Connecticut Spring Market 2023

Connecticut Spring Market 2023

  • Laurie Kane
  • 03/27/23

Connecticut Real Estate 2023 

8 Things you need to Know About the Spring Market 

The Connecticut housing market has been red hot since the Covid pandemic. Is it starting to cool? Is there a shift in the air? What’s up with mortgage rates?

Good questions. Let’s dive in and find some good answers!

#1 Connecticut Home Values

Connecticut has seen a significant increase in home values over the past year. The average home value has increased by 8.5%. For sellers, this is excellent news.

For buyers, this is a tough pill to swallow. As home values continue to rise, buyers and their agents need to be strategic in their search and their offers.

#2 How to Find a House in this Competitive Market

With continued record-low inventory, this year’s Spring Market is going to be more competitive than ever. During these challenging times it is critical to partner with a knowledgeable, experienced local agent who will advocate for you. Your agent needs to be your champion during both the search and negotiation process. It is imperative to choose a seasoned local agent that is well-informed with market trends. They should know what’s coming on the market, what’s being sold off-market, and have strong networking relationships with other agents. Staying informed is how your agent is going to find you real estate opportunities that are best suited to your needs and price point.

#3 Are We in a Balanced Housing Market 

Many experts have touted that the Connecticut Spring Market is starting to show signs of stability and balance. While this news sounds promising, I have yet to see a substantial increase in inventory in The Farmington Valley. Therefore, the seller’s market continues to hold strong, leaving buyers in a predicament whether to continue paying the landlord’s mortgage or attempt to win in a bidding war to secure a home.

Moving towards a more balanced market whereby neither party has a significant advantage in property negotiations would be ideal. Are we there yet? Unfortunately, what I have witnessed in this seller’s market is tremendous greed. Based on personal experience and knowledge, the demand for housing is so strong that buyers are paying hundreds of thousands over asking price and sellers are refusing to consider anything until all offers have been presented, giving them a strong upper hand.

 With the real estate market cooling in late 2022, amid rising mortgage rates and expected inflation, the 2023 Spring Market may start to show signs of balancing, but we are not there yet. Sellers are still sitting in the cat bird seat.

#4 Could the Average Price Point Change

Buyers should expect continued competition as we move into the Spring Market, but most likely at a lower price point. Showing demand is still strong, but sellers are noticing that a sensibly priced and well-marketed house will receive more offers than those that have been listed way over appraised value and have had to undergo price reductions. 

“2023 might become a year of long-lost normalcy returning to the market”, economists predicted during a recent National Association of Realtors annual Real Estate Forecast Summit. As the spring market unfolds and more inventory becomes available houses at lower price points will have the greatest appeal to the average buyer and with that comes steep competition.

#5 How are Mortgage Rates Affecting the Spring Market 

Last Year mortgage rates reached a record high in 20 years leaving many experts predicting that due to continued inflation, potential recession, and geopolitical tensions, they could continue to climb. With this observed trend, higher interest rates could cause a significant drop in home sales. 

Furthermore, recent turmoil with banks and the financial crisis looming over the banking industry has caused heightened investor concerns. Many homebuyers are putting their home search on hold and keeping a watchful eye on how these changes may affect mortgage rates and ultimately their buying power. 

#6 Where in The Farmington Valley Should Buyers be Looking

According to Connecticut Magazine Farmington led the Hartford area for highest gains in home sales in 2021. However, the focus now is on West Hartford to generate a far higher number of listings and potentially much larger number of home sales. With its hot, trendy downtown and easy access to Hartford and highways, this vibrant town is soon becoming the “it” place for Millennials, Gen Z’s, as well as Boomers. 

 Niche’s 2023 Top Best places to buy a House include:
•    #2 Weatogue, a village within Simsbury
•    #4 East Granby
•    #11 Avon
•    #13 Simsbury
•    #14 Farmington
•    #18 West Simsbury

#7 How Does Connecticut Compare to the Rest of the United States

The median US home-sale prices are expected to drop by roughly 4%, the first annual drop since 2012, due to elevated final sales prices from sales that went under contract in late 2022 and the current lack of homes for sale. Connecticut seems to be following the same trend as homes become less affordable making it more difficult for first-time buyers to enter the market.

#8 What should you do if you are looking to buy or sell this year  

Whether you are selling your home or looking for a new one, I can help. You need a seasoned, professional realtor who is a local expert that can help you navigate the nuances of 2023’s housing market to help you achieve your real estate goals.

Let’s talk. 
Laurie Kane
[email protected]

Work With Laurie

Laurie's dedication to helping you achieve your real estate goals is truly commendable. By offering her expertise in choosing the perfect color palette and staging your home to enhance its marketability, she ensures that every aspect of the selling process is optimized for success. With her keen eye for design and a deep understanding of what buyers are looking for, Laurie can transform your home into a show-stopping masterpiece that captures the attention of potential buyers and helps you achieve top dollar for your property.

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