Friday, December 30, 2011

Norwalk Condominiums

Norwalk Condominium sales have been hampered in recent years by a larger than
average inventory, especially in terms of new construction. Much as in the late 1980's the builders seem to have obtained financing and jumped on the bandwagon just as the real estate market was about to change.

The inventory of new and newer condominiums has been slowly decreasing through
sales in the past 2 years. Over the same two year period there has also been a marked increase in the general condominium inventory. With increased inventory and a slightly decreased demand it should not be surprising that both pricing and marketing time have been affected.

The official Multiple Listing Service shows that the Marketing Time for condominiums in Norwalk in 2011 was 152 days, an increase of 32.2% over 2010. That
marketing time may not be a true reflection of the time that should be expected to sell a condo in Norwalk. In 2011 there was 13.7 months of inventory, indicating that
based on 2010 sales it would take that period of time to sell off the inventory. The flip side is that the inventory actually decreased 7.7% from a 14.8 month inventory level in 2010.

The median condominium sales price in Norwalk in 2011 was $255,000. This represented a decrease of 14.4%. There were 185 closed sales, or 35 less than in 2010.

There were some positive signs in the last quarter of the year. Of the 12 condos currently under binder (representing the most recent activity), the average asking price is $288,642. More importantly, of the 30 condos currently under contract the average listing price is $342,100.

Breaking down the aforementioned numbers further, there are 6 properties either under binder or contract in the price range of $350,000-450,000 vs. 28 that sold for all of 2011.

2012 selling figures look poised to be much better than 2011.

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