The Connecticut real estate market always seems to be changing and shifting. The wild events that have taken place over the past several years have made an obvious impact on the local housing market. If you’re planning to buy or sell property in the area over the next several months, you may have questions about how the current state of the market may impact your pursuit. This article will have answers to many of the questions you’re looking for. If you can’t find the information that you need in this article, somebody from Sell Save Move would love to assist you further.
How hot is the Connecticut Real Estate Market right now?
Home prices are beginning to stall throughout the nation. After multiple years of rapidly rising average sales prices, the Connecticut real estate market is starting to turn. Many potential buyers chose to take advantage of falling interest rates in 2020 and 2021. Sellers were able to charge much higher prices for their homes and would often field multiple offers above the asking price with waived contingencies. The market remained hot during the first half of 2022, but things began to slow during the third quarter. Some Connecticut cities are still faring well and seeing gradual price increases. Fairfield County towns such as Darien and nearby Greenwich, CT, Stamford, CT and New Canaan, CT have continued demand and very low inventory. As such, the towns are seeing more cash buyers and steady higher prices for homes.
What’s the reason for the market stall?
The primary reason for the current state of the housing market in Connecticut is rising mortgage interest rates. Some home buyers were able to secure a mortgage with an interest rate as low as 2% during the first few months after the onset of the pandemic. Lately, interest rates have been closer to 7%. This results in a difference of hundreds of dollars each month and tens of thousands of dollars over the loan's entire life. Inflation is also as high as it’s been in decades, and many potential buyers are struggling with rising living costs.
CT Housing Market Forecast for 2023
Usually, what goes up must come down. Interest rates have risen in the past, and they have always been quick to come down to a more manageable level. It is unlikely that rates will drop to the pandemic levels, but buyers could hope to see some stabilization around the upper 5’s to lower 6’s. It’s impossible to predict when this might happen, though. Some people will panic about the possibility of another housing market crash. 2008 is a distant memory for many people, but others are still haunted by the possibility of history repeating itself. This is unlikely to happen in 2023. Many experts point to the mortgage delinquency rate as a primary piece of evidence that shows where the market might be headed in the near future. The mortgage delinquency rate is nearing historic lows, which indicates the housing market’s ability to weather the storm and come through the current recession.
Should I buy a home in 2023?
Buyers who choose to shop for real estate in 2023 will benefit from prices that aren’t expected to rise much as prior months. That said, they should also be prepared to pay higher interest rates and invest significant cash into a down payment at a time when inflation and cost of living are both on the rise. There are still benefits to shopping for a home right now, even with these factors in play. If you choose to buy now, you will lock in an interest rate and protect yourself from the possibility that they could rise even more. You will also begin to build equity in a home rather than spending money on rent if you aren’t currently a homeowner. Ultimately the decision to buy or not to buy comes down to your own unique financial situation. If you’re considering buying, a great first step is to speak with a lender about the loan you might pre-qualify for. Some realtors only work with buyers who have been preapproved, and sellers often ask to see a preapproval letter before agreeing to a deal to sell their home.
Should I sell a home in 2023?
The answer is YES. Anyone who sells a home in 2023 will likely make less for their home than what they could have made during the first half of 2022. However, prices will still be considerably higher than they were before the pandemic. There’s still a chance you could make a substantial profit on your home if you choose to sell. If you’re considering selling, an excellent first step is to reach out to your realtor and ask if they can prepare a Comparative Market Analysis for you. This report will show you what prices other homes have sold for in your area in recent months. It will give you a better idea of the price you could ask for if you sell your home.
Who can help me buy or sell in 2023?
Sell Save Move is a five-star rated brokerage specializing in luxury real estate. They pride themselves on their cutting-edge platform which allows Sellers to choose their marketing package and commission. Sell Save Move allows Seller’s choice without compromise, providing savings and outstanding marketing and service. They will provide you with top-level expertise and marketing if you choose to work with them. They would be honored to have the opportunity to earn your trust.