Orange Market Report December 2020

The real estate market in Orange saw a contraction in November when compared to the previous month, but still remains strong for the year.  The median sales price dropped over 9% from $427,500 to $385,000 while the number of houses sold increased from 12 to 14. However, those houses sold in record breaking time, as the days on market was just 24 days.  For the year, the median sales price is up over 13% so far.  Even though the median sales price was lower in November, Orange still continues to be in a strong sellers-market, as low inventory and strong buyer demand are still being experienced.  This long running sellers-market is expected to continue into 2021, as low interest rates continued to break records.  The 30yr fixed rate was 2.71% by the end of November; the lowest rate ever recorded. This is still a great time to sell a home, and with such low interest rates, a good time to buy.  Do you know anyone looking for more information about their real estate market?  I’d be happy to help.

12 Month Sales Activity

Housing Stats

(change from previous month)

Median Sale Price:$385,000
change:-9.94%
YTD change:13.24%
Units Sold:14
change:16.67%
Active Listings:39
change:-25.00%
New Listings:15
change:-28.57%
Days on Market:24
change:-47.83%
Months of Supply:3.30 (Seller's Market)
change:-8.33%

Economic News:
Stock Market: November saw all three major US markets rise sharply, as investors were encouraged with the news of two coronavirus vaccines showing favorable trial results, even while new cases continued to rise. The NASDEQ was up11.9%, S&P 500 up 10.75% and the Dow Jones was up 11.84%.
Employment: Employment rose by 245,000 jobs in November, and the unemployment rate lowered slightly to 6.7%, according to the U.S. Bureau of Labor Statistics. These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it. In November, notable job gains occurred in transportation and warehousing, professional and business services, and health care, while employment declined in government and retail trade.
Real Estate: According to realtor.com’s 2021 housing forcast, the current seller’s market is likely to continue. Low inventory and interest rates combined with strong buyer competition will continue to drive prices upwards. Buyers will suffer from low inventory, as higher prices will erase gains ofset by low interest rates, challenging affordability.

2020 Local Real Estate Price Trends:

November was another great month for home sales prices. Year-to-date median sales prices continued to be on the rise for most local towns when compared to 2019’s first 11 months. All towns show increases in median sales price, with many over 10%.

1/19-11/191/20-11/20Change
Bethel$345,000 $386,550 12.04%
Bridgeport$204,000 $240,000 17.65%
Easton$562,500 $579,000 2.93%
Fairfield$580,000 $665,000 14.66%
Milford$305,000 $350,000 14.75%
Monroe$362,500 $412,500 13.79%
Newtown$380,100 $430,000 13.13%
Norwalk$485,128 $535,000 10.28%
Orange$375,000 $385,500 2.80%
Redding$527,000 $560,500 6.36%
Ridgefield$628,250 $699,000 11.26%
Shelton$339,000 $377,000 11.21%
Stratford$250,000 $291,000 16.40%
Trumbull$385,000 $430,000 11.69%
Weston$685,000 $805,000 17.52%
Westport$1,142,857 $1,341,000 17.34%
Wilton$697,500 $800,500 14.77%

Improvements for First Time Homeowners:

With the tight housing market most buyers have experienced in the past 6 months, many buyers have been purchasing homes that requires updates to structural and mechanical systems.  Many new homebuyers focus their repair budget on aesthetics such as updating a kitchen or bathroom, while placing a lower priority on systems updates.  However, paying attention to the homes needed updates is critical to protecting their investment.  Here are some key areas to address:
1. Clear gutters keep water away from the foundation, minimizing basement leaks.  Downspouts should extend 5’ from the house.
2. Poorly insulated homes waste huge amounts of money both in Winter and Summer. Spending a few thousand dollars bringing a home up to modern insulation standards can save in the long run.  Foam insulation is becoming more standard.
3. Foundation cracks need attention to prevent a problem from getting worse.  Repairing cracks will help eliminate water into the basement.
4. Damaged roof shingles can often be repaired without replacing the entire roof.  Even so, older roofs need to be monitored to determine when a replacement is necessary.  Ignoring this can lead to costly interior repairs.
5. Upgrade older incandescent or CFL lights to LED bulbs throughout the house.  LED’s use almost half the electricity as equivalent CFL’s and have become more affordable.
6. Upgrade air conditioning from window units to either central air or mini-split system.  Air conditioning will improve the home value and reduce excess moisture.  A mini-split system, although more expensive, can cost less to operate, cooling rooms only when needed.
7. Electrical outages can be eliminated by installing battery backup system to a house with solar panels or a whole house generator to a house without.  Federal tax credits still exist for some solar systems.
8. Exterior wood needs to be maintained.  Water can rot wood trim, deck boards and railings if not properly protected.  Mold should be removed, and wood sealed with paint or wood sealers.
9. Tree maintenance should not be overlooked.  Limbs overhanging or close the house should be pruned and diseased trees should be removed to prevent spread.
10. Chimney maintenance need to be addressed in order to prevent further damage and keep the chimney operating safely.  Repair damaged mortar and bricks.  Install a cap to keep out moisture and install a new liner if necessary.  

Prices For Fences On The Rise:
With the pandemic, homeowners are seeking more privacy and security. The demand for fences has driven up prices. Since the begining of 2020, the price for pressure treated wood as more than doubled.

Orange Sales Trends: January-November

November Single-Family Home Sales

(OLP: original list price • LP: list price • SP: sale price • DOM: days on market)

AddressStylesq ftBRBA (f/h)OLPLPSPSP/OLPDOM
637 High Ridge RdContemporary1,92432/1$389,900$389,900$389,900100%70
973 Cow Path RdRanch1,66432/0$349,000$349,000$385,000110%22
400 Drummond RdRanch2,14632/0$449,000$449,000$505,000112%1
311 Hotchkiss RdRanch1,83632/0$345,000$345,000$360,000104%16
226 Sylvan Valley RdCape Cod1,71622/0$285,900$285,900$290,000101%27
835 Woodruff RdCape Cod2,34832/0$320,000$320,000$322,500101%15
318 Drummond RdRanch1,32431/0$348,500$348,500$341,00098%59
136 Cricket LnRanch1,61632/0$364,900$364,900$386,000106%2
424 Wildwood DrColonial3,09842/1$549,000$549,000$534,00097%36
500 Ridgeview RdRanch1,80831/2$419,000$419,000$451,000108%3
50 Rolling Ridge RdRanch2,01232/1$379,000$379,000$325,00086%25
477 Howellton RdRanch2,52332/0$385,000$385,000$385,000100%47
254 Midland DrSplit Level1,60441/1$349,900$349,900$360,000103%41
48 Farm Hill RdColonial4,31443/1$875,000$875,000$875,000100%5
Units Sold: 14$371,950$371,950$385,000101%24
Are You Interested In A Real Estate Review?
A real estate review is designed to give you information about sales in your neighborhood you can use to make sure you are properly insured and aware of your home’s value.  Contact me today to get your personalized complementary review. phone:  (203) 895-2783.  email:  peterlamastro@kw.com