The current mortgage rates are posing an affordability challenge for buyers and sellers, reaching their highest levels since early March. The average rates are hovering in the 6-7% range for a 30-year fixed mortgage.
Click to watch.The market conditions have improved recently for buyers. This shift in the market provides you with increased options and a higher likelihood of securing a great deal as other buyers exit the market and more sellers list their properties. Take advantage of this opportunity to find the perfect home for you! To watch Anthony explain more, click here or on the image to the left.
Buyers should remain vigilant and be ready to strike with an updated preapproval should mortgage rates unexpectedly drop, and take advantage of the increased affordability lower rates offer.
Home sales have experienced a decline compared to the past few years, which is expected as the market readjusts after the elevated and frenzied levels seen during the pandemic.
Despite the headlines, prices are NOT crashing. Crashes are associated with high levels of inventory that exceed demand, causing prices to decrease. However, circumstances are currently the opposite, with inventory levels being remarkably low. Buyers will be waiting for a long time if they’re hoping to secure a home for a lower price, and sellers who are waiting to list shouldn’t!
Source: Calculated Risk Blog
This supply-demand imbalance, where demand surpasses supply, has led to an overall increase in average prices in April compared to the previous year. The limited inventory acts as a support for prices, preventing them from declining.
While homes are indeed selling, there is a shortage of listings due to hesitant sellers. As a result, pending sales are decreasing.
The spring/summer market typically experiences increased activity, so those interested in making a move should consider getting themselves and their homes prepared. Sellers often prefer to sell when the weather is warm, and buyers with families aim to close on their homes before the new school year to allow ample time for settling in.
CONNECTICUT
Combined Home Sales Down 30%
Combined sales are down 30% year over year, with April 2023 at 2,372 compared to 3,389 last April. Sales are down across all categories.
Single families: 2,570 (2022) | 1,809 (2023)
Condominiums: 819 (2022) | 563 (2023)
Combined average prices have increased by 5.7% compared to last year, now at $508,674 from $481,446. Specifically, single-family prices increased by 3.9%, and condo prices increased by 14.9%.
Single families: $548,071 (2022) | $569,645 (2023)
Condominiums: $272,380 (2022) | $312,982 (2023)
Homes Listed For Sale:
The number of homes listed is down by 31.6% when compared to April 2022, as would-be sellers are concerned about jumping into the market.
2023: 3,646
2022: 5,334
2021: 6,342
Pending Home Sales:
The number of homes placed under contract is down by 23.4% when compared to April 2022.
2023: 3,004
2022: 3,923
2021: 4,610
Data provided by SmartMLS then compared to the prior year.
As we navigate the adjusting market and the impact it’s having on buying, selling, renting, and homeownership, being informed is one of the first steps in knowing what to do next. Click on the button to visit the CT Real Estate Updates page and never hesitate to contact us with questions.
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