CT Homes Sell Even Faster Amid Dwindling Supply and Rising Mortgage Rates

While Connecticut real estate listings remain down, homes on the market are snapped up 50% faster than last year as buyers also grapple with rising mortgage rates.

Last week, a Federal Reserve committee raised interest rates that affect what homeowners pay over time for their mortgages and other loans. It was the first hike in three years and the first of several hikes the Fed is expected to make this year, despite rising fuel prices and other inflationary pressures that experts say will eventually dampen the economy. economy.

The increased rate coincides with some families starting to look for new homes to move to at the end of the school year. In Connecticut, new listings continue to delay buyer enquiries, preventing some from hoping for a bargain in the suburbs or the countryside.

In the first two months of this year, about 5,800 homes were sold in Connecticut, according to Berkshire Hathaway HomeServices New England/New York/Hudson Valley Properties, down 15% from the start of 2021.

There were also about 15% fewer enrollments in January and February. Properties are also selling in around 30 days on average – 50% faster than last year – and many are being selected on the weekend when their owners put them on the open market.

“The demand is still there,” said Paul Breunich, CEO of Stamford-based William Pitt Sotheby’s International Realty. “Inventory is tight, obviously – and it’s getting tight historically – but properties are selling.”

Breunich said New York buyers continue to scour Connecticut’s Fairfield and Litchfield counties and New York’s lower Hudson Valley communities, whether for weekend homes or moves. permanent. In most markets, buyers continue to offer up to 3% more than the amounts sought by sellers, a sign of continued interest in competitively priced properties.

But with fewer properties to browse, only Stratford and Sherman saw an increase in transactions in the first two months of 2022. Statewide, Zillow listed about 400 open houses for the third weekend in March, many of these sellers can count on multiple offers per Monday, according to Candace Adams, CEO of regional brokerage Berkshire Hathaway.

“You have five cash offers and zero home inspection contingencies,” Adams said. “Buyers do all sorts of things to get to the sale.”

Greenwich has recorded the seven most expensive sales so far in 2022, led by a Windrose Way mansion which sold for $13.3 million. Westport recorded the biggest deal outside of Greenwich with the sale of a $7.5 million home second only to Compo Beach this month.

The biggest sale so far this year outside of Fairfield County was Killingworth’s Pattaconk Farm estate, which sold in February for $6.8 million, down from its original listing price. $8 million last year.

The owner of the 60-acre Great Island equestrian estate in Darien is targeting $100 million, down $75 million from the 2016 price when it first went on the market. The property is owned by descendants of William Ziegler, who ran Royal Baking Powder before a merger with Standard Brands to form the second-largest packaged food company in the United States before World War II.

[email protected]; 203-842-2545; @casoulman

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