Connecticut is number 2 out of all states in terms of Google searches for "sell my home", according to RubyHome, a luxury marketing site. After a year of rising interest rates, but also double-digit sales price increases, more people are considering whether this is the time to cash out. It would make sense for Connecticut to be near the top of that list, given the high average age of the State's residents. It could also be that the new residents who flooded into our region during the early months of COVID have decided that it's time to go back to wherever they came from, most likely New York City. There is anecdotal evidence for this, because rental rates in the five boroughs have skyrocketed, after falling in 2020.
What does this mean for buyers and sellers?
If you are a seller, it's time to make a decision. If you are planning to sell, you may want to list before everyone else does, especially if anything about your home might make it difficult to sell in a market where buyers have more choices. In addition, it's not clear what mortgage rates will do, but, if they continue to climb, you may have fewer people who can afford to purchase your home.
If you are a buyer, there's hope for your search! More listings will make it easier to find what you want, and more likely that your offer will prevail, just by doing the math. In addition, a shift toward more of a buyer's market will tend to make sellers more reasonable, both in pricing and in negotiations. Also, it may not be as hard to get concessions during the inspection period, if there aren't other buyers lined up behind you. As an added bonus, you will buy before rates go up any further.
greater supply will help demand
Whatever your position in the market, a greater supply will help demand to stabilize with supply. Anything that gets us to a stable stasis point is a good thing. It may likely mean a soft landing, after a couple of years of explosive buying and rapidly rising prices. That's good for everyone, because it could settle down at that level for a good long time, and we will all win.