Multifamily home sales soar in New London and Windham counties amid shortage of rentals and single-family homes
The number of single-family home sales in New London and Windham counties dropped more than 8% year over year in the third quarter of 2021 while the median and average sale price each rose by more than 11%, indicative of a continuing lack of inventory, according to new housing statistics recently released by the Eastern Connecticut Association of Realtors.
The median single-family sale price across the counties has risen from $269,000 to $300,000, which ECAR's chief executive officer, Susy Hurlbert, said is the highest third-quarter figure since she started tracking stats in 2000.
She said the next-highest third-quarter median price was $270,000 in 2007, so we're seeing a large spike even compared to before the housing crash of 2008. The median sale price specifically for New London County rose to $312,500.
The data also show a 137% increase in the number of multifamily sales, from 83 to 197, and a 23% increase in the median sale price.
"The reason is that there is such an incredible demand for rentals," Hurlbert said. "The supply is very short, (so) there's an assurance that you're going to have tenants going forward."
Comparing July to September of this year to the same period last year, days on market is down all around. It's down 59% for single-family homes, 55% for condos, 44% for mobile, 25% for commercial, 18% for land and 6% for multifamily.
"Everything has been flying off the shelf, reflective of the hot housing market that everybody already knows about," Hurlbert said.
So, what's next?
Hurlbert said that according to Lawrence Yun, economist with the National Association of Realtors, "all indicators suggest that the housing market will soften next year."
She said that's because inflation will drive interest rates up, foreclosures will increase housing supply, and there will be more building. ECAR's stats show a nearly 29% increase in land sales over last year.
Hurlbert said Realtors are still seeing multiple offers on properties, and the average sale price for single-family homes is higher than the list price.
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