HOUSING MARKET: Sales dip a bit, prices still rise

Printed From Acorn-Online.com

Ridgefield Press
HOUSING MARKET: Sales dip a bit, prices still rise
Apr 18, 2006

The number of homes sold in Ridgefield in the first quarter dipped slightly this year, but as the accompanying chart shows sales activity in the first quarter is not far off the levels of recent years.
There was continued strong growth in the median sales price in the first quarter as it increased 9% compared to last year. Several closings of high-end properties boosted the average sale price increase to 8.5%.
The number of homes on the market continued to climb reaching 225 at the beginning of the month, giving buyers many choices in all price ranges.
The current market seems to be in a transition from a hot seller�s market to a normal, healthy one where fairly-priced, well-maintained homes are selling at higher prices.
Investor interest appears to be an important factor in the market, as several �fixer-uppers,� especially in the under $700,000 price range, have sold in the first quarter.
In the first three months of this year there were 53 closings of single family homes in Ridgefield, which is slightly below the 56 closings for the same period last year. Sales prices ranged from a low of $325,000 to a high of $4,250,000, compared to from $329,700 to $2,995,000 last year.

Prices continue to rise

Excluding the affect of the large estates on 2006 stats, both the median price and the average sales price have increased this year. The median sales price increased by 9% to $849,000 and the average sales price rose 8.5 % to $947,000.
Sales at the high end picked-up in March. There have now been four homes priced over $2 million to close so far this year, compared to only one in the first quarter last year.
In addition there are five homes in this price range under contract waiting to close.

Buyer�s market

The inventory of single-family homes on the market continues to rise as we enter the spring market and stood at 225 at the end of March compared to 134 at the same time last year, still 70% higher than last year.
Buyers now have a wide variety of choice in virtually all price categories. The average list price of the homes on the market is $1,236,000, which is 30% higher than the average sales price in March.
Twenty-four of the active listings are priced over $2 million.

Inflation fears

According to Freddie Mac�s Primary Mortgage Market Survey the 30-year fixed-rate mortgage (FRM) averaged 6.43 percent for the week ending April 6, 2006, up from an average of 6.24 percent a month ago. Last year at this time, the 30-year FRM averaged 5.93 percent.
Strong economic growth is putting upward pressure on mortgage rates. There is concern that the continued high level of energy cost may lead to inflation in other sectors of the economy. According to the Freddie Mac chief economist, �Fear of inflation leads to higher mortgage rates, like the ones we see this week.� Rates had been projected to rise by only one-quarter of a percentage point by year-end, but the increase could be greater now.
All data are obtained from the Consolidated Multiple Listing Service and are approximate and used to illustrate the trends.

Jack McAuley is a real estate agent with Keller Williams Realty with offices at 425 Main Street. He may be reached at 438-9119, www.CTreal-estate.com, or [email protected]