Summer is Hot for Real Estate Activity, Too

Normally, most of the country sees a slowdown in real estate activity in July and August.  Although the days are longer, and some people have more time, vacations and outdoor excursions seem to take up the slack.  This year, though, we are seeing otherwise.

Buyers found ways to cope with the spring market, and managed to bid on, and buy, whatever was available.  Lack of inventory, both from COVID fears and for other reasons, put a damper on transactions in most places.  We, and others, sold almost everything we could list, but there still wasn't enough supply to go around. That means that there are plenty of potential buyers out there, even in the heat of summer.  Sellers should not wait until Labor Day to list.  If we could have this kind of group of buyers every year, we would all prefer to spread the season out, and avoid the crush of May.  This year, with school openings up in the air, and not the same everywhere, there isn't the same need to try to move during summer vacation.  In fact, there may be sufficient incentive to choose certain towns now, specifically for their school systems and operating procedures.  

I just went blueberry picking for the first time this summer.  While I do love blueberries, the experience has changed from open picking to a few specific bushes per picker, out of necessity.  It does seem, however, that maybe looking at houses would be as pleasurable as my outing was, and might lead you to the home of your dreams. So maybe that staycation can be put to good use!  Remember, summer is now for sales, and there's no time like the present to begin selling or buying. 

10,000 People Change Their Addresses to Connecticut

It's so nice to be popular!  Poor Connecticut, which has been lagging in most economic measures over the past decade, has now come out on top in two recent metrics:  It's the most improved state for COVID in a recent statistical analysis; and its population is on the way up, with 10,000 New Yorkers joining the ranks of the Nutmeg State.  

Our little state packs a big wallop, when it comes to outdoor space, forested land, beaches, and low density in most places.  We also enjoy, of course, easy access to the greater NYC metro area.  Those factors have combined to make this at least a temporary home to many displaced New Yorkers.  They are looking at, renting, and buying property in most counties.  All of us in real estate can feel the activity, and we are also noticing all the New York license plates on the roads.  Inventory of listed properties is very low, and multiple offers are evident at many price points.

Not only is this a great place to live, but we also seem to have done an excellent job in bringing down the rate of infection for the coronavirus.  This adds to the feeling of safety and serenity that is making people snap up our property.  After a long, quarantined spring, it's nice to think that all the hibernating paid off.  

And brought us an economic boost as well.  Every real estate transaction has a multiplier effect on the economy, and will help to make up for the slow second quarter.  In fact, although we are expecting a slow summer for tourism, maybe that's because the tourists have decided to move here,  instead of just visiting.  That bodes well for the value of our homes, our commercial property, and our tax base. So, whether you are thinking about becoming a Nutmegger, or just renting a place for the season, welcome!

Current Absorption Rates

Explanation of absorption rate: The rate at which available homes are sold in a specific real estate market during a given time period. If you look at the number for Branford you can say “If market conditions do not change and if no new listings come on the market it will take 5.3 months for the current inventory to sell at the current pace of the market. A balanced market’s absorption rate is typically between 5 - 7 months.”