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March 11, 2024
Waiting for Spring
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Hello Friends,
As we enter the month of March, it is the beginning of a new real estate season. The market housing supply shortage remains the Achilles heel with the average price of a home in Connecticut reportedly up 10.3% in the past year. But when looking closely at that number it should be noted that home prices did slow down last year as surging interest rates slowed buying activity. So that number may be a reflection point in time of the market choppiness.
On the coastline in Connecticut the buyers have been resilient and represent a combination of those geographically relocating from other areas and buyers who are dual wage earners with no kids. Adding to that mix is the normal flow of local residents whose children are now looking to move back to the area or locals who are looking to downsize within the area.
Sales have slowed due to the lack of inventory not a lack of interest. Overall, the buyers continue the hunt and quality homes priced accurately sell quickly.
Looking to the future market scenario, there is a bright spot and that is the current building industry market sentiment as reflected in the monthly NAHB/Wells Fargo Housing Market Index (HMI) a survey of NAHB members designed to take the pulse of the single-family housing market. As of February, the national builder sentiment was recorded at a level of 48. However, when looking at the index results regionally the Northeast portion of the index has moved from 46 up to 62 in the past 12 months. (Above 50 is considered an optimistic outlook.) This is good news as the logjam of new supply can be expected to move forward. Locally there are several new planned developments in the works and builder optimism means they will be breaking ground sooner rather than later.
As always If you or anyone you may know is looking to make a move, I am happy to be of service and would look forward to helping you or any of your friends or relatives with any real estate needs and, as always, I am grateful for any potential client referrals.
Happy Spring,
Jane
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86 Halls Road, PO Box 509, Old Lyme, CT 06371
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©2024 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Anywhere Advisors LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Pub 3/24 |
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