Is it still a seller’s market today in Connecticut? As experts in the Connecticut real estate market, we get asked this question a lot.
The answer isn’t as simple as yes and no.
The State of the Market for Buyers in Connecticut
The last few years has been brutal for home buyers. Inflation has caused home prices to go out of control. Sellers could ask for an arm and a leg and buyers would give them two of each! Then when the Fed raised interest rates hard and fast it became impossible for anyone other than the rich and richer to buy a house. In a lot of states out west home prices have fallen by as much as 30% with many recent buyers underwater on their properties. Still Connecticut has ignored what was going on out there.
But it looks like that booming market is starting to fade here in Connecticut. Inventory has dropped to only a handful of properties for sale. Buyers are backing out of offers they were once bidding over asking for 3 months earlier. They are being picked and sellers are starting to sweat. But its important to know what that means if you are currently a buyer or seller right now.
First off, it really depends on the property type and location.
Single-family homes in great locations that are priced well have been flying off the shelves. Duplexes, Triplexes and other Multifamily houses are being scooped up by investors all across Connecticut. There’s a lot of demand in the market for certain areas, while others can seem like ghost towns.
Buyers are often looking for the same thing – good neighborhoods, access to transportation, shopping, good schools, close to work, etc. Properties that deliver all these are definitely a hot commodity. Sellers with a highly desirable property are in control of the market.
But for condos and townhouses – especially those a little off the beaten path, or with some funky features – it can be quite a different story. Prices were down in certain areas with HOA fees almost doubling and some homes being in war zones in Connecticut, but seem to be rebounding as the rental market increases for AirBnbs and visiting nurses.
Investment properties are in demand. The massive amounts of cash flooding in from big corporate buyers and small investors that got on the band wagon to invest in US real estate learning from sites like BiggerPockets have impacted the Connecticut market in unique ways.
Overall, those people in a position to pay cash for properties have been picking up the good deals in the marketplace where the regular home buyer has to pay high interest rates on a mortgage to buy a house.
Lots of sellers are trying out speculative high prices just to see if anyone bites, but most investors are walking away from deals that don’t pencil out.
Financing is still a major obstacle for buyers. Banks are being incredibly strict now as rates are going up, sometimes changing their terms at the last minute. It’s not uncommon for approved buyers to get their loans pulled right before closing escrow, although it’s getting better than it was just a few years ago during COVID.
Overall the markets remain incredibly polarized – there is a lot of action off market before houses ever get listed on the MLS. Buyers are trying to find deals that are hard for them to afford and sellers are demanding higher prices than 2022 when mortgage rates were under 3%.
Sound confusing? It is. But We Can Help.
There’s a lot of shakeup in the US economy still taking place, and the markets are moving fast in lots of directions at once.
We’re investing in Connecticut because we believe in the community and the people here.
If you need to sell a property near Connecticut, we can help you.
We buy properties like yours from people who need to sell fast.