Connecticut’s real estate market remains a destination for buyers

Connecticut closed the traditional stay-at-home sales season with transactions down sharply from the 2021 season spurred by the COVID-19 pandemic due to an insufficient number of new sellers to meet continuing buyer demand. to block stores.

Between January and August, about 31,065 homes sold in Connecticut according to a monthly update from Berkshire Hathaway HomeServices New England Properties, about 6,000 fewer than the number sold in the first eight months of 2021. Sales August were down 17% from the previous year, the last month for families to move in order to enroll their children in school systems in time for the start of the school year.

September has traditionally marked the beginning of an autumn lull in real estate. Last year was an exception, however, as apartment dwellers continued to beat the bushes in their rush to leave town.

The CEO of Berkshire Hathaway HomeServices New England Properties expects an active market in the fall, but not on par with last year when sales continued their momentum through November.

“New buyers are coming into the market,” said Candace Adams, CEO of Berkshire Hathaway HomeServices New England Properties. “Some of them are families – a lot of first-time buyers, renters.”

At $349,000, the price of the median home sold in Connecticut is up 7.4% from the median home in the first eight months of 2021, according to calculations by Berkshire Hathaway. The median home sold in August alone went for $375,000, with more than 40 properties offering such deals across the state, from Stamford to Groton.

On Thursday, mortgage guarantor Freddie Mac released data showing mortgage rates hit their highest level last week since 2008, at 5.89%, more than double their level a year ago. On the same day, the chairman of the Federal Reserve notified that the Fed would stay the course on raising rates in an effort to lower prices by reducing demand for loans.

“I really think we need to act outspokenly, strongly, as we have done and we need to keep going until the job is done,” Fed Chairman Jerome Powell said at a forum in line sponsored by the Cato Institute. “The longer inflation stays above target, the greater the risk that the public will start to see higher inflation as the norm.”

In a “shrinkflation” study last month on the impact of inflation on the housing market, Zillow tracked the buying power of homebuyers spending at least $1 million, as evidenced by size houses they were getting. The Hartford area led the nation on this front, with buyers there securing almost 4,900 square feet on average among homes costing around $1 million, plus or minus $50,000.

If rising interest rates and headline inflation are impacting the mortgage market, it has yet to be evident in Connecticut’s summer transaction numbers or prices, compared to the spring market. Adams said that’s because shoppers stay motivated for a variety of reasons and keep checking out new listings as they hit the market.

“They need a home, they’re on the market now,” Adams said of buyers. “You can buy when interest rates are high and refinance when they are low. Everything washes away.”; @casoulman

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