Welcome to the October 2021 Market Report.
I am so happy to keep you posted on the latest happenings in the real estate market and how I can be that trusted advisor, that knowledgeable broker, that true expert in your market area to better serve you.
Our current market has returned to “seasonality” … meaning in September and October there has been a slowdown at certain price points. One of the obstacles for the momentum of the fall market is that it is of short duration. If sellers don’t sell within the next few weeks, before the holidays, they could be stuck with their properties well into the New Year. With that said, the market is still running at a higher pace than in years past, although nothing is usual in today’s pandemic-driven housing market. Up to the start of the fourth quarter, the number of closings has hit an all-time high. These results were purely driven by the supply and demand principle.
YTD sales (SF) through September 2021 vs. 2020 were down in Westport (-2.1%) and Weston (-7.9%), up in Wilton (+18.4%), down in Fairfield (-6.8%), up in Norwalk (+14.8), Darien (+5%), New Canaan (+30%), Rowayton (+15%) and Redding (+15%). YTD average sales price was up in Westport (+18%), Weston (+37%), Wilton (+24%), Fairfield (+15%), Norwalk (+19%), Darien (+15%), New Canaan (+18%), Rowayton (+28%) and Redding (+25%).
While it is an excellent time to list one’s home, pricing is critical, as buyers have become more discerning as the pandemic driven urgency has waned. Sellers need to be careful. If they are too aggressive seeking top dollar, they lose their “sellers market” advantage. Properly priced properties are flying off the market with multiple offers. The worst thing a seller can do is overprice. Overpricing only serves to sell your competitors properties.
The single biggest risk to the housing market is rising mortgage rates. It’s a real possibility that next year we will see a rise in interest rates. It’s going to be more expensive for people to borrow. Right now, the 30-year fixed just jumped to 3 percent – it’s sort of crazy that we are talking about 3 percent…borrowing money is still cheap.
I have had many buyers saying …. “You know what, I don’t want to buy right now because I don’t want to buy at the top of the market.” Well, I have this to say – I think there may be some deceleration of price, meaning we’re not going to stay at price point, we’re going to see less appreciation, but not depreciation. Buyers will never be able to wait out the market perfectly. “If you’re trying to wait for the perfect time, I feel like you will be waiting forever”.
While demand remains strong for the lifestyle here in Fairfield County, many of those that want to live here are finding it extremely difficult to realize this as a reality…buyers need to set realistic expectations. As a buyer, you need to know how to identify the right opportunity for you and when it makes sense to purchase ASAP.
While Connecticut and our local market area has a lot to offer, it is yet to be determined what percentage of the workforce will continue to work from home, be it full-time or part-time, but the ability to do so comfortably remains top of mind for today’s buyers.
Please don’t hesitate to reach out to me if you would like to strategize how best to proceed with a sale or purchase in his market. I have the resources, the experience and can successfully maneuver the nuances that exist in this unique marketplace. Let me know how I can help you.
Best,
Barbara
