According recent MLS data, home sales prices have jumped dramatically in 2020. Sales statistics show the average sales price in Connecticut has climbed by $36,000 this year compared to last.
Kristin and Brandon Barrett just recently closed on a house in Glastonbury. It is the second home they’ve ever purchased. However, in this competitive seller’s market, the experience was a little different.
The Barretts describe the process they recently went through as “scary.” Prior to closing on their home, they found themselves in bidding wars over others.
“The first house we put an offer on there were 11 offers on that house,” said Kristin Barrett.
The young couple says they were close on two other homes. But even after making an offer well over the asking price they were outbid.
“We lost both of those offers by as close as a few thousand dollars,” said Brandon Barrett.
What the Barretts experienced is the product of a recent trend across the U.S. and in Connecticut.
According to numbers provided by the Connecticut REALTORS organization, using Smart MLS Data, the
The average listing price ($299,000) in Connecticut has risen nearly $30,000. The average sales price ($280,000) is up $36,000. There has also been an increase of $6 billion in total sales.
“It’s more active and more robust than we thought it was going to be,” said 2020 Connecticut REALTORS President Joanne Breen.
Breen says Connecticut was among the last states to recover from the last recession and there had been pent up demand even before.
“While other states around us have been pretty active and very busy for the last few years we were sort of staying flat,” she said.
A combination of an inventory deficit and a work-from-home fueled desire to move into bigger spaces has also contributed to the home sales boom.
“Ever since May, it has just been insanely busy,” added Breen.
Lower interest rates are also a factor making buyers more comfortable paying higher prices.
“Instead of buying the ticket price, at the end buyers are buying the mortgage payment,” said Glastonbury realtor, Linda Edelwich.
There is also an inventory deficit. So far there have been more than eleven hundred fewer homes listed this year than last.
“There is significant amount of lack of homes for sale,” said Edelwich. “That is helping drive up the prices for sellers.”
As for the Barretts, they are happy in their new home but advise future buyers to always make their best offer and don’t hesitate, making a decision.
“You kind of had to just pull the trigger as quick as you could,” said Kristin Barrett who explained she and her husband made an offer in the driveway of the home immediately after seeing it.