Blast REI has become the name to know when it comes to Multi Family Sales in Fairfield County, CT. We have positioned ourselves in this niche because we recognize a tipping point that is coming to the market – but for now, prices are rising and inventory remains at all-time lows. As we interact with more and more homeowners, knowing the numbers has become more helpful in our discussions, so we wanted to pass that on to you.
Multi-Family Sales by the numbers
If we talk strictly about prices and inventory, we find that multi-family homes in the cities of Fairfield County CT have fared well. We contribute this to how close we are to NYC but with the cheapest cost of living within an hour of the city.
The below graph shows the median sales price of property in Norwalk, Stamford and Fairfield, to demonstrate our point about how awesome the market is faring for these types of properties. As this chart clearly shows, the average sales price in all of these markets has gone up 20-40% since 2014, with Stamford market achieving the high point of that range.
Now, if we look at the absorption rate, the fancy word for months of supply, we see this falling by as much as half. Simple, high-school economics tells us that as the total inventory (supply) falls, the demand increases, and therefore the median price (as demonstrated above) increases. (Well, we weren't so good at economics in high school, but we learned what all of this meant years later!)
There are a handful of other graphs to further this point, such as falling market time, and that the number of unit sales has stayed constant in each of these markets. But in general, this type of news bodes well for the multi-family market, and we hope we are not the first to be saying this (if we are, then it is a small win for us!).
why would you want to sell if prices are rising?
We are firm believers that the market won’t go up forever (as demonstrated by every other financial market out there). More importantly, we have seen more new apartment building construction these past few years than ever in Fairfield County, and we are thinking that as a result of an abundance of inventory, rents will start to fall in these cities. This means less cash flow that ultimately will lead to lower median sales prices. That is our opinion, but as market experts, we use our knowledge to make educated predictions that help you make better decisions. If you disagree, we WANT to hear it; feel free to comment!
Because of these upward trends for the market, we are finding multifamily owners in the area and encouraging them to sell. We have been able to present a pipeline of buyers for them, to avoid putting the home on the MLS and scaring the tenants. If we do end up on MLS, we have strategies to maximize the sales price getting our clients at or above asking price (in under 14 days on market). Whatever the case, we are here to help!