CONNECTICUT - While Connecticut real estate sales continue to increase, the state's economy isn't booming as quickly as it used to. This has led to a slowdown in the price of homes. However, agents predict home prices will level off or increase this year. Rising interest rates are also a contributing factor. If you want to buy a home in Connecticut, now is a great time to do so.
High-end Residential Real Estate
Connecticut has a healthy housing market, but the state's home prices will likely cool off a bit in the coming years. The state's geographic diversity and close proximity to New York City make it one of the top destinations for buyers from many walks of life. It has a lot to offer, from the rolling Appalachian mountains in the west to the rocky shoreline of Long Island Sound. The state boasts an appealing New England charm, colorful foliage in the fall, and rich local lore dating back to the Revolutionary War. In addition, Connecticut has excellent public schools and a walkable community, which is a good combination for buyers.
The state's housing market has seen tremendous activity in the last two years. The demand for housing has outpaced supply. Prices are expected to rise slightly or even lower in Connecticut this year. Rising interest rates are likely to be a contributing factor, as well as lower inventory levels.
Lack Of Inventory
With the demand for real estate in Connecticut continuing to rise, the lack of inventory in the state is a huge concern. There aren't enough houses to go around, and many buyers are paying more than the asking price for a home. Although inventory levels are still low, they are slowly rising. Currently, there are about four months of inventory in Connecticut. However, that number is expected to increase over the next two years.
In 2023, there will be an increase in new home construction, which will make inventory levels even more plentiful. While the housing market will still be impacted by low inventory, it will likely be improving. However, it is still important to plan ahead. Planning, budgeting, and financial improvement can go a long way in speeding up the home buying process.
Rising Interest Rates
If you're planning to buy a home in Connecticut in the near future, you might want to consider the risks associated with rising interest rates. The state's housing market is forecast to experience a modest slowdown by 2023. While the rate of home appreciation has remained moderate, the housing supply is currently short of what is needed to maintain a balanced real estate market.
The housing market in Connecticut is currently tilted towards sellers. The market is expected to remain that way for the foreseeable future until inventory increases faster than demand. Rising interest rates may be the culprit in causing the slowdown. However, there's no need to panic. The trend is still positive, and the slowdown could be the perfect time to buy a home.
According to the latest Zillow Connecticut Real Estate Stats and Forecasts, the average home price in the state will rise by 3.73% by 2023. However, the state's northeast corner is predicted to decrease in home value in the fourth quarter of 2023. This region of Connecticut is also known for its high housing costs, with the Bridgeport-Stamford-Norwalk corridor accounting for the third highest median monthly rent. As a result, state lawmakers are considering passing legislation limiting rental price increases.
Although the Zillow Connecticut Real Estate Stats and Forecasts for 2023 may seem optimistic, there are several concerns to consider. For one, the state has low home inventory levels. This means that fewer buyers will be looking to purchase a home. At the same time, rising mortgage rates are a potential downside for the state's housing market.