Photo from Hoye Home Team
Originally Posted On: https://www.hoyehometeam.com/westhartfordct-realestate-market-insight-11033-2/
As you follow the news, you’re likely seeing headlines discussing what’s going on in today’s housing market. Chances are high that some of the more recent storylines you’ve come across mention terms like cooling or slowing when talking about where the market is headed.
But what do these terms mean? The housing market today is anything but normal, and it still remains an incredibly strong sellers’ market, especially in West Hartford, CT when compared to the few years leading up to the pandemic. With that in mind, what can previous years tell us about today’s real estate market and if it’s truly slowing? Are We’re Still Seeing Above Average Number of Sales in West Hartford CT. You may see the national headlines about a drop in home sales. But are those headlines telling the full story? The most recent Existing Home Sales Report from the National Association of Realtors (NAR) does show a drop of about 2% from July to August. But the month-over-month decline doesn’t provide the full picture (see graph below):
As the graph shows, historical context is key. Today’s home sales are well ahead of some of the previous years that led up to the health crisis. That means buyers are still in the market, which is great news if you’re planning to list your home.
West Hartford CT Show Steady Increase in Sales
West Hartford has shown a steady increase in single family homes sales since 2017.
West Hartford CT Sales Volume 17% higher compared to 2019
West Hartford CT Single Family Homes Pre-Pandemic sales volume 2019 vs 2021. You can see that every month in 2021 except June shows a large leap in sales volume when compared to the pre-pandemic sales volume of 2019. Overall, there has been a 17% increase in Single Family Homes Sales Volume in West Hartford CT comparing the Pre-Pandemic 2019 numbers vs 2021 year to date.
Nationally Houses Are Selling Faster Than Usual
When headlines mention the market is slowing, sellers may naturally wonder if their house will sell as quickly as they’d like. According to the most recent Realtors Confidence Index from NAR, homes are still selling at record speed (see graph below): Again, if we look back at data from previous years, we can see the average time on market – 17 days – means homes are selling faster than a normal pace.
West Hartford CT Houses Are Selling Faster Than Pre-Pandemic levels!
The median days on the market for single family homes in West Hartford went from a median of 36 days on market in 2019 to a median of 14 days in 2021. A 63% decrease in Days on Market from pre-pandemic levels.
Bidding Wars Are Still the Norm
The Realtors Confidence Index from NAR also shows a drop in the average number of offers homes are receiving in August, and many headlines may simply focus there without providing the important context (see graph below):
Again, it’s important to compare today’s market to trends from recent years. Currently, the average number of offers per listing is higher than 39 of the previous 45 months. That means the likelihood of a bidding war on your home is still high. And the number of offers your house receives can have a major influence on the final sale price.
Homes are still receiving multiple offers in West Hartford CT
The West Hartford fall market is leveling off at 100% Closed Price to List Price Ratio. Some homes are still receiving multiple offers and going above the asking price. Most are going for asking or very close to asking price.
So, Is the Market Slowing Down?
While there will likely be small declines/increases in the month-to-month data for the rest of the year. It is important to keep historical context in mind when determining what’s happening in today’s market. Odeta Kushi, Deputy Chief Economist at First American, put it best recently, saying: “It’s not the white-hot market from earlier in the year & it’s not the 2020 market benefiting from a wave of pent-up demand but make no mistake this is still a hot housing market.”
Don’t let headlines make you rethink listing your home this fall. Selling today means you can still take advantage of high buyer demand, low inventory, low mortgage rates, possible multiple offers, and a quick sale. If you’re thinking of selling your house, let’s connect and discuss why this fall or next spring is the perfect time to do so.