Checking in on Connecticut’s Housing Market – NBC Connecticut

Beth McCandry

If you’ve paid any attention to the housing market last year, you know it’s scorching hot and Connecticut currently has some of the hottest markets in the country.

New information from the Greater Hartford Association of REALTORS clarifies the problem – prices have increased but inventory levels have decreased. If you compare July 2020 to July 2021, the average price rose 15.8% from $ 285,000 to now $ 330,000, and over the same period, inventory decreased more than 30%.

In fact, a new report from REMAX shows that the Hartford area, along with Indianapolis and Albuquerque, is in the top 3 nationwide for the greatest decline in stocks. REMAX says there is now less than a month of inventory in the Hartford market.

NBC Connecticut’s Dan Corcoran sat down with Alexa Kebalo Hughes, President of the Greater Hartford Association of REALTORS to discuss the numbers.

And: So Alexa, it seems like a great market when you’re selling, not great when you’re buying.

Kebalo Hughes: So Dan, thank you very much for that. So overall, we’re still seeing a huge drop in our inventory. Fortunately, we used to only have 50% of our inventory. Now we’re actually only about 30% lower than last year at this point. Our inventory is still tight, but there are still opportunities out there. But I have to be honest with you Dan, you are absolutely right. It’s phenomenal to be a seller in this market. In fact, they finally have the equity in their homes that I know many people have lacked for many years since the real estate market crashed. But all in all, if you’re a buyer, it’s still not a bad time to consider moving because there are still plenty of great options out there. Mainly because the inventory is not that short. And interest rates are still historically low.

And: Yes, let’s talk a little more about this for those who want to buy now, should they get in? Or should you wait a bit?

Kebalo Hughes: To be honest, nobody has a crystal ball, nobody knows what the future will bring. But what I can tell you is that with interest rates this low, it will really lower the cost of the purchase price, or the cost of purchasing it overall, in the long run. Although our purchase price and sales prices are still higher than traditional, I really believe that this is more of a correction in the market. Because remember, Dan, Connecticut was actually one of the last days to get away from the whole nation. While we are still getting good value added month after month and year after year with our prices despite the low interest rates, I think it’s not a bad time when you are a buyer who is able to buy the home, me think it’s still a good time to try and take a step.

And: And like you just said, none of us have a crystal ball. But is there any indication of when inventory levels might rise again and prices might drop a little?

Kebalo Hughes: You know Dan, at the end of the day, I really believe that we need something that moves and moves us, especially the people on the fence, right? There are so many sellers holding onto their inventory. And maybe the house is too big or too small. And there is a lot of catching up to do from salespeople wanting to move, but they really aren’t going to move until something pushes them off the fence. Right. So I want to say what could possibly move them to step, and I hate to say it, but if interest rates keep going up it might make some sellers say you know what, let me try secure the next home while interest rates are still at all-time lows. So I think that will help, right? Because when we have salespeople who want to make a difference, they keep the inventory. If there is something like a rate hike, none of us want it that badly. I think factors like these will help people on the fence actually list their homes and move to the next one.