Spring has sprung, and with it comes your Spring housing market update!
There’s has been a hope for the old days, where buying and selling real estate followed a more predictable and seasonal pattern. Despite my hope for a return to “normal”, the current market remains tight, a reality I see every day. I continue to witness firsthand the squeeze that continues to define our local market. Let’s look into the trends from the first quarter of 2024 to understand what this means for those eager to make a move.
The Economy: All Eyes on The Fed
The economy continues to affect the housing market and all eyes are on The Fed and waiting for their actions regarding rate cuts. Despite early predictions by economists for multiple rate cuts hinging on positive inflation data, the actual figures have not prompted that action. Now, expectations have been adjusted to just two rate cuts, possibly not before September, and this effect is felt with tight inventory levels and a continued challenge for home affordability.
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The Squeeze in our Local Market
I’m witnessing the squeeze that continues to define our local market. My buying clients feel the pressure, with new listings being snapped up almost as quickly as they appear. The tug-of-war between demand and supply is real, and one of the most telling signs is the month supply of inventory.
In a market balanced between buyers and sellers, you’d expect to see a 5-6 month supply. However, pre-January 2020, it’s clear that the market has shifted. Back then, month supply was consistently over 6 months. And today, and for the past four years, we’ve been below a 3 month supply, indicating a persistent seller’s market.
Seller Strategies: The Key to Top Dollar
Yet, sellers, a word of caution: the homes hitting top dollar are those that are primed and polished for the market. We’re talking decluttered spaces, a fresh coat of paint, and staging that makes a lasting impression. Do not overlook pricing—Homes that linger on the market are often those that missed the mark on their price tag. Staying grounded in the reality of the market is crucial when setting your expectations.
Buyer’s Corner: Navigating
For buyers, the current market is like navigating a maze. Crafting an offer that stands out is imperative to gain a winning offer. Understanding how to structure your bid, adjusting terms to match the seller’s needs, agent relationships and communication are the upmost importance to succeed.
A few key trends for single family homes that have developed through the first quarter in Fairfield County:
• Properties are selling quickly: Homes are spending less time on the market, leading to faster transactions. The average days on market through 1Q 2024 is 42 days.
• Homes selling over asking: An indicator of a strong market are when properties selling above asking price and the sell/list price ratio at the end of 1Q was 103.3%.
• Appreciation: Home prices continue to rise with a 8.9% increase in average sales prices year-over-year. Tightened inventory levels are pushing property prices higher.
Seller Challenge:
Many homeowners are sitting in homes with low mortgage rates and with that, it’s understandable that many might put a pause on selling. By selling now, you could cash in on your home’s current value, which, due to the equity you’ve accumulated over the last few years, could balance out the costs of a new mortgage, even at a higher rate. With the Fed’s plan toward lowering rates in the Fall, you would refinance when rates drop. I have strategic plans to help guide you through the process to attain the lifestyle that works for you and your family.
Buyer Challenge:
Despite the words of a “seller’s market”, there are still opportunities for buyers. If you are ready to buy, then buy. Don’t wait for interest rates to drop as that will bring a new set of challenges. When interest rates do drop, and they will, you could be faced with more competition and possibly higher prices. Refinance will be in the future for many purchasing homes now, as they capitalize on building their equity sooner.
Ready to make your next move in the real estate market? Whether you’re curious about the current value of your home or need a solid strategy to secure your dream property, I’m here to help. Reach out for a comprehensive price opinion on your home, or let’s discuss how to navigate the home buying process effectively.
Regional Insights end of March 2024:
Fairfield: Ave. Home Prices $1,148.5K (+9.3%), Inventory 116 (-23.2%), Days on Market 47 days(+6.8%), Month Supply of Inv. 2.3 months (-4.2%)
Westport: Ave. Home Prices $2,428.3K (+2.9%), Inventory 87 (-12.1%), Days on Market 55 days(+1.9%), Month Supply of Inv. 3.2 months(+23.1%)
Easton: Ave. Home Prices $987.8K (13.6%), Inventory 22 (-33.3%), Days on Market 52 (+10.6%), Month Supply of Inv 2.7 months (-20.6%)
Weston: Ave. Home Prices $1,260.0K (+7.7%), Inventory 37 (-2.6%), Days on Market 44 days(-20.0%), Months Supply of Inv 2.9 months (+31.6%)
Wilton: Ave. Home Prices $1,197.9K (+3.8%), Inventory 32(-30.4%), Days on Market 40 days(-7.0%), Month Supply of Inv 1.8 months (-10.0%)
Trumbull: Ave. Home Prices $622.0K (+5.8%), Inventory 53(-25.4%), Days on Market 36 days(-5.3%), Month Supply of Inv 1.9 months(0.0%)
Norwalk: Ave. Home Prices $857.3K (-0.6%), Inventory 85(-28.6%), Days on Market 36 days(-14.3%), Month Supply of Inv 1.8 months(-5.3%)
Notables: Inventory is down by over 23.6% across all towns, home prices continue to rise in single digit range, average days on market are just over one month, and month supply of inventory is under 3 months and less.