Karen Brewer

Darien Homes Market Outlook for 2012

Year end numbers have not been released for Darien, Ct and environs, but that won’t stop me from making some general predictions about the real estate market in 2012. None of this is earth shattering but Fairfield County typically acts as its own market within the state of Connecticut and trends here are worth observing since they diverge somewhat from other areas.

Everyone constantly asks, “How’s the market?” There is no one answer.

Homes are selling, although not at previous levels,and will come out below 2010. We do not have a foreclosure problem. I believe we have hit the bottom. So what’s next? I characterize the Darien real estate market as being in a ”suspended state” with positive and negative factors offsetting each other. For example, prices are at an all time low as are interest rates. However, we have not seen a significant loosening of defensive lending procedures from the banks making it difficult for all but the “creme de la creme” of applicants.

I don’t expect any further  free fall of pricing here in Darien or other Gold Coast towns and Ido believe the prices have stabilized . Again,our “suspended state” encountered multiple bid situations in 2011 when the market perceived unusual value. It doesn’t mean prices are rising. These are just one off situations and lend credence to the notion, that “If you price it right, they will come”.

If upward trends reveal themselves across the country,  I believe Darien and Fairfield County towns like it, will be among the first to recover fully. The “bubble” here existed as in other parts of the country, but underlying that bubble was intrinsic value, namely, proximity to New York City, waterfront and excellent municipal services. Darien,Greenwich, Westport homes  were never built on a house of cards.

One of the key determinants for 2012 will be buyer confidence and the psychological factors governing real estate. Sure those people who can afford higher priced home say $2million and up are fairly impervious but uncertainty has an unusua land sometime overblown  effect on people. If buyers or seller perceive bad news is coming or remain uncertain about their prospects, they tend to hunker down. This is reflected in the real estate market,stock market etc. That said, barring any further shocks to the economy people should begin to feel more optimistic about the future. Retail Christmas sales this year might portend good news for the way people are generally feeling.

So to all of you who claimed to be waiting for the bottom of the market,—its here.Interest rates are low,sellers have become more realistic and Darien, Ct remains an excellent investment for those planning on staying here five to ten years. I can be contacted at kmbrewer2@aol.com or 203-554-0951 for consultation.

This entry was posted on Sunday, January 1st, 2012 at 7:14 pm and is filed under Buyers, Market Trends, Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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