- The Market Report
Berkshire Hathaway HomeServices New England Properties' Monthly and Quarterly Market Reports are availble for all towns in Connecticut, Rhode Island, Massachusetts and Westchester County, New York. Subscribe to receive an email every month with up-to-the-minute data.
Connecticut 2018 First Quarter Market Report Summary
Low inventory and multiple nor’easters affected the number of first quarter sales in Connecticut, however home prices were 2.5% higher when compared to the first quarter of 2017. Days on market for both single family homes and condominiums are still low at 104 and 105 respectively, showing a strong demand for inventory. Luxury home sales – those sold for over $2 million – saw a slight decrease of 11.1% (112 vs. 126 sales) in the first quarter of the year when compared to 2017; however, 18 of the 112 sales were over $5 million, compared to 14 sales in the first quarter of 2017. The average price for luxury properties rose 6.0% this quarter to over $3.5 million. Fairfield County accounted for 92% of home sales over $2 million with the majority of the sales in Greenwich and Westport.
Sales professionals are reporting many active entry-level buyers in the market looking for similar-style homes. Results from a recent survey by Realtor.com® stated that the ‘typical spring home buyer’ is on the hunt for a three-bedroom, two-bathroom house with a garage and updated kitchen. This correlates with sales data in that there was an increased demand for homes priced within the $300,000 and $600,000 range in the first three months of the year. While total single family home sales were down 8% year over year across the state, there were 10% more homes sold in this price range when compared to 2017.
The number of new building permits increased 67.6% when compared to January and February of 2017. With 749 total permits issued, the Department of Economic and Community Development reported that the last time numbers were this high was 2007! 66.0% of the permits issued so far this year have been for properties with five or more units - likely attributed to large developments in East Windsor and New Haven. Fairfield, Greenwich, Norwalk and Milford also had double digit new building permits in the first two months of the year. Across the state, Berkshire Hathaway HomeServices sales executives saw an increase in activity in requests to pre-market and actively sell once-stalled developments.
Other good news for the state of Connecticut in regards to the housing market is that the number of foreclosures is decreasing. According to RealtyTrac data from February 2018, pre-foreclosures and bank owned properties are down in Connecticut year over year by 20.2% and 32.3% respectively. Due to the lengthy foreclosure process, Connecticut was one of the last states to suffer the consequences from the downturn and the end finally appears to be in sight.
If you have any questions regarding this report or real estate questions in general, Berkshire Hathaway HomeServices New England Properties Realtors® are here to help you navigate the current market with expert knowledge and exceptional service.
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