Whew! The first half of 2010 is in the can, and the Ridgefield real estate market is, well… it's holding its own.
My office has been very busy with closings lately, many of which were facilitated by the homebuyer credit offered by Uncle Sam to income-qualified buyers.
To receive the $8,000 credit (first-time homebuyers) or the $6,500 credit, the deal needed signed contracts by April 30. These transactions are closing now. By all accounts, this incentive (combined with incredibly low mortgage rates) has fueled recent market activity. All of the realtors, real estate lawyers and mortgage brokers have been working overtime getting these deals closed for our clients.
For the first six months of 2010, 120 single-family homes were sold in Ridgefield. Compare this number to the last two years' statistice—66 in 2009 and 125 in 2008—and it looks like 2009 might in fact be the bottom of this market cycle in terms of volume.
While the number of Ridgefield transactions is back on the rise, prices are lagging behind which is expected. If all continues in this fashion, it will take some more time before we see price appreciation.
One sign we are moving into a more balanced overall market where sellers' list prices are more aligned with actual market value is that 18 percent of the 120 transactions sold for the listing price or more, many with multiple offers! Another sign of a balancing market is that pending sales are divided evenly between luxury and more modest homes, the dividing line being a home price of about $800,000.
The activity uptick has choked the system a bit, because the collective ability of the banks to process mortgage applications isn't keeping up with demand spurred by the homebuyer credit. Although this is just a temporary problem, many closings have been delayed, prompting the federal government to extend the window for closing.
By and large, loans are being approved, mortgages are being funded, buyers are moving in and sellers are moving on.
Rob Gutman is a real estate agent at Keller Williams Realty and also writes the blog Real Estate Chocolate. You can contact him directly at rgutman@gmail.com.
