Chief Economist for NAR (National Association of Realtors®) just gave a one-on-one interview with Chris Raveis for all William Raveis agents (early April 2023) , and he had some key takeaways.
💡The rates of sales should pick up as the year goes on.
💡New construction starts have risen for three consecutive months on a nationwide scale.
💡Mortgage rates have improved since last month.
💡The gap between the current rates and what many homeowners have now is narrowing.
💡His advice?
🏠Sellers: It doesn’t matter when you sell- if you sell high, you will buy high, and vice versa. So you should act based on your lifestyle needs.
🏡Buyers: The key is to get into the ownership ladder if you’re not already. You should also act based on your lifestyle needs, and if rates improve, refinance later.
I know many of you are thinking of making a move but may be hesitating due to uncertainty. Of course, no one has a crystal ball for the future, but the charts below and the What Sold Reports show what happened with single-family homes March 2023 in Fairfield and Westport Connecticut.
One thing we know is that the low inventory environment will not be changing anytime soon. Also of note in the following Fairfield and Westport graphs is that the months of supply peaked in June last year. So, if this year follows suit, June will be the time of highest competition for sellers and the most choice for buyers. Feel free to reach out to me for values in additional towns.
FAIRFIELD PRICES & INVENTORY
The median (midpoint) sale price was down 3.1% in March compared to March 2022 (first graph), however it has been increasing since January. This is likely the result of more smaller homes selling. The average price per square foot actually increased 12.9% (second graph)! Smaller homes tend to sell for more per square foot, and prices may be heading upward as well. Lastly, the inventory has remained incredibly low with only 1.8 months of supply (third graph). This low level is the same as last year at this time. A balanced market has 5-6 months of supply!
Fairfield Median Sale Price – March 2023 DOWN 3%
Fairfield Median Price Per Square Foot UP 14.2%
Fairfield Months of Supply 2.5 UP from 2.1 in March 2022
WESTPORT PRICES & INVENTORY
The median sale price was also down in Westport, by 18.5% from last March (first graph). But the sale price per square foot was up 4.9% suggesting price increases (second graph). The months of supply did improve by 3.8% since last month but still remains low at 2.7 months (third graph).
Westport Median Sale Price – March 2023 DOWN 18.5%
Westport Median Price Per Square Foot – March 2023 UP 4.9%
Westport Months of Supply – March 2023 UP 3.8%
Tight Inventory and Strong Buyer Demand Continued
We saw some opportunity for buyers to have a little more time, choice, and negotiating ability depending on the demand for the particular property. However, this leverage was only on a a case by case basis.
Due to the tight inventory, many homes still sold very quickly and with multiple offers.
Reach out to me anytime with your questions about the market and to talk about your plans. Not sure about your move yet? Please refer your friends to me using the form below.
I took a continuing ed course taught by Birgit Anich of BA Staging and Interiors last week. I have taken staging classes before, but I didn’t realize that such a strong positive psychological impact can be achieved when applying staging strategy and design techniques.
The goal of staging is to merchandise a property to position it most competitively for sale by eliciting strong positive emotion from those who enter the space.
When you walk into a home, you may feel nothing. You might even feel an aversion. Or your heart may skip a beat, and you experience a “chemistry”, a feeling of excitement, or joy.
We all make decisions based on emotion. We then back up our emotions with fact. Therefore, as a homeowner, when you prepare your house for sale, ensuring your buyers experience a “wow” as soon as they arrive and walk in should be part of your investment in achieving your top dollar sale.
When you put your house on the market, you want buyers to feel the love when they walk in.
Here are four guiding concepts:
Everything has a place and a purpose! If it doesn’t, take it out.
Curb appeal is key. This is the first impression. Every home needs a wow-factor, so incorporate something to evoke a positive emotion even before entering the home.
Everything the buyer sees tells a story, so make it the story you want to tell. For example, if closets are jam-packed, it tells the buyer there might not be enough storage. Closets should ideally be 70% full and arranged by color.
Create lifestyle moments. Create the idea of an “aspirational lifestyle”. An example of this is the big soaking tub. Most people never use them, but they love the idea of it when they see it! An alternative can be to have a big coffee table book open to a page showing a luxurious vacation spot or collectible cars.
What are some of the strategies?
Feature the features. Guide the eye toward what you want to showcase. Any custom elements should be featured such as a new kitchen. All assets should be featured, such as great views, fireplaces, and vaulted ceilings.
Make sure there’s no “wasted space”. Clearly define the use of all space and give it a purpose. Be sure to separate adult space from kids’ space.
Minimalize. Use a “less is more” approach.
Create “memory points”. For example, after seeing four homes, someone might say, “Yes, I remember that house. It’s the one with the pink cushions!”
Out with the old, in with the new. Refresh items and elements that give a dated or tired impression. For example, swapping out dated light fixtures can make a huge difference in the impression it makes!
Appeal to the senses. Clean and fresh is key. There is actually a special type of light bulb that can eliminate stubborn odors, such as from pets. Don’t over-do-it with strong scents from candles or oils. Lighting is important too. Be sure to avoid using bulbs with cool lighting.
Texture, color, placement, materials, metals, mirrors, vignettes, and ‘signs of life’ are just a few elements Birgit employs for her strategy. Here are some tricks of the trade!
Proper lighting wattage and color is important. Use warm lighting with 2700-3000 Kelvin in the living room. A bit cooler lighting in the kitchen is okay, 3000+ Kelvin.
Furniture placement is important. The heaviest piece of furniture should be on the wall opposite the entrance to the room. Make sure there is at least three feet clearance to walk around furniture, especially tables, but no more than four feet.
Use big area rugs to anchor furniture in a room and give it a connected, cohesive, luxurious look. For luxury spaces, have a big rug with all furnishings set completely on it. For more informal spaces, use a big rug with furnishings off-set or extending off the edges.
Coordinate colors.
Balance rooms with symmetry.
Group accessories in sets of three and five (odd numbers).
Repeat design themes throughout the home.
Use mirrors as a design element to reflect light, reflect pretty views opposite them, and let the buyers see themselves in the space!
Incorporate “signs of life“, like plants to add a warmth and an organic component to the space.
Add pops of color to make space memorable and help guide the focus to where you want it.
Set accessories on angles so they are not too predictable looking.
Create “special moments“. Use vignettes to suggest a moment in time and create a lifestyle feel. For example, you can display a decorative board game on a coffee table and have a couple of the pieces out in play as though people were just playing.
Mix metals. For example use a black metal with a gold metal to add interest and variation.
Add “plush” (textures). For example, add fur seat cushions or open a lively book to a specific page and put it on a desk or coffee table.
Use lighting to center the space.
In a gourmet kitchen, use lifestyle accessories.
In bedrooms, neutralize bedding with whites for a fresh clean impression.
Mix patterns and solids.
Use timeless glass.
I bet you can’t wait to try a few of these ideas in your own home! Here are some pictures to get the juices flowing. But if you are thinking about making a move and feel overwhelmed by everything you have do, don’t worry, there is ample help to guide the process and get you there. In fact, when it comes to repairs and staging, I even have a program that will take care of everything for you at no out of pocket cost until you close!
Are we going to face another “2008” after the the failure of Silicon Vally Bank (SVB)?
There are a number of key differences regarding the housing market, consumers, and the banking situation right now compared to that of 2008. Here are six.
Inventoryis low now, and it was not in 2008. The chart (right) from InfoSparks shows the longterm housing inventory trend and, specifically that here were 9 months of supply in February 2008 and 2 months of supply in February 2023!
New construction levelsare low now, almost half what they were in 2008. (see table below)
Mortgage delinquency is low now and it was not in 2008.
Foreclosure levels are minimal now, and they were not in 2008.
Subprime loans are virtually non-existent now, but they were prevalent in 2008.
Homeowner equity is high now, but was negative for many in 2008. (see CoreLogic statement below)
Now, the market, consumer credit scores, and homeowner equity are all much healthier than they were in 2008. Below is an additional summary of key variables from the National Association of Realtors.
What we do know is that home values appreciate in the longterm and have historically outpaced inflation.
What makes SVB different from the first bank that launched the domino downfall in 2008?
The Silicon Valley Bank is a fraction of the size of the other banks. For example, an article by Troy Palmquist published by Innman says that at the end of 2022, SVB had assets worth about $211 billion, whereas Bank of America had more than $3 trillion at that time. So the scope does not compare. Also, SVB and Signature Bank served a narrow niche within the banking sector compared to the majority of banks that are protected by being significantly more diversified. Most importantly, the most recent stress test implemented by the Federal Reserve demonstrated that major banks could survive both a deep recession and significant unemployment, neither of which are anticipated to be the case.
Should I commit to my plans and embrace the spring market?
Buying and selling your home is an emotional decision. But you now have some strong facts to support your move forward and an improved quality of life, especially if it’s a decision that’s taking you where you want to go! If you want to move forward with your plans, the graphs above show some longterm trends that can support your decision. Below are some resources to help put your plan into action.
How can I bridge the gap between buying and selling when “cash is king” and many markets are still very competitive for buyers?
In competitive markets such as Fairfield, Westport, Southport, and Rowayton, and Darien Connecticut as well as coveted vacation spots like Kennebunkport, Maine, there are still fast-paced sales and multiple-offer situations. Homes are still selling at or above the asking price, and many accepted offers are cash bids with no mortgage contingency.
William Raveis Real Estate offers solutions to get you where you want to go!
Raveis Purchase will enable you to unlock the equity in your current home and make a non-contingent offer on your new one.
Raveis CashBid will buy the home you want to sell and the home you want to buy so that you can accomplish an all-cash transaction and finance later.
So if you want to make a move and overcome some logistical challenges to doing so, reach out and let’s get the conversation started.
⛷️As we speak, two of my local clients are shopping for their perfect ski-on/ski-off condo in Vermont through our Raveis regional offices.
🛣️ My cousin and her husband in Massachusetts asked me to help them find an agent in Ohio to sell their mother-in-law’s home. Through our excellent relocation department and sophisticated global referral network, Leading Real Estate Companies of the World, I had two agents for them to interview by the end of the day. They are happily working with one of them right now.
🧐 I’m currently helping clients work through all their options for downsizing from their large home to a simpler lifestyle with lots of convenient activities and amenities. If they choose to go farther away, I have my network at my fingertips for them.
Most of my business is from repeat clients and referrals.
I joined William Raveis Real Estate, Mortgage and Insurance over 20 years ago because they are a privately held, family-owned company whose mission is to support its agents in ensuring maximum client satisfaction. This translates to an award-winning company that is an industry innovator with top marketshare in most of our service areas. With our global network, and Elite Concierge Services, we provide sellers with unprecedented local and global exposure and all our clients the tools and guidance they deserve through the entire moving process. So it makes sense that my clients are happy with my service, that they return to me when needed, and they refer me to their family and friends.
Less obvious, is the extended service reach we have to offer.
Whatever real estate aspirations you may have, I can help you and your local friends directly, or ensure you are in the best hands, wherever your plans may take you. I promise to oversee the process to ensure satisfaction! Take advantage of the deep resources I have for you, because referrals are a win-win.
➡️ Action: Take advantage of the deep resources I have for you, because referrals are a win-win.
📲 If a friend is looking for an excellent agent anywhere in Connecticut, nationwide, or overseas, you can ask them to call me. I will talk to them about their needs and connect them with a local expert from our regional William Raveis footprint or our world class global network, Leading Real Estate Companies of the World. This elite network includes only the top brokerages in each market place. I always oversee the relationship to ensure you or your friend is happy with their agent.
📧 You can share their contact information with me in the form below and offer them an initial quick home value estimate in the meantime.
Discover and share the confidence of having a referred and trusted agent.Your trust and loyalty drive my business. Let’s work together for a win-win with referrals! 💫 🏡
Get an in-home energy performance assessment for $50 and reduce energy loss, improve energy efficiency, and save 💰💰💰! Visit EnergizeCT.com or your electricity provider for more information or to request an assessment today. 👍🏻
They will arrange to have a team come and assess where you have air leaks in your home and help you to correct them on the spot.
First they will add a seal to your front door with a fan that will draw air from your home. This will get your baseline measurement of air leaks and help them pinpoint where they are.
Then they will make corrections throughout your home by caulking cracks in window sills, adding weather stripping around doors, inserting insulation behind outlets and light switches, and adding insulation to key spots like the pipes from your water heater. They will offer supplemental fixes that may be beyond the scope of the $50, but many of them, they are able to do on the spot if you opt for them,
Lastly, they will reassess the effectiveness of the fixes and provide you with an “after score” as well as a maximum efficiency score and what you can do to get there.
I know many of you are thinking of making a move but may be hesitating due to uncertainty. Here’s what’s happening in Fairfield and Westport, Connecticut. Reach out to me for values in additional towns.
Below is a comparison chart for Fairfield and Westport showing changes that favor buyers and sellers when comparing February 2022 vs February 2023 market stats. (March numbers will be out soon.)
FEBUARY 2023 MARKET HIGHLIGHTS
New Listings & Sales Volume: DOWN In Both Towns
New listings were down 27% in Fairfield and 49% in Westport which limited the sales volume. Unit sales were down 53% in Fairfield and 42% in Westport. Average days on the market also increased in both towns.
Price Per Square Foot: UP in Both Towns
Although the Fairfield median and average sale price metrics were down this February, the average sale price per square foot was up! When you look at what sold this February, you can see that more smaller homes sold (average square foot =1,741) and only one sale was above $1M compared to last year. In February 2022 the average size home that sold had 2,215 square feet, and there were seven sales between $1M and $3M. So it appears to be more about the mix of homes that sold that resulted in the appearance of prices decreasing in Fairfield.
In Westport, prices were up any way you look at it!
Tight Inventory and Strong Buyer Demand Continued
We have seen some opportunity for buyers to have a little more time, choice, and negotiating ability depending on the demand for the particular property. However, this leverage was spotty and remained only on a a case by case basis.
Due to the tight inventory, many homes still sold very quickly and with multiple offers.
So when you are buying, you want to to be prepared with a mortgage pre-approval or proof of funds so you can make an offer quickly when you see a home you want!
On a national note, the experts predicted that prices would remain relatively stable by the end of 2023 followed by continued appreciation beginning in 2024. So buyers in the current market may enjoy equity increases in the very near future!
Reach out to me anytime with your questions about the market and to talk about your plans. Not sure about your move yet? Please refer your friends to me using the form below.
But do you have roaming eyes for a better match? Maybe you feel like you’ve been spending time, money, and patience in a living situation that is not ideal. Making a big change may have its short-term challenges, but imagine the rewards of your future long -term pleasure. Those who have made it happen will tell you it’s well worth it, and this is as true for your old romance as it is for your home!
Your home is your place of comfort, peace, privacy, love, safety, work, growth, solace, rest, exercise, play, pride, and celebration. Your home is your castle! What is more important than that?
Fall in love with your home. Commit to it. The barriers to getting there will get resolved.
Changing homes is a monumental decision. It’s completely understandable that you may get sidelined by obstacles and hesitate for months, or even years, while settling for a subpar existence. But, if you agree that your long-term quality of life is “priceless”, it makes sense to reach this goal sooner rather than later.
“Marry the house! Date the rate!”
The new mantra speaks to the point that the home of your dreams is your commitment to your future, while interest rates are temporary like many other challenges people face when making a move.
There are financing options that help to offset rates in the short term. One is the “2-1 buy down” in which a seller can pay to reduce the buyer’s interest rate. It lowers the rate by 2% in the first year and 1% in the second year. After that, the buyer can refinance. If there is competition for the listing, and the seller is not likely to agree to a concession, another way to do it is to add the cost of the buy-down to your offer price so you can still get the lower rate.
Maybe you retired a while ago and have been dreaming for ages about downsizing, going to a more convenient in-town location, or moving out of state. But you’ve stayed put due to years of accumulated stuff and differed maintenance plus a huge emotional hill to climb before selling.
Ask vour realtor about a “refresh” service to do the heavy lifting for you. All the repairs, upgrades, decluttering, painting, and staging are managed and completed without you having to deal with it and with zero cash out of your pocket until closing!
You can focus on compiling and purging your sentimental items, reminiscing, and imagining your new future. Lean on your agent to guide you through the process and timing so that it is comfortable for you. You can sell your house for the most money and best terms and finally be on your way to the lifestyle you desire and deserve.
Perhaps you have an old summer home that was great when the kids were young, but it doesn’t see much action anymore, and it’s not even nearby. You don’t know how to go about getting it sold, and you’re worried about the capital gains tax you will owe.
Your agent can find you an excellent out-of-state agent and tell you about a 1031 Exchange to avoid the tax by putting the proceeds from your sale into a new investment property nearby.
Then you can rent it out for some passive income.
If you’re ready to love your lifestyle again, reach out to a real estate agent with strong online ratings, reviews, and presence for an initial conversation.
Your Realtor® is your marketing expert, professional guide, coach, problem solver, market specialist, technology expert, (many times, therapist!), and matchmaker!
When you’re ready to commit, your agent will help guide you to the perfect match, the new castle of your dreams!
It’s February, but March is Just Around the Corner!
The January numbers are in, so where do things appear to be going at the moment? I know many of you are thinking of making a move but may be hesitating due to uncertainty (see 3rd video below). I will keep you abreast of home values in Fairfield and Westport Connecticut each month here on the blog. Reach out to me for values in additional towns.
Since we are starting a New Year, I pulled the report showing 12 months ending in January compared to the same timeframe the previous year. Below is a comparison chart for Fairfield and Westport showing changes that favor buyers and sellers.
Home values were up.
The median and average sale prices were up as well as the average sale price per square foot in both towns compared to the 12 months ending in January 2021.
Inventory and new listings were down, putting upward pressure on prices. Homes sold on average for 102% of the list price, compared to 100% in the previous year.
In favor of buyers, unit sales and contracts were down. We have seen some opportunity for buyers to have a little more time, choice, and negotiating ability depending on the demand for the particular property. This leverage is very much on a case by case basis.
Due to the tight inventory, many homes are still selling very quickly with multiple offers. So buyers should be prepared with a mortgage pre-approval or proof of funds so they can make an offer quickly if they see a home that they like.
Below are my market comments for the last week in January and second and third weeks in February. (Click each image for the 60-second videos on Instagram). We saw an increase in new listings, but the accepted offers far exceeded this count! 🤷♀️ So we need new listings! 🏡 🏠 🏡
On a national note, the experts anticipate prices to remain relatively stable followed by continued appreciation beginning in 2024. So buyers in the current market may enjoy equity increases in the very near future!
Reach out to me anytime with your questions about the market and to talk about your plans. Not sure about your move yet? Please refer your friends to me using the form below.
Fairfield and Westport CT Real Estate Guide 