“Connecticut homes are hot commodities on the market! The state’s great location, excellent schools, and fantastic neighborhoods make it a popular place to live,” says Steve Schappert, The Connecticut Real Estate Broker. Connecticut is a beautiful state that has a lot to offer, from its stunning coastline to picturesque rural landscapes. With the demand for homes increasing, prices are rising, making now the perfect time to sell or invest in a Connecticut home. If you’re looking to buy or sell a home in Connecticut, it’s important to understand the current market conditions. In this article, we’ll take a look at some key metrics and trends for Connecticut homes. Let’s dive into the market analysis to see what’s driving the high demand.
Median Sales Price of Connecticut Real Estate Over Last 3 Years
Connecticut’s median home sales price has been steadily rising over the past few years. As of January 2021, the median home sales price was $290,000, up 10.7% from the same time last year. This is good news for sellers, as it indicates a strong demand for homes in the state. We have seen a steady rise since 2021 with the new median sales price being $342,000.
Average Sales Price of Connecticut Real Estate Over Last 3 Years
Steve Schappert explains the difference between average and median. What is an average? Take a group of numbers, add them together and divide by the total numbers in the list. For example, 1,2,3,4,5, add them together and you get 15. Then divide 15 by 5 because there were 5 numbers in the group, the average is 3. The median is simply the middle # in a set. For example 1, 5, 13, 22, 45, 66, 77. There are 7 numbers, the # in the middle of 2 groups of 3 is the #13. The average for this group of numbers would be 32. In real estate, it is critically important to know the difference. Most important to understand is that the numbers refer to the market as a whole, not your home in particular.
New Connecticut Real Estate Inventory over the Last 3 Years
Connecticut’s housing inventory has been on the decline in recent years. As of January 2021, there were 8,966 homes for sale in the state, down 36.7% from the same time the previous year. This means that there are fewer homes available for buyers to choose from, which could lead to increased competition and higher prices. Schappert said, “Note the drop from 2021 to 2023 a picture is worth a thousand words and should give you a fair idea of how the market is headed. Usually, the solution is to build more houses but the cost of construction has skyrocketed creating a bottleneck.”
Connecticut Homes For Sale Over Last 3 Years
Closed Sales of Connecticut Homes Over the Last 3 years
Despite the decrease in inventory, Connecticut’s sales volume remained strong. In January 2021, there were 2,493 homes sold in the state, up 17.4% from the previous year. “Interest in buying homes in Connecticut throughout covid remained strong but the graph doesn’t lie. Closed sales have plummeted over the last 2 years so prices are likely to continue to climb. One thing to remember is that from the collapse in 2008 to the spike in 2021. The Connecticut market never rebounded. We are overdue for price increases,” said Schappert.
Average Days On the Market for Connecticut Homes
Connecticut’s homes were selling quickly, with an average of just 56 days on the market in January 2021. This is down from 75 days on the market in January 2020. This was great news for sellers, as it indicates that homes are in high demand and buyers are eager to make a purchase. Notice where the average is today and be prepared to make quick decisions. “This is not a market that is good for the faint of heart you need to work with a master negotiator that can supply you with the information you need to make critical decisions”, says Schappert.
Months Supply of Connecticut Homes
Connecticut’s monthly supply of homes has been on the decline, with just 2.3 months of supply in January 2021. This is down from 3.6 months of supply in January 2020. This indicates that there is a shortage of homes available for buyers, which could lead to increased competition and higher prices. “I could give you a long-winded analysis on the market from 2021 till now but I’m gonna keep it simple and suggest a glance at the graph above”, said Schappert. Glass half full or empty? Would you like to buy while the market is rising or wait 14 years to see a penny increase in your home value.  Sitting on the sidelines can cost you a fortune and many will be boxed out of homeownership for a lifetime.
% of List Price For Connecticut Homes Over Last 3 Years
The percentage of the sales price that homes in Connecticut are selling for has also been on the rise. Connecticut’s homes are selling for close to their list price, with an average of 97.1% of the list price in January 2021. This is up from 95.9% of the list price in January 2020. This indicates that buyers are willing to pay a premium for homes in Connecticut. “Keep in mind the % of the list is a moving target. It’s a combination of agents doing a good job pricing the listings and the confidence of the buyer to offer a little more to get what they want. A customer told me today that he is buying the investment property for life and the extra $15,000 over the list on a $230,000 2-family with 6 bedrooms won’t affect his life as much as not buying it.  The agent most likely priced it low to create a bidding war,” said Schappert.
Average price Per Square Foot ( keep In mind this is an average for the entire state of Connecticut)
Connecticut’s price per square foot has also been on the rise. In January 2021, the average price per square foot was $162, up 9.5% from the same time last year. This indicates that homes in the state are becoming more valuable, which is good news for sellers. “The cost of new construction is right about $162 now in 2023, but it doesn’t leave much a profit margin so most builders are reluctant to jump back in. Most of the residential construction that you see is rental housing and mostly housing related to the elderly and disabled that have an added profit margin. The average construction cost for apartment buildings in Connecticut is in the $400-$440 per sf range. Schappert advises spending less and thinking tinyish.”
Dollar Volume
Instant Reaction: Mortgage Rates, May 11, 2023
With inflation falling below 5%, mortgage rates moved lower this week. According to Freddie Mac, the average rate on a 30-year fixed mortgage dropped to 6.35% from 6.39% the previous week.
While fast-rising rent prices remain the largest contributor to elevated inflation, it appears that CPI rent growth has peaked and started to cool. Put simply, rent prices continue to be higher than a year ago but are increasing more slowly than they did the previous month. With this decelerating rent price trend to persist in upcoming months – following the trend of asking rent prices reported by the private sector – inflation will slow down even further, pulling down mortgage rates. This could bring some sighs of relief to many buyers. With a 6% mortgage rate, more Americans can afford to purchase the median-priced home by putting down less than 20%.
Shows To Contract For Connecticut Homes
Connecticut’s “shows per contract” metric is also showing strong demand for homes. In January 2021, homes in the state had an average of 9.2 shows per contract, up from 6.5 shows per contract in January 2020. This means that buyers are viewing more homes before making a purchase, which could be a sign of increased competition. “2022 through this month have shown great signs of stabilization. This is great news for buyer agents that have been working much harder to simply survive in this competitive market,” said Schappert.
Instant Reaction: Jobs, May 5, 2023
“A record number of Americans are working, with another 253,000 net new job additions in April. Compared to the employment peak pre-pandemic, 3.2 million more people are working. The unemployment rate is super tight at 3.4%. Job openings are way above those searching for a job: 9.6 million job openings compared to 5.7 million people searching for one.
Let’s be mindful, however, that employment is considered a lagging indicator and the last economic data to turn. Job openings are 20% lower compared to one year ago. The tight job market is partly due to the nearly 5 million Americans who were in the labor force before the pandemic but are no longer seeking employment. The 3.2 million net job additions over the past three years are averaging 1 million job creations per year, which is only about half of the normal annual job creation.
Directionally, more jobs mean more housing demand. Given the many ‘help wanted’ signs, more jobs will be added in the upcoming months. Should more Americans enter the labor force, an even better outcome can be achieved as more supply will lessen inflationary pressure and lower the mortgage rate.”
Shows Per Listing of Connecticut Homes
In conclusion, Connecticut’s housing market is showing strong demand for homes and increasing home values. While this is great news for sellers, it could lead to increased competition and higher prices for buyers. If you’re in the market for a home in Connecticut, it’s important to keep these trends in mind and work with a knowledgeable real estate agent to navigate the current market conditions.
Steve Schappert Founded, and is the broker at Connecticut Real Estate, The Connecticut Art Gallery and Home & Art Magazine  Steve also designed, built, and shipped a zero-energy double-walled home to Germany. Schappert is an abstract painting artist and has painted over 1300 homes. If you are looking for a creative broker that thinks outside the box and has been a recognized expert for over 30 years call or text 203-994-3950
