This chart says it all, and is specific to Norwalk, CT real estate, under $500,000 for single family homes. However, if you live in Fairfield, Stamford, or other nearby towns/cities, there is a similar correlation across the board. That is, if you own a home in a price point at or below the median, it's likely you are in a good position to sell.
As you can see, in Norwalk, inventory has fallen 18% from the same time last year in these price points. This is not something to baulk at - with clearly consistent downward trends, the flip side, i.e. sales prices, should be going the opposite way (median sales price of $347,500 in December 2015, compared to $361,250 in December of 2016 for the same criteria; OR a 4% increase).
Let's talk more about this, and why it is happening. But first, an important definition:
Inventory: Number of properties on market at the end of the month.
Why Inventory? This metric is important because if you are looking strictly at supply and demand, having less supply with equal or less demand means prices will rise (again, as they have been doing). For you, this means that we can sell your home at a higher price, and possibly save you thousands on commission (happy to explain how).
Why is this happening? Over the past few years, the trends have continued consistently in the spring market ----> February/March arrives, and new inventory floods the market, and the market is HOT until the end of the summer (August/September). This year was different, as can be seen by the above graph - though the market was equally hot in these spring and summer months, the amazing thing was that this trend continued through the Holiday season, where buyers continued to buy in these lower price points.
My expert opinion is that the combination of location/desirability of this area, plus the proximity to NYC, made it most affordable and desired. I believe that Norwalk is the most inexpensive suburb of NYC within 1 hour train/drive. Fairfield and Stamford, are a bit more expensive, but also seemingly HOT market. Combine that with loosening regulation on mortgages, more cash and money in the market, and it is price time to sell.
How does this benefit you? If you own a home in the price points indicated, then you have a great opportunity to capitalize on the new leverage you have. This might translate to a price point that is above my general assumptions, but it all depends on location, size and lay of the yard/land, and other factors that affect sales prices in general. In other words, even if you think your home is worth more than $500,000, it's still worth a conversation (case in point - anything in Cranbury under $650,000 might be a perfect candidate).
I've written this post out of a mailing I am sending to buyers in specific locations and price points, but wanted to convert it to the Internet, in case there are people out there seeking to sell their home, and wanted to hear the good news.
My Plug: As always, if you fit into this criteria, and have a home you might sell soon, let me know. I can give a free consultation, a free market evaluation on the price of your home, and continue to educate you about the market. This would be appropriate even a year from now, as the more educated you are, the better decisions that you can make later. Just send me a message, or give me a call!
We (Joe and Chris Balestriere) are Realtors in Fairfield County, Connecticut. Our blog is meant to educate buyers and sellers and equip them with tools to get the most out of their Realtor, whether it is us or someone else. We focus on technology and how it enhances the work we do for our clients--we are not top CT Realtors by accident.