1 - Market Time
"Market time is the average number of days properties that sold during the month were on the market."
When Market Time for properties goes down, as seen with the red circles in the chart, it is a direct cause of lack of inventory (see #4). Norwalk is the most telling example of lower market time, as we have seen steady declines since 2013. Stamford and Fairfield have seen declines, but for a much shorter period of time.
2 - Median Price
"Median means 'middle'. There are an equal number of homes priced above and below the median."
Low inventory and market time mean nothing if prices are the same, but in the case of these three cities, more so with Norwalk and Fairfield, we see the median price going up. On average, between 10% and 20% for Norwalk and about 10% for Fairfield. Why Sell? So you can make more money!
3 - Months of Supply
"Months of supple is the number of properties in total inventory divided by average monthly sales over the previous 12 months."
Months of Supply is a great indicator of how inventory affects the market. In this case, we see a drastic decline in Months of Supply - this means than if no other inventory came on the market, in the case of Norwalk, all the homes would sell within 5 months of today. Given this was double in 2011 after the market crash, what better time to take advantage.
4 - Inventory
"Inventory is the number of properties on the market at the end of the month."
Inventory and prices are the easiest concepts to discuss and understand. As of March of 2013 when values were almost the same, we saw a drastic difference between Norwalk, Stamford, and Fairfield markets. In the case of Fairfield, inventory rose quite a bit, and then saw a steady decline; in Stamford, there was a modest rise, and then a modest decline; Norwalk was the only city of these three to fall below 2013 levels of inventory, and in this case over 20% decline since that time (on average).
I discuss inventory because this translates perfectly to increased prices. It's also so clear that when inventory falls, but demand remains somewhat stable, it's a great indicator for someone on the fence.
Stamford and Fairfield have done quite well, with an improving market. Norwalk has done better. In each chart, the most dramatic changes were with Norwalk inventory, which have led to devastating markets and high competition for buyers - sellers are running away with multiple offers and higher-than-asking prices. We have been raising out expectations and pushing the market higher for all of our listings.
As a result of this, especially in Norwalk under $600,000, we have been begging for more inventory, and working to make a case for why it's in your best interest as a seller. This has resulted in higher prices and better negotiating leverage for our sellers. It also poses a unique opportunity to avoid the market altogether and sell the home to one of our buyers or team's buyers before it hits the market - saving frustration, and resulting in quicker sales.
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.