2012 Fairfield CT Real Estate Forecast, Advice and 2011 Recap

Be optimistic for the year ahead, but remember to stay cautious and watch the market. 2012 looks like it will bring more sales volume and higher prices, but not all segments of the market may experience those gains.

Historically, presidential elections have brought about increased real estate activity, and coupled with low interest rates and increasing consumer confidence, I expect that 2012 will surpass last years sales in volume and pricing gains, and fully expect that we have a very good probabilty to gain more ground in value by the end of this year. We did manage to eke out an average 1.5% increase in value, although I wouldnt get too excited about it just yet.

Interestingly enough, after checking year over year figures for 16 different segments of the market, the only homes that actually gained value last year were four bedroom homes, six bedroom homes (just barely), New Construction, and 2001-2500 square foot homes. Sales in these categories represent almost half of the total unit sales for the year,  but what about the other half? There are twelve categories that lost some value, and some much more than others.

Fairfield's total sales volume of just over $362 million was down by 50 million from 2010. But even though unit sales were down, last years's sale prices actually gained about $11,000 on average. The average sales price in Fairfield last year was $692,668.

There were 524 single family home sales in 2011 as reported in our local MLS system, and that number is much less than the 605 sales reported in 2010, but much better than 2009's 465 sales. In fact we nearly mirrored 2008's 521 units sold. When you look at Easton's 49 percent unit volume drop in 2011, it doesn't seem so bad.

Anticipate a few minor "bumps" to contend with come Spring and early summer, when it is expected that we will begin to see Fairfield's shadow inventory coming on to the market, and competing with owners wishing to sell their homes.

There were some segments of the market that were so close to matching 2010's average prices, that it is not even reasonable to say they either gained or lost in value. However, there were certain categories that showed strong increases or declines. Those specific segments are the ones to watch especially closely  in 2012.

The biggest winners in overall average gain:

+14% - New Construction
+14% - 2001-2500 square foot homes

Suffering the most last year:

(-12.5%) - Waterfront Properties
(-15.8%) - Homes over 4000 square feet


National trends are showing that buyers are opting for smaller homes, and locally, 2011 has shown that buyers have gotten much more conservative as well. That trend isn't going away in 2012, and the larger sized homes are still in danger of continuing their decline in value.

Best bets for selling for top dollar in the year ahead are homes between 1501-2500 square feet and  new construction.

Best bets for buyers are where the market has suffered, and they are apt to get a better deal. At the top of the list would be any home over 5,000 square feet, waterfront properties, condos, and homes under 1500 square feet where an addition could easily and affordably be built.

Bottom Line: Expect your home to hold its value throughout the year, with only minor price increases or declines in pricing in segmented markets, except for the larger sized homes, where there still is a higher risk of continued decline. We might see an overall increase for 2013- the "jury is still out, so to speak", so stay tuned for more updates throughout the year. This market has to be watched closely in the year ahead- things could change in certain segments of the market in a blink of an eye and values have the ability to increase on a moments notice.

If you have a question about buying or selling Real Estate in Fairfield, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :)   - Judy

Fairfield CT Real Estate Market Overview, Conditions and Forecast- October 2011

Fairfield, Connecticut  is a coastal town of 30 square miles and approximately 58,000 residents living in  21,600 households. Incorporated in 1639, just about 37 percent of the current housing stock was built prior to 1950. Approximately 81 percent of the homes are owner occupied.

I am pleased to present to you my real estate market predictions and buying and selling advice for Fairfield, CT. My experience spans over 26 years, and I have seen hot markets come and go, and bad markets come and go. I always find it funny how the media predicts that the real estate market is going up or down in the state, but you know as well as I do, that  each town has its own type of market, and within the town, there are areas that sell faster than others, and homes on particular streets that sell  slower than others. You really cannot generalize the market in a rational way. Deciphering the real estate market, is, and has to be, local and historical.

With that being said, I offer my opinions on the market for the coming months. Everyone's particular situation is different, and  if you need to buy or sell in Fairfield at a particular time, then you should do it. You should also contact me to assist you! (OK, Shameless plug) You know people have been asking me for years, "what do you think is going to happen in the real estate market?" and I say, "Well, if I knew that, I probably wouldn't be selling real estate, because I would have some type of amazing talent that NO ONE has ever possessed" That being said, I AM very good at numbers, statistics, and forecasting, so after doing extensive research, calculations, and taking into account the current economic climate, I present to you the following:
 
State of the Market: Current home sales average at around 45 per month and condos average about 6 per month. Fairfield sales seem to peak in in the second quarter, as does much of the market. Sales are still good, although the median price has dropped about four percent  from the last quarter.  I expect that the market won't make any big changes from now until the end of the year. Condos have been pretty consistent in sales throught the year.  Prices have indeed risen on average in town, however negotiation from  listing prices has risen dramatically, especially for condos. There is over a year's supply of condos available right now,  so remember- it's always best to price your condo "for the market".

What's Ahead in General: Tread lightly, even though there will be no major price adjustments either way in the coming months. Fairfield's real estate market  is giving some mixed signals, so when you sell your home, or choose to buy, make sure you review detailed analyses to make sure you are selling your home at the best price, or buying your home at the best price.

ADVICE FOR SELLERS: Is there a better time to sell your home in Fairfield? Yes, LIST IT NOW!!!!  There is a almost a TEN percent drop in inventory as opposed to last quarter. You have less competition, so take advantage of the buyers that are already out and looking now.

 ADVICE FOR BUYERS: Now, now, now, NOW! If you are looking to buy in Fairfield CT, I would get going on it right away! I believe prices will remain level throughout the coming fall and winter, and the interest rates are low right now. The same house  at the same price will cost you more when interest rates rise. Besides, sellers don't really "fish for pricing" this time of year..  If you are looking to buy a condo, NEGOTIATE! Now is the time!  You are still VERY Much in the drivers seat, so take advantage of it.

BEST BETS FOR BUYERS AND SELLERS: Three and Four bedroom homes, and/or homes priced within the $350,000-$400,000, $500,000-$700,000 ranges as well as the $1- $1,500,000 range. Two bedroom condos are also a good investment. Good price ranges in the condo market are between $300,000-$350,000 and $600,000-$700,000.

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