Hurricane-blizzard Nemo, the second 'biblical' weather event to hit us within a short time frame, has caused another lull in the local housing markets. But has it really dampened this year's market compared to last year? Are we still a buyer's market, or are the scales tipping in favor of sellers? Read on to find out! I've looked at the data and prepared this 'housing market update post-storm 2013, Westport, Fairfield & Weston Connecticut' to answer these questions for you.
In Favor of Sellers
There are a number of indicators that mean good news for sellers- low inventory, lots of offers, low interest rates and a strong average sale-to-list price ratio.
Low inventory- The number of homes for sale dropped significantly from last January to this January. There were 14% fewer homes on the market this year in Weston compared to last year and 26% fewer in Fairfield. This equates to 165 fewer homes for sale this January among the three towns. The shortage of homes for sale was not matched by a shortage of buyers however, so this meant more buyers for each listing.
Lots of offers- As a result, the number of accepted offers (binders) surged this January. The percentage of active listings with binders was 5-10% in Westport, Weston and Fairfield last year at this time. But binders jumped to 12-13% this year in all three towns! Contracts were also way up, almost doubling in Westport with 22 last January and 43 this year.
Low interest rates- Although the lending environment was quite challenging with stricter regulations, the interest rates remained extremely low and encouraged buyers to shop and make offers. When homes were priced in line with recent comparable sales, appraisals matched the sale price and transactions were successful. Low rates also enabled a larger pool of buyers to afford the homes for sale.
Strong sale/list price ratio- For sellers pricing their property in accordance with the current market, sale prices remained close to asking. Sale prices averaged 95% of list with some homes going for full price or more while many of these sellers enjoyed multiple offers and fast sales. Five homes in Fairfield sold at or above the asking price in January.
111 Mill Hill Rd, List: $325,000 Sale: $333,500
133 Arbor Dr, List: $349,900 Sale: $365,130
2698 Easton Tpk, List: $369,900 Sale: $370,000
29 Flora Blvd, List: $559,000 Sale: $562,000
30 Carroll St, List: $1,030,000 Sale: $1,030,000
In Favor of Buyers
Lowest interest rates ever- Buyers continued to capitalize on low prices and the absolute lowest interest rates in history . Those prepared to act quickly and step up to the plate on price experienced a successful purchase and the joy of a new home. Others remained out there looking and awaiting the home of their dreams to hit the market.
So if you are looking to buy, keep looking! More homes are being listed for sale each day. Contact me via the information below to help you find the perfect home. For a mortgage pre-approval with a top-notch lender, reach out to Mark Hawkins at William Raveis Mortgage. Raveis Mortgage is currently averaging an unbeatable 33 days commitment time from submission, and Mark will be happy to assist you.
And if you are thinking of selling your house, now is the time to get it on the market while your competition is low, shoppers are poised to buy and interest rates are offering you the largest pool of buyers for your price. Feel free to give me a call for a complementary pricing analysis for your home and any other market questions you may have.
Linda Raymond, Realtor Licensed in Connecticut
William Raveis Real Estate Mortgage & Insurance
203-912-4440
Linda.Raymond@raveis.com
Mark Hawkins, Executive Mortgage Banker
William Raveis Real Estate Mortgage & Insurance
203-255-6841
Mark.Hawkins@raveis.com
