January 8, 2008
Fairfield Real Estate Yearend Update
Our local Real Estate market finished another solid if not spectacular year. Fairfield Single Family unit sales finished strong in 2007 with 766 homes sold. While the year wasn't a record setter, unit sales finished up 17% over 2006. And importantly, the Median Selling Price remained stable - up 1% over the prior year at $635,000. Fairfield and the surrounding towns are doing well amidst the turmoil in the national real estate markets.
While the Subprime Credit crunch has caused a big dip in certain markets nationwide, locally, it is the cities that have seen the major impact. In Bridgeport, for example, unit sales of Single Family homes finished down 34% from 2006 and down 45% from 2005. Surprisingly, the Median Selling Price in the city has remained unchanged at $250,000 for the last two years.
The Average Selling Price had continued to climb in Fairfield. This is a result of increased sales of higher end luxury homes. This price segment is impacted less by the current credit crunch. In 2006, there were three sales over the $5 Million mark with the highest reaching $6,975,000. However in 2007, we had seven sales over the $5 Million mark with the top two reaching $7,750,000 and $7,850,000. This sales activity at the upper price ranges is driving the Average Selling Price for 2007 up 9% over the prior year.
New Construction remained stable at 57 New Homes for the year. This included both homes built on previously vacant land and homes built after a "knock down". This compares to 53 New Homes in 2006 and 56 New Homes in 2005. New Home prices continue to climb. The Average Selling Price for 2007 came in at $1,367,226. This is an increase from the 2006 level of $1,191,349.
Overall, the inventory or number of homes for sale is down from the historic levels of 2006 but not as low as the years prior to 2005. The market times are down from 2006 but still longer than most sellers are used to. Prices are no longer climbing at a record setting pace but they are not tumbling either. Our local market continues to hold value and be a good investment.
Mike & Fern "Coach" Tetreau are a father-son Realtor team with William Raveis Real Estate in Fairfield and can be reached at 659-0622.
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