Buying a house last summer felt like part of a game show. From one-upmanship to quick action, it was a struggle for buyers and a great victory for sellers. But now buying a home can get even more difficult, the home inventory in the greater Hartford area is actually down almost 30%.
Dan Corcoran of NBC Connecticut sat down with Alexa Kebalo Hughes, president of the Greater Hartford Association of Realtors, to discuss the trends and what this drop in inventory means.
Dan: “Alexa, thank you very much for being here. First of all, a shortage of homes for sale seems like a bad thing, but doesn’t it? “
Hugues: “So there is a shortage of homes for sale. However, the demand from buyers is also a bit reduced. And you will see that is true because last year at this time there were several offers. and every property, every house for a price above that, but things kind of worked out. And I think that really makes it easier and stabilizes a bit. For the consumer, whether it’s the l buyer or seller, we don’t have as huge a demand as we have had. But we don’t have a huge amount of inventory either. So things balance out and stabilize, offering more. opportunities for buyers to enter, believe it or not. “
Dan: “What does this say about the Connecticut housing market as a whole and where it could be heading in the coming months? “
Hugues: “You know, Dan, we had such a great appreciation towards the start of everything with Covid. Looking month after month and year after year, double digit appreciation in value. Now as you can see this latest study in the past year, this time we only increased 3% over last year for our appreciation and value. Again, no one has a crystal ball. But the pendulum does not seem to be completely reversed. Rather, it is a slowdown. in the rapid growth of the value that we have. “
Dan: “So we talked about the inventory there. But what about the prices themselves? Do buyers still have to think about budgeting a lot more money than they had anticipated at the time. ‘origin in order to land one of these houses? “
Hugues: “Great question Dan. So we don’t see the multiple offers we’ve made before. Okay. So we’ve definitely had a slowdown since the end of summer. And I think that’s very normal for this. time of year, just so everyone is aware. This is totally normal. The market is very cyclical in the sense that things kind of calmed down towards the end of the year we are living in. more that normal cyclical experience than in a normal market. Whereas last year at this time, it was just full steam ahead. “
Dan: “And a lot of people have been sitting on the sidelines just watching the market madness for several months or years now. So what’s your message to those looking to buy a home right now? And what are those saying to you. who are considering selling a house? ”
Hugues: “Yes, so don’t hesitate to anyone looking to buy a home now. If you see a property that meets your needs, the interest rates are so competitive that you can lock it in. And don’t forget the the interest rate is the overall cost. That’s really what matters, guys. Everyone lives in the monthly payment. We don’t live on the purchase price, okay. You have to bring your team together that way when you see the house that suits your needs, you are able to move, make it happen, take action and enter the house before the holidays. “