What goes up must come down! All Connecticut sellers have had a few years to enjoy strong price growth and buyer competition, including multifamily sellers, but what's up ahead?
Sellers of multifamily properties have seen their median sale prices at record highs approaching $300,000! Homes are also selling faster than ever, at a median marketing time of just 28 days:
That is fantastic news for current sellers, but there is one huge difference between the single family and multifamily market in Connecticut.
While single family housing stock has remained short, multifamily listings have actually increased by over 25% since June 2020, and closed listings have followed right along:
Why have multifamily listings been rising as others have not? The most obvious answer is continued government interference into landlord private property rights via the eviction moratorium, which was enacted March, 2020 and stayed in place through July 31, 2021. The moratorium forced landlords to house non paying tenants with no recourse. Such an unprecedented exercise in government overreach has been detrimental to landlords everywhere, making multifamily ownership riskier and less desirable than ever before, especially in an already tenant friendly state like Connecticut. Understandably, many landlords have decided to simply exit the business and sell their property.
The current hot sellers market has made it an ideal time to sell off undesirable property. However, the simple laws of supply and demand state that both cannot continue to rise simultaneously, which is what we are seeing here now in the CT multifamily market.
This unsustainable trend will soon change course, if it has not already.
Last Updated on October 18, 2021 by Minna Reid