Everywhere in the country, there is talk of a red hot housing market, for many reasons. Low interest rates, pent up spending and demand, and pandemic desire for more space. Supply and demand, therefore, have gotten way out of whack. Today, we circulated an article featuring 76 full-price offers on one home.
That's true in many regions, but what is happening in Connecticut? Even that needs to be broken down by county. Fairfield County is booming, and is absorbing many of the 24,000 people that have moved to Connecticut in the past year. New Haven County is seeing some of that movement. West Hartford, one of the most popular towns in Hartford County, is actually down 8% in the first quarter. Of course, this can all be explained by the old adage: Location, location, location. The closer to NYC, the higher the price, and, now, the hotter the market.
Many families moving here are counting on working from home for at least some of the time going forward, but they want to be close enough to commute when necessary. For now, many are avoiding public transportation, but that number will diminish as vaccinations increase. Prices are rising rapidly in many towns near the NY border.
Despite all the reasons for the increase in prices listed at the beginning of this post, the real driver is inventory. Many sellers were burned in earlier attempts to sell, or haven't found a place that they can go. They are tempted by the demand by buyers, knowing that they may get more than they expected. However, they also know that when you sell high, you usually turn around and purchase high as well.
That shouldn't matter. People should make decisions based on lifestyle, personal preferences, and proximity to friends and family, and let the investment side of the equation take a back seat. Since selling and buying in the same market is a wash as far as prices go, it should come down to individual choice. And, if you want to choose a new home, this is certainly the time to do so. The rapidity of the selling cycle may make life intense for a while, but the uncertainty is short lived, and the benefits of moving last as long as you are in the new property.
So the market comes down to the sellers--will they provide a spring season supply? We very much hope so. Sales depend on it.
