The dynamics of the real estate market constantly fascinate us. Despite rumors of gloom prevalent in the media in the past 12 to 18 months, the law of Supply and Demand has not been revoked! Demand in Fairfield County is driven by the perception of quality of life as well as the economic factors of low interest rates and full employment. Closed transactions for Ridgefield single family properties increased by 16% in January 2007 compared to January 2006, and this is a very encouraging sign.
We recently ran across some figures that tell an interesting story related to the affordability index. In the last ten years, the price of chicken nationally has increased by 13%, eggs by 25%, and gasoline by 105%. Conversely, a Lexus GS300 has decreased in price by 5%. Since 1996 the median price of single family homes in Ridgefield has increased by 119%. Consider the impact on affordability with increases of this magnitude. One of the drivers of price increases has been the adjustment of the cost of financing which has encouraged activity in the real estate market by dramatically lowering the on-going monthly cost of housing.
The average price of a single family home in the first quarter of 2007 is $805,105. This number is destined to increase when the $4.5 million and $2 million currently pending sales close.
It's a great time to buy in Northern Fairfield County, Connecticut!!
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