- The Market Report
Berkshire Hathaway HomeServices New England Properties' Monthly and Quarterly Market Reports are availble for all towns in Connecticut, Rhode Island, Massachusetts and Westchester County, New York. Subscribe to receive an email every month with up-to-the-minute data.
Connecticut 2018 Second Quarter Market Report Summary
Connecticut’s 2018 spring market could be classified as unremarkable. This was due primarily to a supply issue as buyer interest was high and average prices remained steady and in some areas, climbed. The National Association of Realtors® reported that national home price gains were still outpacing income growth and inventory declined on an annual basis for the 36th consecutive month as of May 2018. In Connecticut, single family homes were sold within 89 days at an average price of $394,346.
Prices continued to rise in the luxury market this quarter, confirming there is interest for truly extraordinary properties. Fairfield County’s luxury home prices rose to nearly $3.6 million, a 5% increase year over year. The towns of Greenwich and Fairfield saw an increase in total sales over $2 million while the rest of the state saw a 9% decrease in sales of single family homes in this price range.
The $400,000 and under market accounts for 53% of the inventory of single family homes and 74% of sales in the second quarter. Total sales were understandably down to match the reduced inventory, leaving available inventory levels in this price range at a 3.5 months’ supply. While single family home sales were down nearly 3% year over year across the state, once again the “sweet spot” was in the $300,000 to $600,000 price range, which saw a 6% increase in sales year over year. This price range is where a growing number of young professionals and empty nesters alike are finding a good balance between home sizes and financial costs.
New developments are presenting an opportunity to mitigate the state’s inventory shortage issues. If new building permits are any indication, the increase in new construction permits in Connecticut will offer more options to the buyers in the market. The 1,626 permits issued through May are still heavily weighted for 5+ unit properties and yet, we are seeing an increase in single family and townhome developments throughout the state. The largest gains year over year are in the towns of East Windsor, Greenwich, New Haven, Simsbury and Westport. Berkshire Hathaway HomeServices represents new development properties in most of these markets and is witnessing strong activity from a variety of buyer types who are unable to find what they are looking for in the resale market.
The third quarter will be a true test for 2018’s housing market and any increase in inventory would help keep up with the buyer demand in our competitive market. Price, location and condition continue to be the biggest drivers as buyers are searching online daily and acting quickly as they know to expect competition. Multiple offer activity combined with new development opportunities and job growth are encouraging for our state’s housing market.
If you have any questions regarding this report or real estate questions in general, Berkshire Hathaway HomeServices New England Properties Realtors® are here to help you navigate the current market with expert knowledge and exceptional service.
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