Sellers still on top - for now...
Low inventory and low rates have spurred one of hottest sellers markets over the past few years, resulting in record high sale prices and fast marketing times!
Home sale prices skyrocket!
Connecticut home sales prices are at an all time high, with the state median at $355,000 mid year 2022!
Homes are selling faster than ever!
Connecticut homes are selling in an average of just 11 days on market in 2022!
Government pandemic interventions have led to an artificially inflated market, and it's time to pay the piper!
Mortgage rates have been steadily rising!
Historical lows are historical for a reason - they rarely happen. After being forced down for years to spur the economy, rates have been quickly rising over the last few months. Rising rates are making mortgages more expensive, and loans harder to get. This will lead to less demand for homes and fewer who qualify for mortgages.
Inflation has skyrocketed!
Along with mortgages becoming more expensive, so has everything else. Inflation is through the roof, forcing many families to squeeze to afford basic necessities. Graphs per the Federal Reserve Bank of St. Louis.
Wage growth has been disappointing.
Per the Economic Policy Institute, wage growth has not recovered, and wages are certainly not growing fast enough to keep up with inflation fueled rising costs.
Mortgage payments are higher than ever.
The average family now spends an average of over $2,100/month on their mortgage payments. Housing is now less affordable than ever before in history.
Home Sales are down year over year.
Predictably, changed economic conditions have resulted in a slowdown of sales.
Foreclosures and short sales are back!
Government shut down foreclosures for 18 months during the pandemic, creating a huge backlog of foreclosed homes that will now enter market.
Forbearance plans are ending!
Unfortunately, not everyone was able to get back on track, especially those who took the longest to exit. Less than 50% of those currently ending their forbearance are able to continue on with normal payments, and are entering some stage of loan workout options, or foreclosure, per black knight.
Foreclosures are ticking up.
Foreclosures restarted fall of 2021, and are rising quickly 6 months later. Increasing foreclosed inventory will relieve demand and put downward pressure on home prices.
Distress inventory is creeping back into the market place.
As foreclosures pick up speed and more folks turn to short sales to get out of their upside down homes, distress sales are starting to gain traction as a larger and growing percentage of market share. More to be expected.
CAN'T GET BACK ON TRACK?
WE CAN HELP YOU SELL AND AVOID FORECLOSURE, EVEN IF YOU OWE MORE THAN YOUR HOME IS WORTH!
Last Updated on July 12, 2022 by Minna Reid