This month’s market is Fairfield County, Connecticut – a market that emerged as one of the hottest real estate markets in the country after years of being underwater. Fairfield County has slowly transformed into a luxury real estate market, and with the mass exodus of New York City due to COVID-19, its high-quality homes and close proximity to the city has made it a desirable destination for upper-middle class professionals looking to move into the suburbs. We’ll do an overview of the Fairfield County area and then dive into three of the biggest cities in the market: Bridgeport, Stamford, and Norwalk.
From Undesirable To Highly Competitive
- $499,000 Average Sale Price (Up 28%)
- 1600+ Homes Sold Monthly
- 76 Average Days On Market
- Prices Expected To Increase 8% During 2021
Fairfield County has a predominantly white-collar population with many residents involved in business and financial careers, reflected in their average household income being well above the national average. The higher level of income and rising numbers of people working remotely from home has helped speed up the local real estate market’s competitive nature and driven up the area’s desirability.
As of December 2020, the average home sale price for the county reached $499,000, marking a 28% increase from the previous year. Over 1600 homes were sold during the month, with homes remaining on market for an average of 76 days and typically receiving at least two offers before closing on the sale. It cannot be understated how many people are trying to move into Fairfield County and the affect it will continue having on the market, with Realtor.com predicting an additional 8% rise in home prices throughout 2021 which is just behind real estate juggernauts like Silicon Valley and San Francisco.
Bridgeport Real Estate Trends
- $270,000 Average Sale Price (Up 35%)
- 58 Average Days On Market
The Bridgeport market is on the lower end of Fairfield County’s spectrum, with a lower average home price but faster sale turnaround. Homes in the city are selling on average for $270,000, which is a 35% increase from the previous year. The average times homes are spending on the market is 58 days, which is significantly lower than Fairfield County’s overall average. As of this writing, hot homes in this area can remain on market for as little as 33 days on average. This kind of market is perfect for investors who specialize in fix and flips, as the entry-level cost is lower than other nearby areas, but the sale price ceiling and potential ROI grows daily based on the constantly increasing demand. Currently, the average revenue for flips in the state of Connecticut is $98,950 with Bridgeport already being on the higher end due to the inventory shortage and low initial property purchase prices. Some of the home features in Bridgeport that are drawing attention online from potential buyers are walk-in closets, new appliances, and four bedrooms- these features receive more listing views and are helping sellers receive their full asking price!
Stamford Real Estate Trends
- $530,000 Average Sale Price (Up 14%)
- 69 Average Days On Market
Stamford is a bit closer to the luxury market moniker that Fairfield County has earned in recent years, but it’s still an affordable enough area for middle class families and professionals to be able to find a home that works for them. As of December 2020, the average home sale price in Stamford is $530,000, marking a 14% increase from the previous year. Homes in the area are staying on market for an average of 69 days, which is very close to the county average, while hot homes can sell as quickly as 43 days. This is an area that benefits both fix and flip specialists as well as experienced investors who can complete new construction projects, as the housing demand is desperately searching for new homes. With longer time spent on market and a larger barrier-to-entry cost on homes, the new construction route allows an investor to potentially sell the home before it is even finished while choosing the style, materials, etc. to minimize costs and maximize profit. Some of the home feature trends in Stamford that are receiving more attention and full asking prices from potential buyers are a large master bedroom, three bedrooms, and landscaping, which means these homes are best designed for full family living situations.
Norwalk Real Estate Trends
- $448,000 Average Sale Price (Up 13%)
- 52 Average Days On Market
Norwalk is like Stamford with its real estate market, both in terms of average costs and days on market. However, Norwalk is also much more diverse in terms of available real estate, with available homes ranging from a couple hundred thousand to multi-million-dollar luxury houses. This level of range means the area attracts vastly different home buyers, so it’s best to research specific neighborhoods when making an investment decision. As of December 2020, the average home price is $448,000, which is a 13% increase from the previous year. Homes are remaining on the market for an average of 63 days with hot homes selling as quickly as 43 days, which is very close to the county average. The home feature trends that are attracting more attention in the area paint a better picture of the difference between Stamford home buyers and Norwalk home buyers. In Norwalk, more people are searching for two bathrooms and two stories, wanting more division and separation in the home so family or living partners can have more of their own space. However, large master bedroom still topped the list for listing views and full asking price being met, so make sure to focus on the master bedroom!
Final Thoughts
The Fairfield County real estate market has already had an incredible 2020 due to multiple factors aligning, but the most important information to highlight is that 2021 is set to continue that trend. With inventory shortage reaching an all-time low and demand in the area continuing to rise each month, this seller’s market is ready to be capitalized on by savvy real estate investors who know what to look for in a property and how to finance their project. Asset Based Lending are experts in the local real estate markets of Connecticut and offer hard money loans for fix and flips, new construction, and rental property investments. If you’re ready to be approved for a hard money loan in Fairfield County or another part of Connecticut, contact ABL today.