Second quarter real estate: Condos hot, home prices drift down
Nineteen more homes sold in the second quarter of 2017 over the same stretch a year ago, but the average price of a single family house dipped 11% compared to the same period in 2016.
The condo market proved to be a little stronger in the second quarter, with twice as many units being sold — and at a higher average price tag — compared to April, May and June of 2016.
“The town is growing and headed in the right direction,” said Kyle Neumann, president of the Ridgefield Board of Realtors.
There were 143 residential properties sold in Ridgefield for a total of $92,201,969 in April, May and June of 2017, compared to 111 properties that sold for $81,571,554 in the second quarter of 2016, according to the Board of Realtors’ Smart Multiple Listing Service. That’s a 29% increase in volume of sales closed, and a 13% increase in dollar value of sold properties.
“In total, there’s 32 additional sales this year in the second quarter, and there’s an additional around $10 million more in closed volume,” said Neumann. “Although the higher price range has decreased in sales, the total volume has increased — which is a good thing.”
The average sales price for a single family house was $696,561 in the second quarter of 2017, down about 11% from $784,132 in the same period of 2016.
The average condominium price was $411,706, up about 13% from an average price of $363,585 in the same period of 2016.
Of the 143 sales in the second quarter, 117 were single-family homes, and 26 were condominiums. In 2016’s second quarter, 98 single-family houses and 13 condominiums sold.
The lowest sales price for a single-family house in the second quarter of 2017 was $205,000, compared to $280,000 for that quarter in 2016.
The highest sales price for a single-familiy house was $2,900,000 in 2017’s second quarter, up from a high price of $2,600,000 in the second quarter of 2016.
The median sales price for single-family homes fell to $629,000 in 2017’s second quarter, compared to $687,500 in that period of 2016.
Sellers weren’t asking as much.
The median list price for single-family homes was down to $649,000 in the second quarter of 2017, compared to $704,450 in 2016’s quarter two. The median “original listing price” for single families was also down comparing the two second quarters, falling to $669,000 in 2017 from $715,000 in 2016.
Houses were selling a little closer to the original list price. The eventual sales price for single- family houses was 95% of their original listed price in the second quarter of 2017, compared to 93% in the second quarter of 2016.
“Sellers, I think, are really starting to be more educated on the value of their homes in today’s market,” Neumann said. “So by seeing the average list price, or median list price get reduced from the $700,000s or $800,000s to this year where it’s $650,000 to $723,000, I think people’s heads are in the right places as to where the values are for their homes. As a result, we’re seeing more houses being sold.
“The market in Ridgefield is really resetting itself,” he said. “It’s the same trend we saw last quarter, where that average price being pushed and listed where it used to be the $700,000s is now in the $600,000s …
“I think it’s showing there’s a turnover in Ridgefield of younger families,” Neumann said.
“Because there’s a lot of turnover and it’s becoming a younger town, a lot of the families aren’t on their third of fourth home that they’re buying.”
Condominium sales doubled and, with 26 condos selling in April, May and June of 2017, compared to 13 in 2016’s second quarter.
“The condo market really has taken off,” Neumann said.
“Over the years, Ridgefield has just built more — there’s more volume, and a lot of it is newer construction.”
The total dollar volume of condo sales rose to $10,704,346 in the second quarter of 2017, more than double the dollar volume of $4,726,600 in that period of 2016.
Every price indicator was up in 2017’s second quarter, compared to the year before. Average sales price for condos: $411,706 from $363,585; median sales price, $250,000 from $190,000; average list price, $425,708 from $383,569; median list price to $274,500 from $220,000. Average original list price, $431,338 from $398,562.
The average sales price was 93% of the original list price in 2017’s second quarter, up from 90% in 2016.
The lowest sales price for a condo unit in the second quarter of 2017 was $12,500, according to the Board of Realtors, and the highest sales price for a condo was $1,860,000. That compares to a low of $144,000 and a high of $1,815,700 in 2016’s second quarter.
“Ridgefield has a strong condo market right now,” Neumann said.
“The market clearly is going up, as far as value,” he added.
“If a buyer wanted to come to Ridgefield and can’t afford a house that has all the bells and whistles they want, a condo is a great alternative.”