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.



Our Changing Sales Calendar

The rule in residential real estate has always been that people look at homes in the spring, and close and move in the summer, so that they can begin a new school year on time.  That cycle has worked well for sellers, who can then avoid fixing up or showing their properties in bad weather, so they get their homes ready in early spring, list in May, and move in midsummer. 

With fewer school-age children in the State, and more flexibility, this seasonal certainty has begun to change, especially near universities and hospitals. Those two categories work on a fiscal year, usually from July to June. They typically make their offers during the early part of the year, and get answers by early spring.  That means that, during the period when people are considering offers in and around New Haven, there is very little available and on the market.  This can lead to frustration, but it can also be good news for sellers who have their houses ready to go in late winter. 

Every year, I listen to agents say in February and March that they have nothing to show relocating families.  Every year, I tell agents to remind folks of this fact, and to get listings sooner.  Now we have proof, since we got a report of our website hits over the past 52 weeks.  Surprisingly, the highest number of unique visitors came in---drumroll, please--late January!  That continued into early March, and then settled down, before dropping to lower points in midsummer and late fall. 

So why not aim to have your property listed when the most potential buyers are looking?  We know that weather is a factor, but internal decluttering--the biggest issue for most people--can be done in any season, and why not do it when going outdoors is so much less tempting?  Internet etailing has taught us that the smartest sellers give the buyers what they want, when they want it.  In this case, that means that they'd like more choice earlier in the calendar year.  While some may be willing to wait until the traditional season, this really is a case where the early bird catches the worm!

Should you list your home early this year?

We are finding that levels of available listings in certain areas and price ranges are uncommonly low these days.  Most people wait for a spring market to list their home, thinking that most buyers are looking then, so their chances are greatest for selling at a good price.  Although this is true, there is another alternative, especially for homes that are in less than perfect condition, or in less than optimal locations, and that is to list when there isn't much competition.  Homes that are listed when someone needs or wants to buy will stand out if they are in a smaller number of new listings.

This is particularly true in our market, as we are so dominated by educational and medical institutions.  Those places work on a different calendar than most of private industry, and their season for making offers is earlier.  That means that, in Greater New Haven, early February kicks off the spring market for faculty and doctors beginning on July 1st.  That is substantially different from what sellers read in national media reports, where May 1st begins prime selling season.  Since buyers in our area are out sooner, they are searching when a smaller pool of choices is presented to them, and they may view new properties to the market more favorably than a bigger group of buyers would view one of a much bigger group of new listings, later in the year.  Many buyers tell us that they are expanding their parameters due to short supply, and a short timeline.  Your home can be considered, when it normally would not be, by those who need to make a move now.

What does that mean for sellers in our region?  If you've been thinking about selling, and you don't have a lot of work to do to your property before you list, you might consider listing in the next month, and having your home exposed to buyers from around the country, who are looking now to move in May or June, instead of the traditional July or August.  If you do have work to do, don't wait another minute.  There is always more to do than you think, and it always takes longer than you think to complete.  (Another advantage to listing sooner:  Workmen are easier to hire in the off season.)  Take advantage of time, and make it to your advantage.  Act now!