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Ridgefield’s 2016 Year End Market Report

What a year! The Ridgefield Real Estate market rallied resulting in the best year since 2013’s banner season. Overall sales volume was up at $259,407,724 as compared to $241,208,027 in 2015. Unit sales increased 8.1% with 348 homes selling in 2016 compared to 322 the year before. With the uncertainty of an election year behind us, as well as steady increases seen in financial markets and slowly rising interest rates, there is reason to believe that this trend towards slow and steady growth in the Ridgefield Real Estate market will continue.

A Buyer’s Market
Buyers were out in force in 2016, and they had a lot to choose from. Armed with a plethora of information at their fingertips, historically low interest rates and a 12.5% increase in Ridgefield home inventory over 2015, they were able to make better, more informed decisions than ever before. The fourth quarter of 2016 was unusually busy and set up a strong pipeline into the first quarter of 2017. This is reminiscent of what happened at the end of 2012 and into 2013. Predictors suggest continued growth and improving sales throughout 2017.

No Bump In Price
The median sales price for a Ridgefield home remained relatively the same in 2016, decreasing
by only 1.9% to $640,000 from last year’s 2015 $652,500. The average sales price was $745,424
compared to $749,093 in 2015, while the sale to list price ratio was 96.4%. The rise of the “HGTV -phenomenon” placed a burden on sellers with buyers expecting homes to have kitchen and
bathroom upgrades, as well as more current design elements. We see this trend continuing.

Looking Ahead
While there has been no appreciable increase in home values, the market indicators continue to point to a stable real estate market. With inventory increasing, and interest rates slowly climbing, buyers will continue to look to invest in homes they feel offer real value. As always, location plays a key role in purchasing decisions with homes residing in-town or in good commute locations creating the greatest demand. As baby boomers become empty nesters, all indicators point to a demand for more functional homes that can be easily maintained. At the same time, we have seen upward movement in the market from Ridgefield residents moving their families into more spacious homes, as well as from buyers moving into Ridgefield to take advantage of our highly-ranked schools and great community.

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Happy Holidays To All

During the Holiday Season, our thoughts turn gratefully to those who have made our progress possible. It is in that spirit that we say thank you. Best wishes for a happy and healthy new year from all of us at Karla Murtaugh Homes.

Ridgefield Market Report : Mid Year Review 2016

Holding Steady

Coming off a mild winter, we were anticipating a better than average Spring Market and unit sales were actually up 9% over the same period last year. While the median sales price remained somewhat flat, the average price for a single family home experienced a 4.3% increase.

News of GE moving its headquarters out of nearby Fairfield, CT was disappointing, but has not had a negative effect on the property values here in Ridgefield. Fairfield County continues to be one of the most desirable regions in the tri-state area to live, and Ridgefield in particular continues to offer great value with the award-winning schools, vibrant downtown, numerous cultural destinations, strong community presence, beautiful landscapes, amazing quality of life and a reputation as of being one of the safest towns in the US.

Supply and demand will continue to drive the market. Most of our growth occurred in the under $1 million segment, but we did experience a small increase in units sold in the upper segments as well. We saw more demand in the $600,000- $800,000 segment outpacing the inventory available during the spring market. At the same time, inventory grew in the luxury segment, where demand was not as high. It remains a buyers market, which keeps raising the bar in terms of expectations. Buyers respond favorably to properties that reflect the latest design trends, are in “turn-key” condition and are priced properly, therefore portraying good value.

Looking Ahead

Another strong indicator of a healthy market is the number and value of pending sales. As of July 1st – based on the number of properties already in contract and under deposit – we have the potential to sell an additional 100 properties before Labor Day. This should keep us on track until the end of the year – and at a minimum – it will keep us on par with 2015. The fourth quarter is a bit tricky to predict considering the upcoming Presidential Election and the mitigating economic factors such as Brexit and other international influences. With interest rates still historically low, we should see serious buyers strongly seeking out the best value.

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4 Home-Related Tax Deductions You Shouldn’t Overlook

Tax season is upon us, and if you’re a homeowner, you can claim some sizable deductions that may help reduce the amount you’ll owe.

Mortgage interest, property taxes and mortgage insurance premiums are just some of the deductions you can take if you have a mortgage on your home. Together, they can add up to thousands of dollars in savings on your tax bill.

Mortgage interest

Home mortgages are structured so that a huge chunk of each payment you make in the initial years of ownership goes toward paying down the interest on your loan and only a little goes toward the principal. The good news is that you can deduct the interest payments on your primary (and sometimes a secondary) residence — up to $1 million (or $500,000 if you’re married and filing separately).

Most homeowners count this as one of the largest deductions on their tax bill each year. It applies to home purchases and mortgage refinances, home equity lines of credit and home equity loans, sometimes called second mortgages. The deductible interest on home equity debt — regardless of how you used the money you pulled out — applies to loans of $100,000 or less throughout the year (or $50,000 if you are married and filing separately).
This deduction, filed with IRS Form 1098, can add up to thousands of dollars for most homeowners. The benefit: It reduces your taxable income so you don’t owe as much come tax time.

The key to taking advantage of the mortgage interest deduction is itemizing your deductions in meticulous detail, Poulos says. Your lender will send you a statement each year to let you know how much interest you paid; that will help you figure out if it’s worth your while to itemize.

Points

If you bought a home in 2015, there’s another deduction (score!) you get to include on your tax bill: mortgage points. Most borrowers pay for points, which come in two forms: discount points, which allow you to prepay some of your loan interest in exchange for a better mortgage rate; and the loan origination fee. One point is equal to 1% of your loan amount. Many homeowners completely overlook this deduction, Poulos says.
Let’s say you bought a home in New York using a $500,000 loan with a 1% origination fee. That’s $5,000 you can itemize as a deduction on your tax bill, and you want to get credit for each and every dollar you spent.

Your lender should provide you with a copy of your settlement statement, with the loan origination fee and discount points listed on it, in January. If you don’t receive a copy, ask for one and verify that this information is listed on it so you can take advantage of the deduction on Form 1098.

Property taxes

Another perk of homeownership is writing off your annual property taxes. You get to deduct these taxes in the year they’re paid, not the year they were due.

Your county’s property assessor’s office typically sends out a statement at the beginning of the year showing the amount of your property taxes. One more thing to keep in mind: If you bought a home and reimbursed the sellers for taxes they had already paid for the year, you’ll see that reflected on your settlement statement, not on your 1098.

Mortgage insurance

If your down payment was less than 20% of your home’s purchase price, you’re likely paying a mortgage insurance premium. Through the end of 2016, the mortgage insurance premium deduction includes policies provided by the Department of Veterans Affairs, the Federal Housing Administration and the Rural Housing Service, as well as private mortgage insurance from conventional lenders, issued after 2006.

The IRS treats your mortgage insurance premium payment as mortgage interest that you can deduct on Schedule A of Form 1040. Although the overall amount of your premium can be counted as an interest deduction, it phases out for high-income earners, Poulos says. For instance, you can’t deduct your mortgage insurance premium if you earn an adjusted gross income of more than $109,000 (or more than $54,500 for married couples filing separately).

Items you can’t deduct

Sure, you get some pretty sweet deductions as a member of the homeowners club, but there are some exceptions. Here are a few real-estate-related costs you can’t deduct:

Home and title insurance coverage (other than mortgage insurance premiums)
Depreciation
Utilities, such as gas, electricity and water
Most settlement costs (other than points)
Forfeited deposits, down payments or earnest money
Home improvements paid via a private loan, cash or credit card
Homeowners association fees
Transfer taxes (stamp taxes) in a personal home sale

Check out the IRS list of special situations and other nondeductible items related to homeownership.

Bottom line

One of the major benefits of owning your home has always been the tax write-offs that come with the package. Keep in mind, though, that if your itemized deductions don’t add up to as much as the standard deduction you’re eligible for, the standard deduction would be the better way to go.

If you have a complicated tax situation or you’re unsure about certain real-estate-related deductions, it’s a good idea to consult with a licensed tax professional for guidance. You don’t want to miss out on deductions that will lower your tax burden and keep more money in your pocket.

Homeownership can have some pain points along the way, but the tax benefits you reap help make the largest investment of your life pay off in the long run.

*This article has been edited. Original article appears on NerdWallet

Ridgefield Market Report : Year In Review 2015

Staying The Course

When reviewing the 2015 sales results, one can interpret that the real estate market is flat when compared to 2014. I think that is an accurate statement, but it is also safe to say that we are staying the course when it comes to market stabilization, avoiding the large swings in value or unit sales seen in previous years. Essentially, Ridgefield real estate sales showed 100 more homes sold than in 2009, and only 9 less than in 2014. In both 2014 and 2015 we did not experience a traditional spring market surge, partly due to the severe and extended winter weather, and consumer confidence still seems to be the driver in bringing buyers to the market. Observationally, when analyzing sales by price point, the typically consistent $1.5- $1.75 million struggled in 2015. Conversely, we had a nice uptick in the $2 million and higher category.

The Power Of Proper Pricing

Pricing your home properly from the start is one of the key factors in achieving the best possible outcome for sale. Buyers are savvy and intuitive and can easily determine if they need to act quickly or wait to see if a price adjustment is imminent. We are not seeing many low ball offers, therefore do not feel like you need to build in a cushion. An equally important factor is making sure that your home is “turn-key”. Focus on a few important rooms. For example, if you are a few years away from listing your home for sale and feel that your kitchen is in need of some updating – don’t wait! If at all possible – do the updates now, and enjoy living with them until you are ready to sell.

No Longer A Wild Ride

Since 2013, the Ridgefield real estate market has been steady in both price and unit sales. Fairfield County as a whole has experienced that same stability. Moving into 2016, I see a trend of increasing consumer confidence that real estate is once again a stable investment.

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Ridgefield Market Report : Mid-Year Review 2015

Putting Things Into Perspective

Nationally, as a result of improved consumer confidence, unit home sales are up nearly 10% when compared to the first six months of 2014. Fairfield County overall is up 9% during the same period. Although Ridgefield sales results are lower than 2014, this can again be attributed to the long and treacherous winter. The eight week loss of valuable market time in the typically brisk Spring selling season certainly impacts our mid-year results. However, there still is time to meet – and possibly surpass – 2014 sales, as the second half of the year outperformed the first half in both 2013 and 2014. The looming threat of rising interest rates should also bring more buyers to the table this fall and banks have begun to loosen their financing practices, which also makes the outlook more positive. The Luxury Market, which can be realized as $1.5 million and higher, is on target with 2014 in terms of unit sales, but has experienced a slight drop in value due to higher inventory levels. In-town and walk-to- town locations continue to be particularly popular, and tend to sell more quickly and at a higher price per square foot.

The Value Factor

Based on the Months Supply Of Inventory, 2015 seems to indicate that the market is slowing. However, this is not necessarily accurate as there have been many examples this year, across a number of price points, where multiple offer situations existed. As the market continues to be driven by value, proper pricing is critical. Today’s buyers also measure value based on the condition of the home and are responding most positively to homes that are updated and in pristine condition. When examining the inventory, there seems to be a discrepancy between the amount and the quality of the inventory. Buyers are ready to purchase, but they are still in the driver’s seat and want homes that are turn-key, almost without exception.

Looking Ahead

With no housing bubble in sight, we can expect moderate, sustainable sales growth. If you are in the market for a change, there’s no better time to buy up. If you are thinking of selling now or in the not too distant future, take the time to get your home ready for market or to just enjoy.

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Ridgefield Schools Top Ranking Lists

Once again, the Ridgefield Public School system has proven to be one of the best in Connecticut, with the district’s high school earning a Gold Badge from U.S. News & World Report—the highest award possible. Another organization that ranks education systems, Niche, ranked Ridgefield High School as the 6th best in the state. The elementary and middle schools ranked similarly well: both middle schools are in Connecticut’s top 10 list, and all the elementary schools are in the top 30. Overall, the district was ranked the fourth best in Connecticut.

Ridgefield’s education system holds up on a national scale as well. Out of 8,738 school districts, Ridgefield was ranked 79th on Niche, putting it in the top 1% of districts nationally. On U.S. News & World Report, the high school was ranked #413 nationally out of 29,070 public schools.

Even more impressive, U.S. News & World Report says Ridgefield High School has one of the top 50 science, technology, engineering, and mathematics (STEM) programs in the nation. Workers in these fields are in high demand, with higher average salaries than non-STEM majors; this makes the Ridgefield school system a good investment in terms of getting a job later on in life.

The top rated Connecticut district was New Canaan. Eight of the top ten school districts in the state were from Fairfield county, including Ridgefield, New Canaan, Westport, Darien, Wilton, Weston, Greenwich, and Newtown. The top public high school in Connecticut was in Weston, while the best middle and elementary schools were both in New Canaan.

As Benjamin Franklin said, “An investment in knowledge pays the best interest.” Homes in areas with good education systems are lucrative, with 90% of homebuyers saying that school boundaries are a top concern when buying a home. Purchasing a house in an area with a good education system may equate to a higher selling price later down the line.

If you’re interested in moving to Ridgefield, sign up to receive the latest new home listings delivered right to your inbox, or contact me to see how I can work with you to find you a great home in Connecticut’s Number 1 ranked town.

Housing Market Is The Strongest In Years

According to the National Association of Realtors, a newly unveiled forward-looking housing index by Nationwide says the U.S. housing market is at its healthiest level since 2001. The Health of Housing Markets Report will analyze the housing health outlook on a quarterly basis throughout 373 metro areas.

The index’s current leading indicator score for the fourth quarter of 2014, was 109.8, the highest level in the 15 years of data already examined by the study’s authors. A reading of more than 100 suggests the national housing market is healthy and shows few signs of a housing downturn over the next year.

The healthiest housing markets in the country are Pittsburgh, Cleveland, and Philadelphia, according to the index. The report considers employment, demographics, the mortgage market, and house prices to determine the health of each market.

“The HoHM Report provides a look into the future instead of the rear view mirror,” says David Berson, Nationwide’s chief economist and senior vice president. “The quarterly report should serve as a resource to gauge how healthy housing markets are today but, perhaps more important, what to expect in the future and why.”

This week, the National Association of REALTORS® reported that its forward-looking index, which is based on signed housing contracts, showed pending home sales at the highest level since June 2013.

Our local housing market seems to be continuing this trend with healthy sales through February and March as compared to the same time last year. Buyers are out in force at most price points, and inventory is still relatively low. With mortgage rates also continuing to remain low, I expect the spring season to continue with strong sales. If you are thinking of putting your home on the market, now is a great time to sell. Buyers are ready – and we’re seeing more instances of multiple offer situations when homes that are in good condition and are priced well hit the market.

For more information about what your home’s worth, contact me today at 203-856-5534 or karla@karlamurtaugh.com

Ridgefield Market Report : Year in Review 2014

Holding Our Own

Diverse weather conditions delayed the 2014 Spring Market nearly 8 weeks, which was extremely difficult to recapture. Even though our unit sales volume fell short 14.7% when compared to the record 2013 sales levels, I feel we were able to protect much of the gains made. This forward movement also seems to be continuing as we enter the 2015 Spring Market. We must remind ourselves that 2014 posted the second best sales figures seen in Ridgefield over the past seven years.

Despite the decline in units, we experienced an increase of 1.8% in Median Sales Price, which supports our prediction for slow, steady growth going forward. This slight up-tick also suggests that there are more buyers in the market at higher price points.

Great Expectations

2014 proved that the market continues to be driven by value, therefore proper pricing is critical. Today’s buyer also measures value based on the condition of the home. Buyers respond most positively to homes that have been updated and are in pristine condition. The foundation of Real Estate is built upon the principle of “supply and demand.” There have been many examples this year, across a number of price points, demonstrating that when a home is in absolute turn-key condition, recently updated, and in a desirable location, multiple offers can be expected. Close-to-town properties continue to be particularly popular and tend to sell more quickly and at a higher price per square foot.

Positive Outlook

With increasing consumer confidence and strong financial indicators, I am optimistic that 2015 will continue the trend towards market stability and increased values. The recent dip in mortgage rates should bring more buyers into the market, especially as banks start to loosen credit and offer more programs for well qualified people.

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