2012 Norwalk CT Real Estate Market Forecast, Advice & 2011 Recap

Norwalk is one of the few cities that enjoyed an increase in value from 2010, and even though it was only 1.7 percent, it was still there. Given the fact that unit volume was down fourteen percent to 438 unit sales, I'd say that was quite good, actually. However, the year ahead holds some uncertainty for Norwalk. The first quarter's activity will be very important. In the beginning of 2011, Norwalk's market seemed to be the steamroller in the area, and sometime around the third quarter, it lost most of its steam.

Fortunately, and historically, presidential elections have brought about increased real estate activity, and coupled with low interest rates and increasing consumer confidence, it should help this market considerably in the coming year, but there are other very important factors involved.

Anticipate a few hurdles to overcome in the market come spring and early summer, when it is expected that we will begin to see Norwalk's shadow inventory coming on to the market, and competing with owners wishing to sell their homes. Over 1,000 properties are on the horizon for upcoming bank owned properties that will be coming on the market in 2012 and early 2013- maybe even into 2014, and that number is more homes than sold in all of 2010 and 2011 combined.

The shadow inventory is disconcerting. Of course, these properties are not all going to come on the market at the same time, and it will take at least a few years for the market to absorb them, but they ARE out there, and most certainly WILL affect the market here, if only by the sheer volume of properties in the pipeline.

The condo market here took a big hit, both in volume and average sales prices. Volume was down just under 20 percent from 2010 to just 192 unit sales. The average sales price suffered, too. Condo prices are down 11.8 percent on average

Seven of the sixteen market segments measured in Norwalk achieved an increase in average pricing.

The biggest winners were:

Five bedroom homes
Waterfront properties
Homes between 2001-2500 square feet

Those segments suffering the most:

Condominiums
Homes over 4000 square feet
Six bedroom Homes
New Construction

Very surprising that five bedroom homes are pretty much in demand across this part of Fairfield County, but the buyers are shying away from the larger homes at the same time, which is just what is happening across the country. Smaller is getting better.

Best bets for selling for top dollar in the year ahead are five bedroom homes  waterfront properties, and homes between 2001-2500 square feet.

Best bets for buyers are where the market has suffered, and they are apt to get a better deal, and that would be any condo in the city, any home over 4000 square feet, and new construction.

Bottom Line: Norwalk's market has a chance to get volatile this year. The first quarter can set the stage- let's hope it's a good one. Stay tuned for weekly updates and further forecast as they become more clear.  This is a market to watch. Pay close attention, and we'll certainly keep you informed.

If you have a question about buying or selling Real Estate in Norwalk, 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