Second Quarter 2017
Welcome to Berkshire Hathaway HomeServices New England Properties’ Second Quarter 2017 Connecticut Market Report, our examination of the single family and condominium markets throughout the state compared with trends across the Northeast and nationwide.
The Northeast continued its momentum this quarter and according to the National Association of Realtors, outpaced the rest of the country with a 3.1% increase in pending home sales in May – an indicator of increased closings over the next few months. In the second quarter of 2017, Connecticut saw a 5.7% increase in sales volume year over year and 9.1% decrease in days on market, showing strong buyer demand. Compared to the same time last year, average price increased 2.6% to $390,800 for single family homes and 4.7% to $228,700 for condominiums. While most counties saw increases in the number of sales year over year, New London and New Haven Counties saw the largest gains at 13.4% and 9.8% respectively. Sales over $5 million increased from 16 sales in the second quarter of 2016 to 24 sales in the second quarter of 2017. Total luxury home sales – those over $2 million – remained the same year over year.
Although inventory for single family homes is increasing, the type of homes buyers are looking for is lacking. The strongest demand is for upgraded homes close to city centers. The problem is that first time homebuyers, those downsizing and investors alike are all interested in this inventory which is driving average price up and days on market down. Homes that do not have buyer activity are likely overpriced and sellers should consider viewing competitor home finishes, upkeep and location as the true comparison, not just the number of beds and baths.
On the economic front, affordability has been a major industry topic this quarter with median home prices rising faster than wages in most markets across the nation. However, according to ATTOM Data Solutions’ Q2 2017 U.S. Home Affordability Index, Tolland and Hartford Counties countered that trend and topped the list of counties with the highest affordability index (most affordable relative to historic norms for the county). As shown to the right, most of the Northeast is in the upper range of the affordability index, a positive for potential buyers in our market.
Although the economy of Connecticut is in flux, the real estate market has been busy the last few months and it is a positive indicator of other industry growth to come. From our idyllic coastal towns to bustling cities – there is truly something for everyone in this state. 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.