July 5, 2021

Sellers are enjoying another year of record price gains, as buyers continue to compete for limited inventory, but how long can it all last?

Connecticut home sale prices are up to a new record, reaching a $335,000 in June 2021:

Ct home sale prices through June chart

Homes are still selling faster than ever! Homes are currently selling in a median of 17 days!

CT DOM June 2021 CHART

The raging sellers market has led to more sellers listing their homes to take advantage of current conditions. While 2020 was very light, new listing inventory is starting to approach that of prior years:

CT new listings jun 2021

This increase in inventory will help stabilize the market and supply will start to increase and eventually meet demand. 

AND EVEN MORE INVENTORY IS HEADED OUR WAY!

The majority of distress inventory has also missing from market since March 2020, when the foreclosure moratoriums began:

CT SS REO 2021 CHART

With foreclosure moratoriums set to end July 31, we can expect foreclosures to resume at their normal pace, and a 17 month backlog of foreclosures to come to market. This will add inventory, and more importantly - distressed foreclosure and short sale inventory at lower price points.  This will put downward pressure on existing home sale prices.

CT Eviction moratoriums are also ending!

This means any landlords that were hoping to evict before selling can now do so. Multifamily home sales have already almost doubled since last year, likely due to the additional draconian restrictions imposed on CT landlords who are now fed up and wish to exit the business altogether.

chart ct multifamily sales
WILL THE CT MARKET CRASH WHEN THIS NEW INVENTORY FLOODS THE MARKET?

Only time will tell, but if there's one thing that's for sure it's that this is most definitely the right time to sell!

Last Updated on August 16, 2021 by Minna Reid

About the author 

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

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