CONNECTICUT
Home Sales Down, Average Prices Up
Home sales are down 12.1% year over year, with October 2023 at 2,966 compared to 3,373 last October. Sales are down across all categories.
- Single families: 2,620 (2022) | 2,305 (2023)
- Condominiums: 753 (2022) | 661 (2023)
Average sales price has increased by 12.2% compared to last year, now at $514,044 from $458,091. Prices increased across all categories.
- Single families: $506,346 (2022) | $560,286 (2023)
- Condominiums: $290,303 (2022) | $352,789 (2023)
Homes Listed For Sale:
The number of homes listed is down by 1.4% when compared to October 2022, as want-to-be sellers are concerned about jumping into the market.
- 2023: 3,493
- 2022: 3,541
- 2021: 4,509
Pending Home Sales:
The number of homes placed under contract is down by 7.4% when compared to October 2022.
- 2023: 2,991
- 2022: 3,230
- 2021: 4,529
Data provided by SmartMLS then compared to the prior year.
What’s Happening in the Market?
Mortgage rates officially went over 8% in the month of October according to Mortgage News Daily. In Connecticut, the number of homes sold is down 12.1% when compared to October 2022. The average sales price has increased 12.2%. The number of homes listed was down only slightly by 1.4% when compared to this time last year. The number of homes listed is inching closer and closer to 2022 levels which is a good indicator of market activity.
What does this mean for Buyers?
- October proved to be a challenging month for buyers, with mortgage rates reaching levels not seen for more than 20 years, and inventory levels still unable to support demand.
- With these factors in mind, affordability and availability of homes remain chief concerns amongst active buyers, especially with home prices still elevated when compared to previous years. Important to note that although home prices are rising, they aren’t rising nearly as much given market conditions. This decrease in overall consumer affordability is what’s keeping housing prices from soaring out of control.
- Make sure you are staying prepared and informed! Mortgage options such as buydowns or assumptions could be great options for buyers in this market.
- In challenging markets like this one, working with an experienced buyer’s agent will prove helpful to make sure you are getting the most out of the home buying experience!
What does this mean for Sellers?
- Given that the decrease in homes listed year over year was slight, this could indicate that want-to-be sellers who have been on the sidelines due to mortgage rate and inventory concerns are getting back in the game. Despite their concerns about the market, sellers may have needed to list due to changing life circumstances such as relocating for work, divorce, growing families, downsizing, etc. – sometimes change is inevitable! In this current economic environment with inflation, ongoing international conflicts, etc., it is difficult to predict what the future may hold, so the best time to get your real estate goals accomplished is when the timing is right for YOU!
- If you are planning on listing your home, know that pricing is crucial in this market to ensure that you are creating the most demand for your home which ultimately gives you more negotiating power.
- Since many sellers are also buyers, pricing competitively will allow you to set favorable terms which is critical for those in sell/buy situations.
What’s next?
Typically, market activity starts to cool as we head towards the end of the year due to the holiday season, winter weather, etc. However, homes DO sell during the holidays! Buyers who continue looking during the holiday season are far more serious and motivated than at other times of the year when there is an increase in casual lookers. For sellers, this means you are more likely to receive quality offers on your home, and for buyers, it means less competition! Don’t miss the opportunity that lies ahead in these next couple of months, especially if you are looking to buy or sell before the end of the year!