Norfolk bucks a national trend

by Lindsey Pizzica Rotolo

While existing home sales experienced a dramatic slowdown throughout the country in 2006, Norfolk’s real estate market didn’t fall off much from 2005.  “It’s been very slow lately, but overall, 2006 was not a bad year,” says Betsy Little, owner of Betsy Little Real Estate.  Little sold just a few less houses last year than in the previous year.  “Homes that are priced right sell quickly in Norfolk,” says Little, “I don’t expect that to change anytime soon.”

Rosalee Fanelli of Raynard & Peirce also did well in 2006, reporting that her sales were actually ahead of 2005.

Although Norfolk’s existing home sales were steady in 2006, there are still a large number of homes on the market.  Up until a couple years ago, ten to 15 houses were listed at any given time.  Currently, there are 25 homes on the market in Norfolk.

Tom McGowan, of Elyse Harney Real Estate, attributes the large number of homes for sale to the high appreciation rates in recent years. The rate has been as high as 84% at one point. “Some sellers still believe they can price their homes as if it’s 2004,” says McGowan, “although I’ve noticed some adjustments being made in recent months.”

Fanelli agrees with that assessment, “A lot of homes in Norfolk had been listed for a long time,” she says, “and then got caught in the downswing of the market.  Now, most sellers have noticed the cooling off and started to price accordingly. However, the over-$1- million crowd can afford to sit on high asking prices and test the market.”

The prices for the 25 homes for sale in Norfolk range from $164,900 to $9.5 million, with eight homes offered at over one million dollars and eight homes offered at under $300,000.  Five of the homes are located in North Norfolk, seven in South Norfolk and thirteen in town.

The price range for the 20 homes that were sold in Norfolk in 2006 ran from $184,900 to $1,250,000.  Thirteen are within two miles of the town center.  Also of note, only three of the sellers received their asking price.  On average, homes in North Norfolk have sold for one percent below the asking price, three percent below in South Norfolk and six percent below the asking price in town center locations.

As for sales in land, 17 pieces of land were sold in Norfolk in 2006, ranging in price from $25,000 for a two-acre lot in South Norfolk, to $450,000 for a 5-acre parcel on Doolittle Lake.

“It’s a buyer’s market,” according to McGowan, “and the problem with that is that buyers have the luxury of being very picky. It’s like dragging them through the mud to get them to the closing.  They are very critical during the inspection process and expect that all items not to their liking are corrected or the asking price be dropped accordingly.”

McGowan has seen a significant drop in sales from the 2005 levels, but believes the Norfolk market will never experience severe lows.  “There will always be people re-locating to this town, whether they’re buying second homes, retiring to the country or moving from elsewhere in the area,” he says. “I have listings all over Litchfield County and I believe Norfolk is the most attractive town around.  In terms of natural beauty and quality of life, nothing beats Norfolk.”