Home prices around the country have risen at a record pace throughout much of 2021 and Connecticut is no exception. Reduced house inventory coupled with near record low interest rates have created a dream market for sellers. And to make the situation even tougher for would-be buyers, investors have been scooping up many single-family homes, looking to turn them into rental properties or to flip them for profit. These factors and others led Connecticut homes to sell for an average price of $513,113 in Q2 2021, an increase of 30 percent over the second quarter of 2020.
The average home price is unnervingly high for many buyers. However, that average was pulled up by a dramatic increase in sales of luxury homes worth more than $2 million. There were 499 such homes sold in the second quarter alone, 160 percent more than a year ago.
Many real estate professionals say the better way to view the market is to look at median home prices. In June, the median Connecticut home price reached $335,000. This gives a truer picture, because the median is not as skewed by multi-million-dollar luxury sales. It illustrates there are still relatively affordable homes to be had.
Moving into the third quarter, there are signs that the housing market is self-correcting after a lengthy period of record price gains. More buyers moved to the sidelines in July and early August instead of paying what they viewed as unreasonable prices. This could lead to a much-needed increase in homes on the market and possibly allow prices to stabilize as inventories rise.
If you are thinking of buying a home before the end of the year, here are a few things you should consider:
Be sure you have a responsive, aggressive real estate agent who understands your buying goals, communicates well and can act quickly on your behalf.
Think about ways to make your offer competitive. If you can afford an all-cash deal or a larger deposit, that will help your offer stand out.
Talk to an attorney in advance about negotiating your contract for you and determining what other professional assistance you might need.
In this year’s frenzied real estate market, it helps to have an experienced attorney in your corner. The lawyers of Gesmonde, Pietrosimone & Sgrignari, L.L.C. can help you by negotiating contracts, handling title searches and resolving title issues, conducting your closing and more. Call 203-745-0942 or contact us online to speak with an attorney at our Hamden or East Haven office before committing to a home purchase.
Gesmonde, Pietrosimone & Sgrignari, L.L.C. is located in Hamden, CT and serves clients in and around North Haven, Hamden, Waterbury, Bethany, Milford, Wallingford, Prospect, Woodbridge, Northford, Madison, Beacon Falls, Branford, Cheshire, North Branford, East Haven, Naugatuck, Meriden, Ansonia and New Haven County.
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