Typically, the trends in the Fairfield County market lag national ones by three to six months. While we don’t see national trends impacting our markets just yet, as advisors, it’s our responsibility to identify outside influences before they reach us. That helps you – as a buyer or seller – make anticipatory decisions.
National Market Trends
Nationally, we view a market in transition. Several of the nation's largest markets have seen price declines, which is a new phenomenon after several years of being red hot. For example:
-
Miami: Year-over-year decline of 11.2% in average home price
-
Denver: Year-over-year decline of 6.3%
-
Seattle: Year-over-year decline of 5.5%
These trends suggest that the broader housing market may be experiencing shifts that could eventually influence Fairfield County.
How National Trends Affect Fairfield County
While Fairfield County has not yet seen the price declines that some major national markets are experiencing, here are signs to watch for:
-
Price Adjustments: As national markets cool and prices adjust, Fairfield County may follow suit, albeit with a delay. Sellers should consider the potential for future price adjustments when deciding on timing and pricing strategies.
-
Inventory Levels: The significant drop in new listings across Fairfield County mirrors the tightening inventory seen nationally. This trend could lead to increased competition among buyers and sustained upward pressure on prices in the short term.
-
Buyer Behavior: National trends often influence buyer expectations and behavior. As buyers become more cautious in response to national market conditions, we may see a corresponding shift in Fairfield County, with buyers taking longer to make decisions or negotiating more aggressively.
Overall Recommendations for Fairfield County
Sellers
Should You Sell Now?
Yes, especially if selling is top of mind. The combination of increased median sales prices and reduced inventory creates a favorable environment for sellers. The key data point here is the significant drop in new listings across many markets, which indicates less competition and more potential for favorable sale prices.
Markets to Consider
-
Westport: Limited inventory and higher prices.
-
Weston: Increased demand and rising prices. Plus, the added benefit of being able to leverage Westport’s facilities at Longshore and beaches.
Buyers
Where to Look
Focus on markets where you can find relatively more listings and where prices haven't surged as dramatically:
-
Greenwich: Despite a slight drop in unit sales, new listings have increased by 35.3%, offering more options.
-
New Canaan: Stable market with increased unit sales and new listings, indicating healthy activity.
What to Do
-
Be Prepared: Ensure your financing is ready to go. In a competitive market, being fully underwritten can make a significant difference.
-
Act Quickly: With limited inventory, desirable properties will go fast. Be prepared to make swift decisions.
-
Negotiate Wisely: While some markets show price increases, others are stable or slightly down. Use this to your advantage in negotiations.
Conclusion
Fairfield County’s luxury real estate market presents both challenges and opportunities this June. Sellers can benefit from the current conditions by capitalizing on reduced competition and higher prices, while buyers need to be strategic and prepared to navigate the competitive landscape. We will continue to keep an eye on national trends so that we may advise you accordingly about the future.
