July 2024 Market Report
Norwalk
CT
State of the US Economy
The U.S. economy added 114,000 jobs in July 2024, a significant slowdown from the previous month. The unemployment rate rose to 4.3% from 4.1% in June, the highest level since October 2021, signaling a cooling labor market. This deceleration suggests the economy is beginning to slow down, increasing the likelihood of a September rate cut. Typically, a slowdown in employment results in reduced consumer spending, which helps lower inflation. With the job market cooling and inflation tapering off, the Federal Reserve may consider easing interest rates. Inflation has decreased to 3%, down from 3.3% in June. These factors are reflected in the 30-year fixed mortgage rate, which has fallen from 7.1% in May to 6.7% in July.
The U.S. economy faces a complex outlook as it balances a softening labor market with the need to curb inflation. Despite these economic shifts, the real estate market has shown remarkable resilience. With the labor market cooling and concerns over a potential recession, some analysts predict up to three rate cuts this year. Such rate cuts would significantly boost the real estate market in Connecticut, encouraging many buyers to enter the market from the sidelines, which would likely lead to higher home prices.
Norwalk Real Estate Market - July 2024
Single Family
The Norwalk real estate market for single-family homes shows significant activity. The market type is firmly in the seller's market category, with 1.61 months of inventory, a 6.94% decrease month-over-month. The median sold price for single-family homes has increased by 18.84% from the previous month, now at $880,000. Homes are selling at 107% of the asking price, with an average of 23 days on the market, reflecting a strong seller’s market.
Condo
The condo market in Norwalk also displays strong performance. The market is categorized as a seller's market with only 1.37 months of inventory, a 10.46% decrease month-over-month. The median sold price for condos is $419,000, up by 7.64% from the previous month. Condos are selling at 106.5% of the asking price, with an average of 21 days on the market, indicating a robust seller’s market as well.
