Happy New Year! As 2015 gets under way the general tone among agents and market participants in my market place is positive. The data points are no surprise to those of you who have been following along this year. Unit sale throughout the market have been down in comparison to 2013. Where price has been flat to slightly up with the exception of Fairfield which came in down 2.8%.
Sales (SF) for 2014 vs. 2013 were down in Westport (-16.7%), Weston (-12.0%), Wilton (-11.9%), Fairfield (-11.2%), Norwalk (-4.5%). Check my comprehensive monthly activity reports for additional statistics including market trends.
Consumer attitudes towards housing are still cautious, but with that said there are still some good drivers of this market. We are continuing to see job growth, home prices are stable and rents are reaching 7 year highs making the tenants rethink their lease renewals and consider a purchase. Another accommodating driver is the historically low interest rate still making purchases affordable.
Freddie Mac's Mortgage Market Survey is showing the average fixed mortgage rate falling for the third consecutive week, averaging 3.66 percent, it is at the lowest level since May 2013 when it averaged 3.59 percent. The 15-year fixed rate mortgage has fallen below 3 percent.
Inventories are low as we await the spring market. The exception is the high end luxury market where we are seeing a substantial overhang from last year, water properties excluded. Depending on the number of properties coming on the market, I continue to predict a 4-5% price appreciation for 2015.
I also see an increase in buyers from Manhattan this year as the city has reached its 2008 price peak, making towns like ours a value proposition by comparison. Manhattan Condos and Co-ops are at a 3.9 months absorption rate, which is the time it would take to sell through the existing inventory, where a 6 to 9 month rate would be balanced, creating a very competitive market for the would be buyer.
I wish you a happy and healthy new year!
Steven
