2012 Trumbull CT Real Estate Forecast, Advice and 2011 Recap

The year ahead promises be a good one for Trumbull, as we have hit our stride in the last quarter and continue to be strong. Although unit sales were down about six percent last year, it was primarily due to a very slow start in the first few months of 2011.

There were 276 single family home sales in both 2010 and 2009 and I am expecting that this year will at least bring us back to 2008 sales levels of 284 units.

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. We may even see some price increases this year if things keep going the way they are right now.

We can reasonably anticipate some market instability though,  come spring and early summer when it is expected that we will begin to see Trumbull's shadow inventory come on the market, and competing with owners wishing to sell their homes. Close to 360 properties are on the horizon as upcoming bank owned properties that will be coming on the market at some point in 2012 and early 2013, and that number is more homes than sold in all of 2011.

The year ahead is not so easily predictable because of the amount of distressed properties that seem to already be in the pipeline. It can go one of two ways, and incidentally, bank-owned properties are not always good deals. In Trumbull's case, it may either bring more buyers to town on a perception of a discount, or it will impact the sales of pre-existing owner-occupied properties. It's too early to tell. I'm leaning on the thought that they will bring more buyers in town. Next question- Will the upcoming inventory hurt sales prices? I actually don't think so.

Average sales prices decreased just under 4.5 percent, with an average sale price in 2011 of $389,422. If it weren't for the latter part of the year, 2011 would have been dreadful. As it is, last year's unit sales are lower than they have ever been in the last decade. We're snapping out of it, though. No worries.   

At best, we may very well begin 2013 back at 2010 price levels or above, which would not be a bad thing. To put things in perspective, Trumbull properties lost over 20% of their value since 2005. We just need to catch up on those unit sales which have been hurting quite badly over the last few years, in comparison to the 400-500 sales that have occurred annually in years past. We are not getting close to that in 2012, but I do think we can at least hit the 300 mark.

There are some segments of the market that fared better than others this past year, and by that, I mean those segments lost less value than other parts of the market. Five bedroom homes were the best performing properties in town price-wise, as well as homes that are in the 3001-4000 square foot range.  They actually gained value by about 1.7 percent. Other than that, every conceivable segment of the market experienced a decrease in value from 2010 to 2011.

Smaller homes under 1500 square feet seem to have been the safest bet if you were selling this past year, but I would venture to say that Trumbull is probably one of the BEST places to buy a home right now. It's on its way up. You heard it here, first.

Best bets for selling for top dollar in the year ahead are five bedroom homes and any homes between 3000 and 4000 square feet.

Best bets for buyers are truly anywhere in town, and the sooner, the better.

Bottom Line: Expect prices and sales volume to increase this year. It seems that Trumbull has turned the "proverbial corner".

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