Connecticut real estate agents forecast continued growth in 2022, but normalize
He said values ââwill remain strong âfor the next few months and for the foreseeable future,â however, as homes are still selling quickly and there are fewer available.
âEven with the slowdown from what we saw a few months ago, I still find the market to be a lot stronger than it has been in the past,â Cholewa said.
While it’s still unclear what the housing market will do for sure, at least some local real estate agents expect the market to perform well through 2022, especially in terms of single-family homes.
Who buys single family homes?
Based in Norwich Navick Real Estate Agent Jackie Kapusta said people looking for single-family homes have been cash buyers. Kapusta also said that many people are ready to buy homes as is, even with the possibility of damage or infestations.
âPeople just get this home inspection for the buyer’s knowledge, and they don’t necessarily require the seller to fix any of these issues, and that saves the seller later,â Kapusta said.
Andrea Kazantzis, owner of Kazantzis Real Estate in Brooklyn, said there were still plenty of out-of-state buyers coming from New York, Massachusetts and elsewhere to buy homes for themselves or as investments, drawn by the rural character and affordability.
âIt’s even cheaper on this side of the state,â Kazantzis said.
Cholewa said part of the interest in single-family homes was due to the fact that prices for new construction, from sales of land and materials, had been high, although sales of land had picked up.
A flood of foreclosures?
Kazantzis said part of that demand will also be boosted by foreclosures, as pandemic-related protections had prevented them in the past.
âI think there’s going to be a flood of them on the market,â Kazantzis said.
Data from Eastern Connecticut Real Estate Association shows that the price of single-family homes is steadily increasing. For the first quarter of 2020, the median price of a home in Windham and New London counties was $ 225,000. The median for the first quarter of this year was $ 266,000, and the median for the third quarter of this year, the most recent data, is $ 300,000. For each county, the availability of housing was slightly lower than it was, and there was a decrease of more than 50% in the length of stay of housing in the market compared to 2020.
House prices determine rental prices
Kapusta said that with the increase in house prices, rental prices also increased and people who were renters were pressured into buying houses.
âTheir rent is what they would spend on a mortgage, and they would rather own something than have to pay the rental fees,â Kapusta said.
Kapusta said she recommends buyers prepare for a multi-buyer situation.
âEven though this is a lower offer, cash generally prevails and there are usually fewer stipulations,â Kapusta said.
Cholewa also believes home sales will remain competitive.
âIf you feel like (a house) is right, move on, because if you wait, you’re probably going to lose it,â Cholewa said.
Interest rates rise
As for what’s soft, Kazantzis said interest rates will start to rise again, even if they’re low in the grand scheme of things. Rates have already fallen from less than 3% in recent months to around 3.5% today.
“Someone who approved a $ 300,000 house now with lower interest rates, when interest rates go up they might not qualify, just because of where the payments would be. ‘interests,’ Kazantzis said.
Cholewa said rising interest rates could also cool down the bidding wars that have become emblematic of the current real estate market. However, the pandemic remains an unpredictable element that has an immediate impact on real estate.
“People can be worried about listing their homes, having people in and outside of them and what will happen with their jobs if the country has to shut down again. its doors, âCholewa said. “As long as we continue to overcome this and stay clear of the weeds, this should allow the real estate market to continue to thrive and have a strong 2022.”