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April 18, 2023
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April Update
What is happening with new home building?
The following numbers show builders hesitating due to the influence of inflation and rising interest rates over the past few months.
Building permits were down 24.8% in March compared to March of 2022 and housing starts were down 17.2% compared to March of 2022 reflecting builder hesitancy as interest rates gyrate.
But you can expect that to change as the National Association of Builders Housing Market Index measuring market conditions for new home sales is on the rise. Moving from a low of 31 in December to 45 in April with the single-family sales component standing presently at 51. (HMI over 50 indicates builders view the market conditions as good vs. poor.)
When can we expect prices to fall?... Not anytime soon.
CT Coastline areas remain a destination for buyers. Migration continues with buyers coming from Fairfield County, Massachusetts, and as far as California…then there are the New Yorkers to throw into the mix.
Adding to that buyer pool, did you know that 40% of young adults 29 and younger still live at home? As a result, this trend has helped support a house hunting generation with significant money to spend once they do move out. These are two significant factors increasing in the average price point of housing in our area.
Measuring housing stock supply versus demand there is just over 2 months of supply (a balanced market has 4-6 months) and the average days on market is hovering around two weeks, so we don't expect prices to fall anytime soon.
Additionally, the new construction the cost for home building is forecasted to be up 5% for 2023 as the industry participants work with labor unions to play inflation catch-up and contractor margins widen to recoup higher input costs absorbed in 2022.
So, the market remains strong and for some residents it may be a good time to plan a move.
Real estate transactions are detailed with a lot to consider and that can be stressful. As your realtor I will help you navigate the process to avoid any pitfalls. If you or anyone you know is looking to make a move in or out of the CT coastline area, please call me. I am happy to be of service.
All the best,
Jane
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86 Halls Road, PO Box 509, Old Lyme, CT 06371
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©2023 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 7/23If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. |
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