Can you believe it is August!? Where does the summer go?
As we transition into Fall, it’s time to take a closer look at the dynamics of our local real estate market. While you might be hearing reports of increased inventory in other parts of the country, it’s crucial to remember that real estate is highly localized. Here in Fairfield County, we’re still navigating a market with low inventory—not as historically low as before, but noticeably lower than this time last year.
This Fall, we’re seeing three key shifts: the reemergence of a seasonal market, opportunities for deals on homes that may not be move-in ready, and the welcome decline in interest rates. Let’s explore these changes in more detail.
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Let’s look at a few main indicators
1. Speed of the market – fast!
Even with this limited inventory, homes are selling fast—still under 37 days on average. Back in 2014 and through many years, it took over 3 months to sell a home until 2021. We are at the lowest in 2024.
2. Sales-to-list price ratios are staying strong, often topping 100%.
We saw a steady 96.5% until 2021, when the low supply and high demand really pushed prices up—and it was a dramatic shift. Now, things are beginning to level off, but we’re still seeing ratios over 100%, currently at 103.2%. Multiple offers are still common, especially for homes in sought-after areas, certain price ranges, and those that are renovated, updated, and move-in ready.
This is the first “something new” about the market. Some homes are lingering on the market a bit longer. Why? It usually comes down to one of three factors: price, condition, or location. For buyers willing to accept a few compromises, these homes might just be where you find a deal.
3. Inventory in Fairfield County remains low.
Fairfield County, CT inventory remains low with -13.5% fewer homes on the market compared to this time last year. While this continues to reflect historically low numbers, it’s important to note that we’ve seen consistency in inventory levels since January of this year. The homes that have come on the market have largely been absorbed quickly, reflecting strong buyer demand. However, we are noticing some properties lingering longer than expected, typically due to factors like pricing, condition, or location. This trend highlights that while the market remains competitive, there are still opportunities for buyers willing to navigate these challenges.
4. Home prices continue to increase.
We can’t leave it there without discussing home prices. With all these factors, they are continuing to rise. Median sale price 10.4% increase from July 2023 and average sale price at an 8.2% increase.
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Another interesting trend? For the first time in four years, we’ve felt a seasonal market. July was quieter—people were on vacation, taking a break from the hustle and bustle, and it showed in the market activity.
We’re already seeing signs of a bounce back in August, and as we move into Fall.
Why do I expect things to pick up again? There will be no downturn of demand and one reason in interest rates.
Interest rates have started to trend downward, with mortgage rates now dipping below 6%. This is encouraging news for buyers, as lower rates can significantly impact affordability. Looking ahead, there’s a prediction that the Federal Reserve may reduce the Fed funds rate this Fall, which could further influence mortgage rates and enhance affordability even more. What someone couldn’t afford just three months ago due to higher interest rates, they may now be able to achieve. This shift could open up new opportunities for buyers and potentially lead to increased activity in the market as we move into the latter part of the year.
As we move forward, here’s what to expect: home prices are likely to rise modestly, interest rates should continue to drop, and inventory will probably stay steady and low. It remains a seller’s market, so it’s important to plan accordingly. For sellers, the keys to success are clear: focus on pricing, presentation, and marketing. For buyers, stay on top of new listings and opportunities, and be ready to move quickly—this market waits for no one. Whether you’re buying or selling, staying informed and prepared will be your best strategy.
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Whether you’re contemplating buying a home now or waiting, preparation is the cornerstone of a successful transaction. Feel free to reach out, and let’s embark on this journey together!
c: (203) 650-6870
e: jennifer.lockwood@cbmoves.com