Region may be headed toward seller's market
The region's real-estate market, long in a period in which buyers held sway, may be poised for a turnaround.
Sales and prices of local single-family homes both shot up in the first quarter of the year, fueled by lower real estate inventory and more buyers.
The Eastern Connecticut Association of Realtors, which covers both New London and Windham counties, released first-quarter statistics last week showing the median price of a single-family home in the area increased by nearly 6 percent over last year. Sales rose even faster, up 6.5 percent.
"The Realtors are seeing a lot of activity," said Susy Hurlbert, chief executive of the association known as ECAR. "They have seen some bidding wars. ... It is beginning to turn into a seller's market."
Hurlbert pointed to higher median prices — $190,500 for a single-family home in the first quarter of this year compared with $179,900 in the same period last year — as well as low inventory as reasons why the market may be turning. In addition, the average days on market for a local home fell by nearly 14 percent over the same period.
"They are selling faster and at a considerably higher median,"Hurlbert said. "That's good news for sellers."
Hurlbert said she has heard anecdotal information that new construction is starting to pick up, particularly in Ledyard, possibly affecting the sale of older Colonials in the $350,000 range. She also is hearing that the market in East Lyme is picking up in the low $500,000 range that has been long in the doldrums.
She said with unemployment nationwide at a nine-year low and personal income in Connecticut up 4.6 percent so far this year, she expects real estate to remain hot but not overcharged. She added that potential buyers worried about higher mortgage rates in the future also have been flooding the market.
She added that many people are realizing it's often cheaper to buy a home than rent. The average mortgage on a mid-range home is about $1,267, while the average two-bedroom apartment in Hartford is about $1,541, she said.
"That may be driving home purchases as well," she said.
Hurlbert had no explanation for one phenomenon: Windham County's relatively better performance than New London County in median-price increases. According to the latest statistics, New London County has a higher median price of $200,000, but its increase over the past year was only 2.6 percent compared with Windham's 14.9 percent.
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