Realtors: Housing market isn't waning despite rising rates and low … – Meriden Record-Journal

MERIDEN — The local housing market remains strong, despite some headwinds caused by higher interest rates and low housing inventory.

According to a December 2022 housing report by Berkshire Hathaway Home Services New England Properties, median sales prices in Meriden increased 1.11 percent over December 2021. List prices increased and days on the market decreased.

“Housing markets across the country may be slumping, but across Connecticut, indicators suggest demand is still stronger than the pre-pandemic baseline, even if it is waning,” according to the Commercial Record. 

Nationwide, 60.8 percent of the home offers written by Redfin agents faced competition in May, the combination brokerage and listing portal reported in June.

“That figure is down from 67.8 percent in April of this year and 71.8 percent in May 2021. The shift came as mortgage rates jumped to levels not seen in over a decade, trimming buyers’ budgets dramatically and knocking some out of the market altogether,” the Commercial Record reported. 

December average home listings in Meriden were $225,000, a 2.3 percent increase over 2021. Average sales prices were $235,000, a 1.1 percent increase. Days on the market dropped from 36 to 25 days, reflecting the market’s tight inventory, according to BHHS.

“It’s funny, the picture the media is painting is not what I’m seeing,” said Kevin Green, of BHHS. “I don’t agree with that (cooling market). I’m still getting multiple offers. People are still offering over listing price. There’s really been no change from last year except rising interest rates.”

Low inventory continues to drive higher prices in both Meriden and nearby Wallingford, Green said. But interest rates have more than doubled from their historic lows creating some downward pricing. Green said a closing just before Christmas had a 6% interest rate. 

Realtors are finding some homes priced too high for the current market. A newly constructed 1,800 square foot home on Loyola Road failed to sell for $400,000 this spring and is now off market.

“We couldn’t make it work,” Green said. ”The owner is going to live in it until we see what the market does this year. If it sits too long, people start to wonder.” 

Price drops are typically a sign that a seller has overpriced their home relative to buyer demand, and before the pandemic would usually rise throughout the year as homes unsold during the spring market sought to attract new buyers during the less-intense fall market. Generally, the higher the share of homes with price drops, the lower the buyer demand in a market, according to the Commercial Record.

In the greater New Haven area, only 3.2 percent of listings had a price drop for the four weeks ending June 12, Redfin said, compared to 1.5 percent for the month of March and 4.2 percent for the four weeks ending June 16, 2019.

“All counties in Connecticut saw the median sale price increase at least 7% compared to the same quarter last year; with Hartford, New Haven, Windham and Litchfield Counties seeing the largest increases,” according to BHHS. 

“We are still seeing listings selling over asking price in many areas, the report stated. “This is all very positive news if you are a seller and is in notable contrast to national reports that real estate prices are plummeting across the country,” according to BHHS. “More good news for sellers is the sharp decrease in market time, down 20% overall to just 36 days across the state.’   

mgodin@record-journal.com203-317-2255Twitter: @Cconnbiz

MERIDEN — The local housing market remains strong, despite some headwinds caused by higher interest rates and low housing inventory.
According to a December 2022 housing report by Berkshire Hathaway Home Services New England Properties, median sales prices in Meriden increased 1.11 percent over December 2021. List prices increased and days on the market decreased.
“Housing markets across the country may be slumping, but across Connecticut, indicators suggest demand is still stronger than the pre-pandemic baseline, even if it is waning,” according to the Commercial Record. 
Nationwide, 60.8 percent of the home offers written by Redfin agents faced competition in May, the combination brokerage and listing portal reported in June.
“That figure is down from 67.8 percent in April of this year and 71.8 percent in May 2021. The shift came as mortgage rates jumped to levels not seen in over a decade, trimming buyers’ budgets dramatically and knocking some out of the market altogether,” the Commercial Record reported. 
December average home listings in Meriden were $225,000, a 2.3 percent increase over 2021. Average sales prices were $235,000, a 1.1 percent increase. Days on the market dropped from 36 to 25 days, reflecting the market’s tight inventory, according to BHHS.
“It’s funny, the picture the media is painting is not what I’m seeing,” said Kevin Green, of BHHS. “I don’t agree with that (cooling market). I’m still getting multiple offers. People are still offering over listing price. There’s really been no change from last year except rising interest rates.”
Low inventory continues to drive higher prices in both Meriden and nearby Wallingford, Green said. But interest rates have more than doubled from their historic lows creating some downward pricing. Green said a closing just before Christmas had a 6% interest rate. 
Realtors are finding some homes priced too high for the current market. A newly constructed 1,800 square foot home on Loyola Road failed to sell for $400,000 this spring and is now off market.
“We couldn’t make it work,” Green said. ”The owner is going to live in it until we see what the market does this year. If it sits too long, people start to wonder.” 
Price drops are typically a sign that a seller has overpriced their home relative to buyer demand, and before the pandemic would usually rise throughout the year as homes unsold during the spring market sought to attract new buyers during the less-intense fall market. Generally, the higher the share of homes with price drops, the lower the buyer demand in a market, according to the Commercial Record.
In the greater New Haven area, only 3.2 percent of listings had a price drop for the four weeks ending June 12, Redfin said, compared to 1.5 percent for the month of March and 4.2 percent for the four weeks ending June 16, 2019.
“All counties in Connecticut saw the median sale price increase at least 7% compared to the same quarter last year; with Hartford, New Haven, Windham and Litchfield Counties seeing the largest increases,” according to BHHS. 
“We are still seeing listings selling over asking price in many areas, the report stated. “This is all very positive news if you are a seller and is in notable contrast to national reports that real estate prices are plummeting across the country,” according to BHHS. “More good news for sellers is the sharp decrease in market time, down 20% overall to just 36 days across the state.’   
mgodin@record-journal.com203-317-2255Twitter: @Cconnbiz

Home Sports Obituaries Contact Us
Sign Up for our Newsletters
Work With Us
Copyright 2023
500 South Broad St, 2nd Floor, Meriden, CT 06450
+1-203-235-1661
circulation@record-journal.com
advertising@record-journal.com
newsroom@record-journal.com
The RJ Media Group
Our mission: To be the primary catalyst that motivates people to contribute to the intellectual, civic and economic vitality of our communities.

Advertise with us
Copyright 2023

source

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *