STATE OF THE MARKET: Connecticut Real Estate During Covid 19 - Reid Real Estate Group

STATE OF THE MARKET: Connecticut Real Estate During Covid 19

The Connecticut real estate market was off to a fantastic start in 2020, until came coronavirus. Governor Ned Lamont ordered a partial shutdown of the economy on March 24, causing significant turbulence to the future of the real estate market. As of today, a partial opening is set for May 20, 2020. 

THE IMMEDIATE EFFECT OF CORONAVIRUS ON THE CT MARKET:

While we only have numbers through the close of April, the market does not appear to have significantly impacted closed sales immediately, with April 2020 closed sales down just 8% from last April:

CT RE sales 2020

Sales prices of closed homes through April were also still on the rise, with April 2020 median closed sales prices at a 5 year peak at $261,000:

ct re sales prices 2020

Home marketing time remained at a 5 year low, even through April with the median days on market at just 43 days:

days on market chart

THE FUTURE EFFECT OF CORONAVIRUS ON THE CT MARKET:

While all seems well at onset, the true effect of the shutdown on the Connecticut real estate market is still unknown. The trouble lies with the sharp decrease in homes that have entered market. With both sellers and buyers uncertain and scared, new listing inventory has dropped by 15% in March, and a whopping 55% in April:

2020 New listings

This lack of inventory comes at a time when lenders are simultaneously tightening up lending criteria and buyers have less job security than ever before. With inventory currently at record lows, homes are still moving right now.  But what will happen when all those sellers waiting to list enter market and to a reduced buyer pool? A downturn is inevitable, and it is only a matter of time.

Last Updated on May 18, 2020 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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