In many parts of the country, renting is cheaper than buying. Connecticut, especially Greater New Haven, is not typical. Thanks to years--decades--of languishing prices, we are no longer an expensive place to buy a house. On the other hand, given our student population, and our arts/culture hub, we are one of the hottest rental markets across the United States. In fact, the last survey we saw showed us as second!
What does that mean for buyers?
It still is affordable for many to purchase, especially given the interest rates. Although there is a lot of competition, it is largely local, except for maybe the Shoreline. The rental market, thanks to Yale, is international. Listings are creeping up, and offers have been slightly slower to come in. Competitively, then, it's a little easier to buy.
Will there still be appreciation?
It appears that millennials will be forming households at a rapid rate going forward. Even though we have been told how different they are than their parents and grandparents, they seem to want many of the same things in a home, especially during the pandemic. So the supply going forward should keep prices up for years to come. There hasn't been much home construction for a long time, and that, right now at least, is backed up with regard to both supplies and labor.
What should sellers do?
There is still a need for more product, so keep those listings coming. Don't be greedy, and don't count your chickens before they hatch--a lot can happen before a closing takes place. You will, however, be in a great position to buy when prices are lowest, at the end of the year, if you sell now.
And Labor Day, the start of the fall market, is just around the corner for everyone!
