Single Family Home Sales In Riverside CT On The Rise.

Here's a look at the market for single family homes in the Riverside School district geography so far this year compared to the same period a year ago:

* Home sales are up 25% in 2017.

* Median prices are down more than 12% at $1.88 million.

* The $1m-$3m range is seeing nice gains in homes sold.

* Inventory is up 35%.

* Pending deals are up 12.5% with a multitude of activity in the $1m-$2m & $3m-$4m ranges.

* On average, homes are selling at $684 per square foot.

* Homes are selling for 95% of listing price and 91% or original list price, on average.

* Average DOM here is 163.

If you're planning to sell now is the time to list on the GMLS. Bidding wars are back due to pent up demand and buyers are eager to find the right home. 

Builder Confidence Is On The Rise

The Spring market is right around the corner.

New construction is in demand.

In many areas of the country, there are not enough homes for sale to satisfy the number of buyers looking to purchase their dream homes. Experts have long proposed that a ramp-up in new, single-family home construction would be one of the many ways to overcome this inventory shortage.

According to a recent survey conducted by the National Association of Home Builders (NAHB) and Wells Fargo, housing market confidence amongst builders reached an 11-year high last month.

What Does High Confidence Mean for the Housing Market?

In a recent interview, Rob Dietz, Chief Economist and SVP for NAHB, put it this way:

“Higher market confidence will translate into more building and more inventory in 2017. We expect single-family construction to grow 10 percent next year.”

With 2016 marking the best year in real estate sales in over a decade, a 10 percent ramp-up in single-family construction will only aid in making 2017 an even greater year.

According to the latest US Census data, sales of newly constructed homes were up 3.7% over January 2016 as they reached a seasonally adjusted annual rate of 555,000. Dietz went on to comment:

“We can expect further growth in new home sales throughout the year, spurred on by employment gains and a rise in household formations. As the supply of existing homes remains tight, more consumers will turn to new construction.”

Bottom Line

With the weather and the real estate market heating up this spring, there will be a surge of new construction coming to the market soon.

Greenwich Single Family Sales In January 2017 Compared To 2016

* Home sales JUMPED 45% in January (42 units closed vs. 29 a year ago)

* Home prices ROSE 5% to a median price of $1,762,500.

* In the $1m-$2m price range 20 units closed in January vs. 7 a year ago - a 185% increase!

* Inventory is DOWN modestly with 453 homes actively listed in Greenwich today.

* Pendings are UP 4.6% compared to a year ago w/ positive activity across numerous price ranges.

* Days on Market (DOM) expanded to 238 in January from 169 in January 2016.

* Sold Price to Original List Price Ratio remained steady at about 88%.

Buyers are out looking for homes now. If you want to sell and are not currently listed you are missing the market.

Pricing is key as DOM (days on market) shows a higher sales price in a shorter time frame than having to do a price reduction which greatly increases the DOM and ultimately sells for less.

Will Housing Affordability Be A Challenge In 2017?

Some industry experts are saying that the housing market may be heading for a slowdown in 2017 based on rising home prices and a jump in mortgage interest rates. One of the data points they use is the Housing Affordability Index, as reported by the National Association of Realtors (NAR).

Here is how NAR defines the index:

“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.”

Basically, a value of 100 means a family earning the median income earns enough to qualify for a mortgage on a median-priced home, based on the price and mortgage interest rates at the time. Anything above 100 means the family has more than enough to qualify.

The higher the index, the easier it is to afford a home.

Why the concern?

The index has been declining over the last several years as home values increased. Some are concerned that too many buyers could be priced out of the market.

But, wait a minute…

Though the index skyrocketed from 2009 through 2013, we must realize during that time the housing crisis left the market with an overabundance of housing inventory with as many as one out of three listings being a distressed property (foreclosure or short sale). All prices dropped dramatically and distressed properties sold at major discounts. Then, mortgage rates fell like a rock.

The market is recovering, and values are coming back nicely. That has caused the index to fall.

However, let’s remove the crisis years and look at the current index as compared to the index from 1990 – 2008:

We can see that, even though prices have increased, mortgage rates are still lower than historical averages and have put the index in a better position than every year for the nineteen years before the crash.

Bottom Line

The Housing Affordability Index is in great shape and should not be seen as a challenge to the real estate market’s continued recovery

If Your House Hasn't Sold It's Most Likely Because Of The Price.

105 Old Kings Highway South Darien For Sale

The residential housing market has been hot. Home sales have bounced back solidly and are now at their second highest pace since February 2007. Demand has remained strong throughout the winter as many real estate professionals are reporting bidding wars with many homes selling above listing price. What about your house?

If your house hasn’t sold, it is probably because of the price.

If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prospective buyers that will even see your house. See chart below.

Bottom Line

The housing market is hot. If you are not seeing the results you want, sit down with your agent and revisit the pricing conversation.

Inadequate Inventory Is Driving Prices Up

       The latest Existing Home Sales Report from the National Association of Realtors (NAR) revealed a direct correlation between a lack of inventory and rising prices.

We are all familiar with the concept of supply and demand. As the demand for an item increases the supply of that same item goes down, driving prices up.

Year-over-year inventory levels have dropped each of the last 18 months, as inventory now stands at a 4.0-month supply, well below the 6.0-month supply needed for a ‘normal’ market.

The median price of homes sold in November (the latest data available) was $234,900, up 6.8% from last year and marking the 57th consecutive month with year-over-year gains.

NAR’s Chief Economist, Lawrence Yun had this to say:

"Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017. Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country."

But there is good news about rising prices. More and more homeowners are recovering from a negative equity situation and learning that they are able to sell their homes and either move up to their dream home or downsize to a property that will better suit their needs. Look for these homes to come to market soon.

Bottom Line

Buyer demand continues to outpace the supply of homes for sale. Listing your home in the winter attracts serious buyers who are looking to close the transaction quickly