When Will The Home Price Escalation Stop in Connecticut?

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

When Will The Home Price Escalation Stop in Connecticut?

Our state is not unique for the rise in home prices. All over the country communities are seeing similar price escalation month over month and year over year. Double digit price increases within months are not uncommon and even when putting a house on the market, agents and sellers wonder if this will be the house that doesn't sell.

The reason for the increase in prices or the drop in inventory cannot be thought of as from a single cause. Mortgage rates have been holding steady for months and even a slight increase in rates does not seem to have deterred buyers from chasing new listings when coming on market.

Inventories are at an all-time low and have been for months. The market had always been considered a neutral market if inventory levels were at a level where buyer demand would take 6 months to deplete the inventory. Any inventory level above a 6-month supply would be considered a strong buyer's market and allow for multiple choices and more value for the dollar.

Accordingly, when the levels would fall below a 6-month supply of homes, the shift would be to a seller's advantage and buyers would find it difficult to get their ideal home and start to settle for less just to be able to purchase a home. In the current market, inventory levels are severely low with many areas holding homes for less than a month, and with a particularly good-looking home, within days at prices well over asking.

So where are we going in the New Year?  New listings are still coming on market although that may slow down a little over the Holiday season.  Mortgage levels are still very affordable so no issue there. People are starting to get back to work after being off for a variety of reasons because of the Pandemic. It's possible that more work from home workers will maintain the continuation of the demand as they look for homes with more space.  Renters will also find it to be a challenge to get larger spaces as well.

The New Year will most likely see a continuation of the housing boon. Elections next year are mid-term so the flow of the economy will be a strong barometer as to how the government will be set up for the next 2 years.

In the meantime, if you are thinking of buying in Central Connecticut, I can help with that. I can also help get your house listed and offer free market evaluations to determine best asking price.

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When Will The Home Price Escalation Stop in Connecticut?

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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

 

Ed Silva  Mapleridge Realty, LLC,   203-206-0754

Comments (6)

Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

Great info, thanks for the share. Bill 

Dec 02, 2021 02:34 PM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It seems that there are many people waiting for the increases to stop and are hoping that prices will eventually go back down.  I am not sure they will go back down much tough.

Dec 03, 2021 04:17 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

An easy-to-understand explanation of market conditions and what's causing increasing home prices, Ed. Prices will go down when demand goes down and/or inventory goes up.

Dec 03, 2021 05:55 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Families on the move will appreciate your local real estate reports.

Take care and be safe.

Dec 03, 2021 06:31 AM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Ed- just as you don't want to "game" the stock market, you don't want to do that either when it comes to buying a home. If you want to buy or sell, speak with an experienced local agent like yourself first. 

Dec 03, 2021 12:41 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ed I have not found a crystal ball yet that can accurately predict the housing market.  What we know is what needs to happen for home prices to stop increasing, but when will those things will happen, the crystal ball does not have an answer.  The only thing we can be sure of is what the market conditions currently are, and that is prices continue to go up with no signs of that changing in the near future.

Dec 03, 2021 02:33 PM