovery

After the worst housing downturn since the Great Depression, we are back in full force. After 8 years of correction as a result of the “housing bubble”, it is safe to say all the characteristics of a normal real estate market have returned. Prices remain stable, median selling prices are improving and overall market activity is the highest it has been in 5 years. Consumer confidence has increased, which has brought more buyers into the market, and sellers are feeling more confident that they are not selling their home in a sliding market. All price segments posted positive gains, while homes valued up to $800,000 continue to dominate the market. The popular price category of $900,000 – $1,000,000 tripled in volume when compared to 2012. The market for homes priced over $1 million grew 46% – a strong indicator of buyer confidence.

Connecticut’s #1 Town.

Ridgefield unit sales were up 45%. This demonstrates confidence that Ridgefield is a destination for many new buyers, while some sellers are also trading up or down to stay here. Buyers see the outstanding value Ridgefield has to offer – quality lifestyle, cost of living, top rated education and a vibrant community. In fact, Ridgefield experienced the highest increase in annual unit sales when compared to all towns in Fairfield County.

The Road Ahead.

We saw buyers react to the uptick in interest rates this summer, though interest rates are still low by historic averages. Since values are on the incline, we expect the buyer pool to increase in a last ditch effort to catch the market before prices and interest rates rise. Sellers are feeling more confident as they prepare for the Spring Selling Season, but realize that certain fundamentals still apply. Homes in “turn-key” condition will continue to outpace the competition in terms of achieving the maximum selling price and lowest days on market. A fair number of sellers who used this strategy had multiple offers on their home – from wonderful starter homes to sophisticated properties priced in excess of $1 million. Supply and Demand will continue to drive the Real Estate market.

Download Ridgefield Market Report 2013 Year In Review

http://108.179.243.173/~d5o7l0g4/wp-content/uploads/2014/01/140101-2013-Year-in-Review-V9-Ltr2.pdf

2013 – One Of Christie’s Best Years In History

We are proud to be partnered with such a forward-thinking and successful company as Christie’s. The luxury auction house is going strong, and the real estate arm – Christie’s International Real Estate – is great supporter of the luxury real estate market through their Bespoke program and other marketing initiatives.

In terms of the parent company, Christie’s announced sales of £4.54 billion ($7.13 billion), up 16% for the year ending December 2013. This figure is the highest sales total for Christie’s or any auction house in the history of the art market. Christie’s sales figures were driven by an increase in new buyers across all geographies coming to the market, including from growth markets such as China and through the Internet. Thirty percent of buyers were new in 2013 and accounted for 22% of the sales total.

Strong results were recorded in all regional sites during 2013, with significant activity in Asia driven by strong Hong Kong sales, up 32% and the company’s historic expansion into mainland China through its Shanghai office. The growth in new clients from China and the potential of this area of the art market was reflected in the firm’s highly successful inaugural Shanghai sale, which totaled £15.5 million ($24.9 million). Sales in Europe totaled £1.33 billion ($2.1 billion), Americas totaled £1.8 billion ($2.8 billion) and Asia totaled £622.6 million ($977.5 million). The increasing power of the Chinese buyer in the global art market was also evident with Chinese buyers accounting for 22% of global sales, a 63% increase on spend during 2012. Christie’s also expanded into India in 2013 and held its first sale in Mumbai in December, which realized £9.4 million ($15.4 million), more than doubling pre-sale expectations and attracted new buyers, including 35% who had never done business with Christie’s.

Steven P. Murphy, Chief Executive Officer, Christie’s, said: “With 16% sales growth and 30% new buyers coming in 2013, Christie’s has succeeded again by focusing on the art and connecting it to the ever-increasing audience of enthusiasts and collectors. We continue to see a surge in interest across categories and across the globe, fuelled in large part by the online platform enabling greater connectivity between buyers, sellers and the objects of their pursuit. Our strategy to invest in new markets such as China, new channels such as Private Sales and online sales, and to build on our position at the leading auction house, has enabled Christie’s to grow. Our continuing goal is to provide more to our clients and to convene new clients to enjoy art, be it through auctions, exhibitions or online.”

For information on how we partner with Christie’s on their Bespoke marketing initiatives, or how we can help you market your luxury property to protective buyers, contact me for a personalized consultation. For more market news delivered directly to your inbox each Friday, sign up below.

Ridgefield Equestrian Property Listed For $55 Million

A former dairy farm owned by one of Canada’s most important rail men is heading to market for $55,000,000. The property, which spans over 100 acres, features luxe accommodations for horses and humans alike. Hunter Harrison, the current owner, had planned on settling down at the property indefinitely, but after once again returning to the rail industry and spending much of his time elsewhere, he has decided to sell. Surrounded on all sides by rolling hills, the property takes full advantage of the considerable natural beauty in Ridgefield.

Stretching along both sides of Old Stagecoach Road, the expansive estate features a range of equestrian and human amenities. For the horses, Harrison installed a 3.5 acre jumping field, two barns, indoor and outdoor riding rings, and multiple enclosed outdoor areas. In addition to their gorgeous barns, the horses have access to an equine spa and treadmill.

No expense was spared for two-legged inhabitants of the farm either. The property features two smaller homes in addition to the 14,500 square foot main house. Even with a lavishly appointed living room featuring 38 foot ceilings and multiple fireplaces, the main home is easy to overlook in light of the sheer variety and quality of the property’s amenities. In addition to the extensive equestrian facilities, the home is equipped to meet any sportsman’s desires. It also features a 7-car garage, a golf room with virtual golf, a wine cellar, and a koi pond. Rounding out the home’s recreational features are a Jacuzzi spa and a waterfall behind the house.

This property represents the height of luxury and an exciting development in Ridgefield real estate. The owner’s choice of Ridgefield attests to the rustic charm of the town, while also confirming the relevance of Ridgefield in the current luxury market.

Sally Slater of Douglas Elliman holds the listing. She aims to expand the home’s marketing to the emerging areas of equestrian interest in the Middle East and China.

For what’s happening in the Ridgefield Real Estate market, sign up below or view my comprehensive market reviews.

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.

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

May Market – Ridgefield

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April Market – Ridgefield

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Tag Archive for: Monthly Market News

The Housing Recovery

Connecticut’s #1 Town.

The Road Ahead.