Is now the time to sell your home?
When making predictions on the Connecticut real estate market, experts track things such as the number of houses on the market, interest rates, supply chain issues, new construction projects, and in current times…the spread of Covid-19. One thing local Connecticut experts can agree on is that inventory is going to continue to play a major factor in the 2022 market. Historically we see a six month inventory supply, but in recent months that number has dropped down to only two. Tammy Felenstein, president of the Connecticut Association of Realtors, notes that inventory is low across all price points. What does this mean for buyers and sellers? It means the current supply in a given market could sell out in 2 months time leaving us in a sellers’ market.
Looking to sell your house in Connecticut? Here are a few more predictions for the 2022 housing market.
2022 will fall just short of record breaking
“Zillow’s forecast calls for 11% home value growth in 2022. That’s down from a projected 19.5% in 2021, a record year-end pace of home value appreciation, but would rank among the strongest years Zillow has tracked. Existing home sales are predicted to total 6.35 million, compared to an estimated 6.12 million this year. That would be the highest number of home sales in any year since 2006.” Zillow
Mortgage rates may rise, but inventory may rise as well
“The market is likely to cool compared to 2021, but it will still be active… It may still be a seller’s market in many areas, but there’s likely to be more opportunities and wiggle room for homebuyers. A ‘priced out’ buyer should be able to find many more options. Experts also reinforce that 2022’s housing market is not at all likely to crash — the conditions we’re seeing are nothing like those that led up to the crisis of 2008.” Andrina Valdes
Rents are expected to outpce home price growth over the next year
“Nationwide, rent growth went from minimal to double-digit pace in 2021 as the U.S. made substantial progress against the pandemic. With the rental vacancy rate continuing near its historic lows during the pandemic, in which just 5.7% to 6.8% of rental housing units are vacant at any point in time compared to 7% or more, historically, renters are also contending with limited supply and excess demand that leads to upward pressure on rents. In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth as rents continue to rebound from slower growth earlier in the pandemic.” Realtor.com
Curious what your home would sell for in the current market? Give me a call at 860-690-3141 or send an email to cindylbreckheimer@gmail.com for a free home value estimate.