Oct. 17, 2008 - Looking for Bright Spots - September 2008 Market Update

What Happened in September?

Well, if August was vacation month, then everyone must have spent September focused on getting back to school and work.  Home sales slowed again this month, with both overall the Median Sale Price and the number of Homes Sold in the County going down over August.  But, that's part of the normal sales cycle for our local Real Estate Market.  September is always a slow down after the Summer market, so it's not too worrying.

Here are the overall statistics:

Single Family Home Sales Statistics

 September 2007 - All of Fairfield County
Median Sales Price: $527,000
# of Homes Sold: 549
Average Time on Market: 99 days

Some Good News - Inventory & Absorption Rates

The good news is that the average number of homes sold per month (absorption rate) remained almost level with an average of 463 homes sold per month through September, versus 465 homes sold per month through the end of August.  The rate is 29% lower than the number of homes sold per month for the first 9 months of 2007, which has been the trend most of this year.  However, in 2007 the drop in number of homes sold from August to September was 3% and this year it stayed steady, which is a good sign.

On the Inventory side, the number of homes actively for sale has remained almost level as well, with 5,463 homes currently for sale.  That's still almost 12 months of inventory, which means we're in a strong buyers' market.

Should You Stay or Should You Go?

All of the bad news in the media can make even the most optimistic person worry about whether or not now is a good time to buy or sell a home.  It really depends on many factors that are unique to each individual or family, such as:

• Do you have to (or want to) move right now?
• Are you in a stable job with stable income?
• How is your credit history?
• Do you have other debts (car loans, credit cards, etc.) that you can pay off first?
• Do you plan to stay in your next home for at least 3 years?

If the answers to most of those questions are positive, then you're likely a good candidate to buy a home, especially if you're currently renting.  Bargains are everywhere and buyers are snapping them up, which is why the median sales prices keeping going down in many towns. 

On the selling side, if you have:

• A desire (or need) to move (to downsize, buy a larger home or go to a different town or state)
• Enough equity in your home to be flexible about your sales price AND
• Your home will sell for at or below the median sales price for your town

Then you should seriously think about selling now.  You may get less for your current home than you would have in the past, but you'll also pay less for the house that you're buying so you're coming out ahead of the game.

Finally, if you're thinking about investing in Real Estate, now might be the right time to jump in and buy your first property.  There's a real need for rental properties (condos, apartments & houses) because of the people who can no longer qualify for a mortgage or have lost their homes due to foreclosure (theirs or their landlords).  You can buy the properties at much lower prices now and the mortgage rates for investment properties are still low.  But be warned - you need to have enough financial reserves to be able to cover all of the expenses on the rental property, and any unexpected maintenance, before buying the property.  Not only will many banks want to see that you have funds available before they give you a mortgage, but you'll have piece of mind knowing that if a tenant fails to pay rent or your property is vacant for any period of time, it won't be a burden on you financially.

As always, if you're thinking about buying or selling a home or just want to keep an eye on the market, feel free to call me at 203-952-4899; email me at Marcie@BersonTeam.com; or post your comments here on my blog.  It's my pleasure to help you any way I can.

Town by Town Single Family Home Sales Statistics

Town	Median Sale Price	# of Units Sold	Average Days on Market	Median Sale Price  Sept '07	% Change in Median Price over Sept '07
Bethel	$435,000	9	124	$395,000	10%
Bridgeport	$197,024	41	98	$250,000	-21%
Brookfield	$405,000	15	88	$440,500	-8%
Danbury	$307,500	34	80	$335,000	-8%
Darien	$828,500	9	93	$1,287,500	-36%
Easton	$712,500	8	167	$881,000	-19%
Fairfield	$595,000	61	111	$756,350	-21%
Greenwich	$984,999	7	167	$1,686,250	-42%
Monroe	$350,000	11	95	$425,000	-18%
New Canaan	$1,305,000	12	143	$1,225,000	7%
New Fairfield	$324,000	13	102	$480,000	-33%
Newtown	$587,500	20	116	$340,000	73%
Norwalk	$472,500	32	98	$550,000	-14%
Redding	$732,500	8	145	$657,300	11%
Ridgefield	$710,000	15	85	$813,500	-13%
Shelton	$415,000	15	94	$364,000	14%
Sherman	$565,000	1	155	$411,500	37%
Stamford	$577,500	28	101	$721,500	-20%
Stratford	$265,000	27	99	$278,700	-5%
Trumbull	$392,000	21	79	$443,750	-12%
Weston	$655,000	6	80	$1,100,000	-40%
Westport	$1,500,000	23	84	$1,576,250	-5%
Wilton	$674,000	14	159	$822,500	-18%

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 10/10/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.

Sep. 10, 2008 - Market on Vacation - August 2008 Real Estate Market Update

It seems like the local Real Estate Market decided to go on vacation in August.  Home sales for the month were slower than July and the average sales price dropped a bit below where it was in June.  This isn't unusual for the end of the Summer since so many people plan their moves around the school year and many local schools started before Labor Day this year.  Despite the overall drop in the market there were some towns that had increases in sales prices last month (indicated in blue in the table below).  Here are the overall statistics:

Single Family Home Sales Statistics

 August 2007 - All of Fairfield County
Median Sales Price: $580,000
# of Homes Sold: 912
Average Time on Market: 93 days

Is the Market Starting to Level Off?

The number of homes sold per month (absorption rate) went up to an average of 465 for the year-to-date.  It's still much lower than the first 8 months of 2007 when the average was 674 homes per month.  But it's a good indicator that the local housing market is still following a fairly normal sales pattern with sales increasing through the Summer.

Overall inventory is also down from last month with 5,432 homes actively for sale in the County.  At the current absorption rate, that translates to almost 12 months of inventory, so it's still a Buyers' Market, but there's1 month less of inventory than in July.

What Does This Mean for You?

Fall and Winter are typically slow home buying seasons, so if you are thinking about buying a home, it would be a good time to think about making your move.  You'll still have plenty of homes on the market to see and there will be less competition from other buyers.  Also the Mortgage Rates have started to go down again since the government "take-over" of Fannie Mae and Freddie Mac, making loans more affordable and more loans available.  Lending criteria is still very strict so be sure to talk to a trusted mortgage adviser to be sure that you can qualify for the type and amount of loan you want before you fall in love with a new home.

Town by Town Single Family Home Sales Statistics

Town	Median Sale Price	# of Units Sold	Average Days on Market	Median Sale Price Aug '07	% Change in Median Price over Aug '07
Bethel	$396,000	18	109	$379,000	+4.5%
Bridgeport	$200,000	41	89	$259,500	-22.9%
Brookfield	$427,000	25	117	$514,500	-17.0%
Danbury	$350,000	35	87	$359,000	-2.5%
Darien	$1,040,000	21	118	$1,400,000	-25.7%
Easton	$955,000	6	194	$755,500	+26.4%
Fairfield	$657,500	70	106	$595,000	+10.5%
Greenwich	$1,262,500	8	104	$1,940,000	-34.9%
Monroe	$365,000	10	83	$438,750	-16.8%
New Canaan	$2,075,000	29	140	$1,725,000	+20.3%
New Fairfield	$385,000	15	107	$411,750	-6.5%
Newtown	$458,750	32	81	$560,000	-18.0%
Norwalk	$523,500	52	107	$489,250	+7.0%
Redding	$587,000	7	208	$877,500	-33.1%
Ridgefield	$649,000	24	97	$860,000	-24.5%
Shelton	$370,000	37	98	$368,000	+0.5%
Sherman	$767,500	2	315	$950,000	-19.2%
Stamford	$672,500	60	84	$680,000	-1.1%
Stratford	$266,250	36	93	$319,500	-16.7%
Trumbull	$425,000	29	84	$475,000	-10.5%
Weston	$1,020,000	18	117	$1,000,000	+2.0%
Westport	$1,455,000	40	100	$1,428,750	+1.8%
Wilton	$902,000	22	108	$866,050	+4.1%

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 9/09/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.

Aug. 5, 2008 - Finally, Some Good News - July 2008 Market Update

July was a good month for home sales here in Fairfield County.  The Median Sales price is up 10% over June and 2% (basically stable) over July 2007.  More importantly, the number of homes sold was almost 100 more than last month and only 14% lower than the number sold in July 2007, which is much better than last month's statistics.  Here are the overall statistics:

Single Family Home Sales Statistics

July 2008 - All of Fairfield County*
Median Sales Price: $612,500
# of Homes Sold: 728
Average Time on Market: 96 days

July 2007 - All of Fairfield County
Median Sales Price: $600,000
# of Homes Sold: 831
Average Time on Market: 92 days

It's Still A Buyer's Market

The average number of homes sold per month (absorption rate) so far this year is 448, which is up from last month.  Right now there are 5,640 homes actively for sale in the County which translates to about 13 months of inventory based on the current absorption rate.  Things are looking up for home sellers, but we're still firmly in a Buyer's Market.

What Does This Mean for You?

If you're a home seller, there's a light at the end of the tunnel.  Price your home correctly (ask your Realtor for advice on how to price your home competitively) and the right buyer will hopefully come along soon.  If you really need to sell now, price your home as low as you can handle it - the bargain hunters are out there and you'll get their attention.

If you're ready to buy a home, it might be time to get serious.  While I don't expect any drastic rise in home prices any time soon, the market looks like it's starting to level off.  There will continue to be more foreclosures coming on the market, especially early next year when a large number of adjustable rate mortgages are ready to reset, which will have an effect on the overall market and might bring some good deals for buyers (but do your homework before considering a foreclosed home).  If you can wait until after Labor Day, you'll be at a bit of advantage because there are usually less buyers shopping in the Fall and Winter and sellers who really need to move will be more willing to make a deal.  Of course, if you really need to buy something now, you'll still be able to get a good deal, as long as you do your homework (or work with a Realtor who will do the homework for you).  Happy House Hunting! 

Town by Town Single Family Home Sales Statistics

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 8/05/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.

Jul. 14, 2008 - June 2008 Market Update for Fairfield County

When you're thinking of buying or selling a home, you want to keep an eye on where the real estate market is going.  To keep you informed, I'll be publishing statistics on the Fairfield County real estate market each month and identify any trends in the local market that could affect your buying or selling decision.

Single Family Home Sales Statistics

June 2008 - All of Fairfield County*
Median Sales Price: $550,000
# of Homes Sold: 638
Average Time on Market: 101 days

June 2007 - All of Fairfield County
Median Sales Price: $606,250
# of Homes Sold: 1,002
Average Time on Market: 90 days

As the numbers clearly show, the overall Fairfield County market is not doing as well as it did in June 2007, but the news isn't all bad.  The overall Median Sales Price is down 9.3% and the number of homes sold is down by 36%, while the market time has increased by 11 days.  However, as you'll hear many REALTORS say, "All Real Estate is Local" and that's especially true for Fairfield County with the wide variety of towns and cities it encompasses. 

When you look at the towns individually, you see that 9 of the 23 towns have Median Home Sales Prices that have remained level or increased over the same period last year, which is good news.  And the overall Median Sales Price is 6% higher than it was last month.  To see how each town is doing, check out the chart at the end of this post.

Absorption Rate & Current Inventory

Looking at the Absorption Rate (average number of homes sold per month) and the current Inventory (number of homes actively for sale) is another way to determine which way the market is moving.  For the 1st half of this year, there have been an average of 414 houses sold each month (Absorption Rate) in Fairfield County.  As of today there are 5,751 houses for sale in the County, which means that based on the current Absorption Rate we have almost 14 months of inventory on the market.  Generally speaking it's a Buyer's Market when there is more than 6 months of inventory for sale.  So we're well within Buyer's Market territory.

What Does All of This Mean for the First-Time Buyer?

Well, if you've been contemplating buying your first home, but you've been waiting for the prices to drop more, you might not want to wait much longer.  For many of the towns in the County, the sales prices are starting to level off or even increase, which means that the market is getting back to a positive trend.  Inventory levels are also starting to level off or decrease, which means that homes are selling or sellers are considering staying put if they don't have to move.  Of course, there will continue to be more homeowners facing foreclosure as their adjustable rate mortgages increase over the next few months, so there will be more foreclosure or "distressed" properties coming on the market.  But the competition for those properties will be fierce and they don't always present a good value (more on that in a future post).  My best advice is that if your finances are in order and you're mentally ready to be a homeowner, then don't wait.  A home is a long-term investment and if you buy it at the right price for the property (and for you) you'll receive a solid return on your investment if you stay in the home for at least 5 years.  And don't forget - it's not just an investment, it's your home and the memories you make there will far outweigh any financial gains.

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 7/14/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.