Last Updated: May 30, 2022

Is the Connecticut Real Estate Market Starting to Turn?

Written By: Barbara L. Pearce
finger pointing to charts and graphs

We all knew that the overheated state of real estate transactions had to slow sometime, and a good guess would be when the Fed started raising the cost of funds. Now that has happened for the first time, and we are already seeing higher interest rates, and more buyers priced out of the market. Houses are selling just a little bit more slowly, with fewer offers way over asking. It's also the beginning of summer, when the hectic pace of the spring calms down, especially in places dominated by universities--think New Haven--where vacations have begun.

None of this implies that it isn't a great time to sell. Supply is still very low, and there are plenty of buyers out there. It isn't perhaps the time to test an even higher price, but there is the chance now to be able to buy the next home. That will loosen up our industry's version of the supply chain, and make more sales happen. If you are a buyer, this is excellent news, and you should start trying to purchase again, if you had given up in despair. Summer is often a time when fewer people are looking, and it may be more possible than you think to get into a new place by fall.

Professionals always hope for a balanced market, with three to six months of supply, and enough demand to keep the market moving. If we are lucky, that's exactly where we are headed!

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