Market Update through 1Q 2023
I would like to share my take on the current market, which is based on the insights gained from working with my clients. Currently, the real estate market is experiencing a surge in activity, commonly referred to as the “Spring market.” Despite the interest rate hovering around 6% and above, potential home buyers remain undeterred. This is mainly due to the high demand for properties, as the inventory levels remain low. As a result, there is stiff competition among buyers for available homes, with multiple offers becoming a common occurrence. In particular, properties that are well-maintained and appropriately priced are attracting interest within a few days of being listed, and often prompt highest and best offers in a short timeframe. Until there is a significant increase in inventory levels, the market is not expected to balance out.
Here are the number of homes on the market in the following towns which is historically low:
We are experiencing a decrease in the average number of days that homes remain on the market. In fact, properties in Fairfield County are now selling within 30 days, which is 21.2% lower than the average from the previous year. In addition, the months supply of inventory across all towns is less than 3 months. This indicates that at the current sales rate, it would take just three months to sell all the available inventory.
According to Lawrence Yun, the chief economist of the National Association of Realtors, interest rates are expected to reach approximately 5% by the close of the year. This forecasted decrease is anticipated to bolster buyer demand and potentially incentivize homeowners who desire to upgrade to list their properties for sale. This, in turn, would help to alleviate the current shortage of inventory in the market. This is more of a hope than a prediction.
If you’re a seller, now’s the perfect time to sell at a great price. But if you’re a buyer, it’s important to be patient and strategically plan your offer.
As always, feel free to contact me anytime with your real estate needs.