Connecticut homes prices have increased less than one percent year over year, which places us as the 6th worst state for price depreciation. This is according to a report released by CoreLogic, a trusted real estate information source.
What does this mean for Connecticut? I publish monthly real estate stats for New Milford, and every few months for other towns we sell real estate in. As I keep saying, progress is slow in New Milford. Housing sales seems to have stabilized, however prices are still low and they fluctuate. We do not have any noticeable appreciation month to month. With our sales averaging around 20 a month, housing prices can be skewed by a foreclosure or two in one month, or an estate home in another. But looking year over year, the increase any seller might be looking for just isn’t there.
We tell our sellers, if you can sell, if you really want to sell, you have to price your home according to local market conditions, according to location, according to condition. You have to make your home as enticing as possible to be one of the magic 20 that make it to a closing table.
Connecticut did do better than 5 other states as far as price appreciation goes. Illinois, Delaware, Rhode Island, New Jersey and Alabama showed less appreciation than we did. Take a look at the average sale price and median sale price for New Milford, CT over the past 10 years. I think the story is very clear when you look at these numbers.
A buyer should find this very good news. Prices are appreciating, albeit slowly. That means the house they buy today won’t automatically lose value as soon as they sign on the dotted line. Rates are low, home prices are low, all good news.
What about those people sitting on the fence waiting for prices to drop even lower? Bad risk, the trends say otherwise. If you want to buy but are fence sitting, you better jump down off that fence before Connecticut shows more dramatic price increases. Although I don’t think they will ever rise like they did before, some states are seeing a greater than 6% increase. And that is not what a buyer is looking for these days!
But for sellers, it is not the best of news. We are not making up the amount that was lost fast enough to allow some people to sell. Still, there are ways to make it happen if you must sell. Short sales allow some to sell for less than what they owe the lender. Making your home as appealing as possible to a buyer, using the best marketing strategy that is available.
But there are some bright spots out there! Today I posted my usual market report for New Milford. The real estate absorption rate stands at 8 months. If no other homes come on the market it will take us 8 months to sell the current inventory. This is better than previous months. We have seen those numbers in the double digits! 6 months is a balanced market, that is the goal.