Coastal Connecticut’s real estate boom is creating unexpected ripple effects inland, with secondary markets like Waterbury seeing unprecedented price appreciation and competition, according to one veteran Connecticut agent.
Rudolph Perkins, a Coldwell Banker agent with over two decades of experience in the Connecticut market, says Waterbury properties are now routinely selling above asking price, a dramatic shift for this historically industrial market. “Properties are selling about 2% above the asking price. And in some cases, for a hot property, you could get maybe 6% over asking price,” Perkins notes.
According to Perkins, this surge stems from a domino effect of coastal market appreciation. “Stanford became a very prominent city…property values went through the roof, and it was only a matter of time before that trend would continue up the line to Norwalk all the way up to Bridgeport,” he explains.
The price escalation in primary markets has been dramatic. “I sold a guy a house in Bridgeport five years ago…for like 350,000 and now a three-family home in that area is going for like 600,000…in some cases people are asking for 700,000,” Perkins observes.
Despite the price appreciation, Perkins points out a crucial dynamic that investors should consider: Waterbury faces significant economic headwinds. “Basically, there’s no jobs,” he states frankly. This economic reality creates an unusual market dynamic where “31% of home buyers are looking outside of Waterbury” even as prices rise.
Despite these challenges, Perkins sees compelling opportunities for certain types of investors. “What’s happening is most of the folks who are buying into Waterbury multifamily units…they’re not living there. Most of them are probably living in New York or as far away as Bridgeport. But because the prices are still competitive, you can get more for your money,” he explains.
For larger investors, the opportunity may be even more significant. “There are big opportunities for bigger investors who want to buy multiple units, say a whole portfolio, 20 units, 30 units. You can’t beat those prices anywhere,” Perkins argues.
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