Berkshire Hathaway releases 2018 first quarter Connecticut market report

Wallingford — Berkshire Hathaway HomeServices New England Properties has released its first quarter 2018 Connecticut market report, a valuable resource for anyone looking to buy or sell a home. The report examines the single-family and condominium markets throughout Connecticut and is an in-depth analysis of sales and emerging trends in the market.

Low inventory and multiple nor’easters affected the number of first quarter sales in Connecticut, however, home prices were 2.5 percent higher when compared to the first quarter of 2017.

Days on market for both single-family homes and condominiums are still low at 104 and 105 respectively, showing a strong demand for inventory. Luxury home sales — those sold for more than $2 million — saw a slight decrease of 11.1 percent (112 versus 126 sales) in the first quarter of the year when compared to 2017; however, 18 of the 112 sales were more than $5 million, compared to 14 sales in the first quarter of 2017.

The average price for luxury properties rose 6.0 percent this quarter to over $3.5 million. Fairfield County accounted for 92 percent of home sales over $2 million with the majority of the sales in Greenwich and Westport.

Sales professionals are reporting many active entry-level buyers in the market looking for similar-style homes.

Results from a recent survey by Realtor.com stated that the typical spring home buyer is on the hunt for a three-bedroom, two-bathroom house with a garage and updated kitchen. This correlates with sales data in that there was an increased demand for homes priced within the $300,000 and $600,000 range in the first three months of the year. While total single family home sales were down 8 percent year-over-year across the state, there were 10 percent more homes sold in this price range when compared to 2017.

The number of new building permits increased 67.6 percent when compared to January and February of 2017. With 749 total permits issued, the Department of Economic and Community Development reported that the last time numbers were this high was 2007!

Sixty-six percent of the permits issued so far this year have been for properties with five or more units — likely attributed to large developments in East Windsor and New Haven. Fairfield, Greenwich, Norwalk and Milford also had double digit new building permits in the first two months of the year.

Across the state, Berkshire Hathaway HomeServices sales executives saw an increase in activity in requests to pre-market and actively sell once-stalled developments.

Other good news for the state of Connecticut in regards to the housing market is that the number of foreclosures is decreasing. According to RealtyTrac data from February 2018, pre-foreclosures and bank owned properties are down in Connecticut year-over-year by 20.2 percent and 32.3 percent respectively.

Due to the lengthy foreclosure process, Connecticut was one of the last states to suffer the consequences from the downturn and the end finally appears to be in sight.

To view the full market report, visit www.bhhsneproperties.com/connecticut-marketreport