At the end of Q1 2024, a clear trend emerged in Fairfield County's luxury real estate market: low-interest rates kept homeowners from selling, limiting inventory. This made it challenging for buyers, who had to act quickly with few options. By mid-Q2 2024, these conditions still favored sellers. However, May's data suggests the market is adjusting to economic and internal changes.
May 2024 Trends: By Numbers
- General Sales Trends: Compared to a year ago, overall unit sales decreased slightly by 1.1%. Given the decrease in inventory (see bullet #3 below), this decline in total unit sales is less significant. Instead, two other factors are more noteworthy for understanding the general sales trend:
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- Days on market: -5.8%
- Sales to list ratio: 104.8%
These dynamics show that homes are selling faster than they were a year ago and above their asking prices. This is crucial information for sellers.
- Price Adjustments: Median sales prices across all markets decreased slightly by 2.2%, marking the third consecutive month of decline in luxury markets. This trend indicates a more competitive pricing environment.
- Inventory Dynamics: New listings decreased drastically by 36.1%, tightening an already limited market. This reduction creates a competitive environment where well-priced, well-positioned homes sell quickly.
What we are seeing “in the field”
While we focus on nine luxury markets in Fairfield County, two stood out in May due to the notable data below, and our recent experience with sellers in these areas.
If you're considering selling in Weston or Wilton, now may be an ideal time. Buyers in the $1.5M-$2.0M range have clearly identified these markets as desirable.
Strategic Recommendations for Sellers
In a market characterized by tightening inventory and robust sales-to-list ratios, sellers are in a unique position to capitalize on current conditions. To optimize opportunities, sellers should focus on the following strategies:
- Pricing: With the slight decrease in median prices, set a competitive yet realistic price to attract serious buyers and generate more competitive offers.
- Marketing: Highlight your home's unique features that meet current buyer demands and run a targeted media campaign aimed at likely buyers.
- Timing: Consider market dynamics specific to your property's location and type. With fewer new listings, the timing of your sale can significantly impact the final price and days on market.
Insights for Buyers
Buyers should approach current market conditions with strategies for the following:
- Opportunistic Purchases: With decreasing median prices and tightening inventory, it's crucial to act quickly on the right opportunities. Ensure your financing is ready and make convincing offers.
- Navigating Competitive Offers: Homes are often selling above list price. Make sure your offers are competitive and your advisor crafts appealing offers in terms of both price and sale terms.
- Expanding Your Search: Consider broadening your search to areas with higher inventory or significant price adjustments. Wilton and Weston have seen increased buyer activity. As such, many buyers are choosing to expand their geographic search for better pricing opportunities. This strategy could yield better pricing opportunities
Conclusion
As Fairfield County’s market evolves, Cindy Raney & Team is committed to guiding you through the complexities of buying or selling in this competitive environment. Our personalized advice and strategic insights help clients make informed decisions.
