Norwalk, CT February 2026 Real Estate Market Report: Insights & Forecast
Assembled by: Judy Michaelis, 203-247-5000
Market Trends Report
Overview
The overview below shows real estate activity for January 2026. You will see data comparisons between January and the previous month, the last three months and January 2025.
| Overview | YTD Avg. | January | December | Oct. – Dec. | Jan. 2025 |
|---|---|---|---|---|---|
| New Listings | 24 | 24 | 16 | 32 | 37 |
| Average Sales Price per Square Foot | 433 | 433 | 436 | 449 | 406 |
| Average Days on Market | 52 | 52 | 56 | 51 | 54 |
| Number of Properties for Sale | 46 | 46 | 67 | 91 | 75 |
| Average List Price | $911,917 | $911,917 | $804,924 | $871,047 | $791,800 |
| Median List Price | $642,500 | $642,500 | $690,000 | $718,000 | $685,000 |
| Average Sales Price | $942,117 | $942,117 | $948,132 | $1,051,834 | $934,905 |
| Median Sales Price | $834,500 | $834,500 | $685,000 | $758,833 | $725,000 |
| Sales Price / List Price Ratio | 104.73% | 104.73% | 102.91% | 102.13% | 101.95% |
| Number of Properties Sold | 30 | 30 | 50 | 50 | 39 |
| Month’s Supply of Inventory | 1.53 | 1.53 | 1.34 | 1.84 | 1.92 |
| Absorption Rate | 0.65 | 0.65 | 0.75 | 0.57 | 0.52 |
Average & Median Sales Price
The median sales price in January 2026 was $834,500, up 21.82% from $685,000 from the previous month and 15.10% higher than $725,000 from January 2025. The January 2026 median sales price was at its highest level compared to January 2025 and 2024. The average sales price in January 2026 was $942,117, equal to the previous month and equal to January 2025. The January 2026 average sale price was at its highest level compared to January 2025 and 2024.
Sales Price / List Price Ratio
The sales price/list price ratio is the average sale price divided by the average list price for sold properties expressed as a percentage. If it is above 100%, homes are selling for more than the list price. If it is less than 100%, homes are selling for less than the list price. The January 2026 sales price/list price ratio was 104.73%, up from 102.91% from the previous month and up from 101.95% from January 2025.
Number of Properties Sold & Absorption Rate
The number of properties sold in January 2026 was 30, down -40.0% from 50 from the previous month and -23.08% lower than 39 from January 2025. The January 2026 sales were at its lowest level compared to January 2025 and 2024. Absorption rate is the avg number of sales per month divided by the total number of available properties.
Average Days on Market
The average days on market (DOM) is the number of days a property is on the market before it sells. An upward trend in DOM tends to indicate a move towards a buyer’s market, a downward trend tends to indicate a move towards seller’s market. The DOM for January 2026 was 52 days, down -7.14% from 56 days from the previous month and -3.70% lower than 54 days from January 2025. The January 2026 DOM was at a mid level compared with January 2025 and 2024.
Average Sales Price per Square Foot
The average sales price per square foot is a more normalized indicator for the direction of property value. The sales price per square foot in January 2026 was $433, equal to the previous month and 6.65% higher than $406 from January 2025.
Inventory & MSI
The number of properties for sale in January 2026 was 46, down -31.34% from 67 from the previous month and -38.67% lower than 75 from January 2025. The January 2026 inventory was at its lowest level compared with January 2025 and 2024. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The January 2026 MSI of 1.53 months was at its lowest level compared with January 2025 and 2024.
New Listings
The number of new listings in January 2026 was 24, up 50.0% from 16 from the previous month and -35.14% lower than 37 from January 2025. The January 2026 listings were at its lowest level compared to January 2025 and 2024.
Judy Michaelis
Prefer the quick version? Here's a snapshot of the January 2026 Norwalk Market Update:
🏠 Strong pricing momentum – Median sales price at $834.5K, up 22% from December and up 15% year-over-year, at highest level historically. Average sales price at $942K, flat monthly and matching last year, also at highest level. Price/sq ft at $433, flat monthly but up 7% yearly.
⏳ Market pace improving – Average days on market at 52 days, down 7% from December's 56 days and down 4% from last year's 54 days. Mid-level pace historically indicates efficient market clearance.
📈 Severe inventory shortage – Only 46 homes for sale, down 31% from December and down 39% from last year. January 2026 inventory at lowest level ever recorded. Months supply at 1.53, also at record low.
📉 Volume declining despite seller's market – 30 homes closed, down 40% from December's 50, and down 23% from last year's 39. Lowest level historically. New listings at 24, up 50% from December's 16 but down 35% YoY to lowest level.
What Buyers and Sellers Need to Know
✨ Sellers: Exceptional seller's market with record-low 1.53-month supply, 0.65 absorption rate, homes selling nearly 5% above asking, and 15% YoY price appreciation at highest level historically. Optimal conditions despite volume decline.
🔍 Buyers: Severe inventory crisis (-39% YoY) creates extreme competition. However, 30 sales demonstrates transactions still occurring. Strong pricing (22% MoM increase) requires decisive action on available properties.
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