Real Estate Closings in Greater New Haven vs. Last Year

We are in uncharted territory, as commentators remind us every day on every subject.  None of us knew what would happen to the real estate market during the pandemic.  At the beginning in Connecticut, the visits and offers really slowed down, but closings sped up--there was a big effort on the part of all parties to get things closed before the State shut down.  March was very busy on that metric, compared to other years.

When closings are charted week by week, results are only so useful, because one week versus another can be very random.  However, we can tell over the past four months that people adapted to the new normal.  After the initial bump, there was a big dip, which was followed by ups and downs throughout the period.  In general, the higher the price range, the better the closings held up. At most of the higher price levels, this year's closings exceeded those of last year during the past four months.That would be consistent with the observations and speculations that suggest that great numbers of NewYorkers are buying residential property in Connecticut, as our real estate seems very inexpensive to them.

While overall that is true, New Haven County supposedly did not get a bump from New York, nor did New London.  Anecdotally, we do believe that people are looking in our area.  If that's combined with the very short supply of listings, it makes for a vibrant market, and one far better than we expected for this spring.  And we expect that to continue, at least until (and unless) there is a second wave in the fall.  Anything that creates a sense of time pressure, be it weather, interest rates, or the possibility of further lockdown, will improve the market in the short run.  One of the biggest problems of the past decade was the sense on the part of buyers that they could take all the time that they wanted to decide, and that, as on Tinder, new choices would continue to appear, while previous ones would remain available.

Now that we know that's not true anymore, buyers are more serious.  When you add the fact that looking today is not without risk to health, there are many fewer idle lookers.  That has turned out to be a big boon for our industry; since we don't get paid for our time, we love any reason for buyers to be driven to contract faster.  Some want to sell and move while they can, while others are motivated to be in someplace where they can nest and telecommute in any future virus waves.  Those buyers also seek lower density, and value outside space, which helps us here as well.

So, in the main, we have adjusted to a new way of doing business quite well.  Market conditions were favorable for keeping sales up, and our region, with its concentration in higher ed and medicine, is fairly protected from the broader economic issues facing the whole country. Those relocating here from other parts of the world had already accepted offers, which were honored, so they needed to move. Our low prices attracted investors, too.  All in all, a good report for real estate prices and activity in Greater New Haven.



Keep Your Expectations Low

Remember the old phrase that "it's not over til the fat lady sings"?  Real estate transactions are like that often.  Things happen, and they happen right up until the papers are signed.  We have heard -almost- everything, but new stories keep popping up.  There are issues of sellers getting cold feet, buyers getting sick, or having children who get sick, sudden job losses, sudden divorces or separations or reconciliations, financial issues arising, and nearly anything else that you could imagine.

That's why a calm attitude and a good sense of humor both go a long way toward making the experience better for everyone.  Often it's the person who insists upon locking down the dates, who in the end can't meet them.  Or the seller who won't let the buyers postpone the closing, and then is the one who can't get out in time.  Given all of this, and more, I recommend that all parties expect at least one thing to go wrong (or maybe two or three things), so that they aren't thrown by a sudden change.  I would say that it's less the exception than the rule that something in your new home will stop working, or start leaking, right after the closing.  If you take that in stride, you'll be a lot happier.  Try to make it into a good story, that will get everyone laughing at a future dinner party or family reunion, and see whether anyone else can top your entry into a contest.  In our family, although it's not a real estate tale of woe, we can recount the day that one car caught on fire, one child got hit in a different car, by someone turning illegally, while the other child broke her arm, and the dog ran away.  You can't help but laugh when you tell it!

So, if you are ever annoyed because your real estate agent is not outraged by a request, a change, or a problem, now you know why.  We have memories of worse!

Tough to the Finish

We had a buyer panel a couple of weeks ago, with people who'd bought their houses from us recently. I was surprised at the number of problems that came up right before, or even during, the closing. Two of the three were packed and ready to move before they knew whether or not the other party would be able to perform.

While we in the business all know that the transaction doesn't end with the signing of the contract, even we didn't quite realize that the obstacles in a sale are moving farther and farther down the pipeline. It used to be that the big hurdle was getting the contract signed. Then it was the inspection, and renegotiations after that. Next came the appraisal. Now it's the financing, which is often so problematic that the contingencies last right up until the closing day.

The good news is that all the transactions went through, even though one poor buyer started with six weeks to move and ended with two days. It was also good news that no one thought that his or her Realtor was to blame. It shows, however, that moving (no matter what we tell you) is hard to make easy. Leave plenty of time; expect things to go wrong; don't sweat the small stuff; and keep a sense of humor!