This is a guest post from Michael Traum of MikesCorner. Michael is a Real Estate Professional with Re/Max Heritage and has more than a decade of experience in the Fairfield real estate market. You can also follow Michael on Twitter
It appears that housing prices in Fairfield have climbed over the first three quarters of last year from a mean average of $520,000 up to $552,000 for 2011. The number of units is down from 478 to 422 year-to-date.
It’s been a see-saw decade for Fairfield housing prices. People are always asking me if we’re at the bottom? “If I purchase today, am I at the absolute bottom?” Easy answer….”I don’t know”. What do I know? Interest rates are definitely bouncing off of the bottom. I am refinancing my home and my broker was eager to tell me I was his first refi. I’m pretty sure he did a few more and at somewhere in the 3.875% or less range. No mortgage broker I know can remember rates this low. It’s a great time to refi.
Now, back to home values. Here are the facts, as per the local MLS, of the mean average price of single family homes in Fairfield sold in 1st three quarters since 2002 excluding the $2,000,000+ houses which tend to skew the market.
Looking at the chart below, perhaps you can tell me, where was the bottom? It looks like the fewest homes sold in 2009 and the recent average price of $518,000 last year were both the lows after the highs. What’s interesting is that the prices have climbed in 2011 but the numbers have dropped.
Remember, there is no ‘national housing market’. Real estate markets are local and cyclical. Fairfield and its surrounding bedroom communities to NYC have their fair share of short sales and foreclosures and prices and sales are certainly being affected, however, not to the extent of other areas without the anchor of NYC.
From 2002-2005, much of the buying and selling in Fairfield were people who were staying local but up-sizing to their dream home (perhaps) while cashing out on the equity they may have built in their current house during the past few years. The numbers appear to show that after 2006 this became harder to do and pretty much completely stopped in 2008. Who’s selling now? Three categories mainly. Those who must sell due to new and constricting financial or personal situations, seniors who choose to change their lifestyle, and families relocating out of the area make up the bulk of sellers today.
Who’s buying? That’s a bit more complicated, however, it appears that with lower prices, the American dream of home ownership is able to be realized by more of the population. Those who have saved and have steady jobs for quite some time but who couldn’t afford the inflated prices along with interest rates in the 6% range are starting to realize their purchasing power. Today, it costs approximately $1900 to borrow $400,000 where as the cost was around $2500 to borrow the same a couple of years ago. At the current rate, the prospects of purchasing one of the roughly 130 under $450,000 homes listed for sale in Fairfield somewhat more attainable.
It appears that for now, if you have the income and the credit, you should be able to purchase a home at steeply discounted prices and discounted rates.
Recent Comments