CT REAL ESTATE REPORT: Sellers market still at record highs, but downturn is IMMINENT! - Reid Real Estate Group

CT REAL ESTATE REPORT: Sellers market still at record highs, but downturn is IMMINENT!

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!

ct sales prices 2022

Home sale prices skyrocket!

Connecticut home sales prices are at an all time high, with the state median at $355,000 mid year 2022!

ct days on market

Homes are selling faster than ever!

Connecticut homes are selling in an average of just 11 days on market in 2022!

What's ahead....

Government pandemic interventions have led to an artificially inflated market, and it's time to pay the piper!

Mortgage rates have been steadily rising!

mortgage rates

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!

inflation

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.

wage growth

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. 

affordability

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.

slowed sales 2022

Predictably, changed economic conditions have resulted in a slowdown of sales.

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!

forbearance exits

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.

foreclosure starts

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.

distress sales

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

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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