In July 2020, Connecticut hit new records for single-family homes: 5,056 pending and 4,684 closed sales. This is the highest number of pending and closed sales in one month since the start of the MLS, with previous records dating back to 2004 and 2005.
Unlike many markets across the nation, Connecticut did not see a huge rebound after the housing market crash. Now, we’re experiencing a record-breaking summer, and a significant increase in average sale price (up over 16% compared to July 2019). And while this comes with some celebration, we must also consider what this recent surge of sales and rising prices means.
During a recent panel for Inman Connect Now, I shared my thoughts on this New Dynamic in the Northeast, including what advice to give to buyers and sellers.
What we know…and what we don’t know.
We know right now, that our suburban communities in Connecticut are seeing an influx of buyers. People who want larger spaces and home offices are leaving cities, and combined with low mortgage rates and low inventory, sales prices are rising.
We don’t know how long the health crisis will continue, how long people will want to be away from cities, how the election will impact the winter and spring market, or how long mortgage rates will remain low (though predictions look good there).
The worst thing we can say to consumers right now is, “The market is crazy!”
Sure, it is a bit crazy right now. In March, we didn’t know what to expect – and most weren’t expecting this. There are bidding wars and an incredible amount of leads. But that information isn’t helpful – to buyers or sellers.
Agents are thinking, “I want to do the business…but I’m not sure this is a smart choice for this client.”
It’s appropriate for us as real estate professionals to show our clients how quickly homes are selling and how much sale prices have gone up. We need to educate all of our buyers and sellers with these numbers.
It’s up to you to provide education around what is happening.
Every week, provide your community with the hard data. Arm them with real numbers so they can make informed decisions. You can do this a few different ways:
- Weekly show. Go Live on Facebook or Instagram every week and discuss what happened in your market over the past seven days. Screen share numbers from your MLS so people see the numbers.
- Blog posts. Again, pull numbers from your MLS, organize them into a table, and post as a blog. This can be done weekly or monthly.
- Share what is already out there. If your MLS or brokerage already compiles data into a graph or table each month, share that information. Bring it to listing appointments, share it on social media, and discuss what it means for both buyers and sellers.
This is a time when emotions are running high and people feel a “now or never” type of pressure. And so now is the time to educate, even more than you normally do. Step away from the hype, and go deep on the data.