As summer draws to a close, what are the Ridgefield CT Real Estate Market trends? It's an interesting picture: median home prices are slightly higher, number of sales are significantly higher than the same time in 2012. What does this mean for you if you are a buyer? What does it mean to you if you are a Seller?
The data suggests that if you are planning to buy in the next 12 months, you should focus on finding a home sooner rather than later. Something not mentioned in this video is the direction of interest rates. This year we have seen an increase in mortgage interest rate from an average of 3.5% to 4.5%. While any mortgage with an interest rate in the 5% range is still incredibly attractive, with each increase, buyers lose purchasing power. The significance of this is that unless prices drop, buyers are not able to purchase as much house for the same monthly cost. Using an average purchase price of $400,000, you can see how each small increase in rate affects a buyer's monthly payment, resulting in a decrease in purchasing power. The conclusion: why wait when you can get more home today for a still affordable payment.
If you are a seller, the message is virtually the same: why wait? With every increase in mortgage interest rate, your pool of qualified buyers shrinks. Prices are not increasing so rapidly that you are likely to see a significant upward change in your sale price. The conclusion: if you need to sell, don't wait for a better market. The best market is now.
Contact us when you want more information on local real estate conditions. We promise up-to-the-minute data that will always help you make the best decision for your family.