One of the most significant factors affecting the real estate market is mortgage rates and how stable they’ll be. According to Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association, prices are expected to remain steady at approximately 3.85 percent. Here’s what you need to know about the real estate market in Connecticut for 2020.
1. Up And Down Trends
Little Big Homes is one of the most accurate sources for forecasting real estate trends in 380 metropolitan regions, all 50 states, and the District of Columbia. According to the most recent statistics, the trend for home prices is that they’ll continue to increase. The three-year trend ending with the 4th quarter of 2021 indicates that the probability that home prices in Connecticut will be up is 77 percent.
2. Good News For Buyers
If you’re in the market for a home in Fairfield County, there are a lot of beautiful homes currently on the market. Savvy buyers are in a position to negotiate with sellers and get a better price.
3. Best Places For Real Estate Investments
New Haven is one of the best places in Connecticut in which to invest in real estate. The appreciation rates for real estate investments in New Haven have been approximately 1.5 percent to 2 percent. If the current rates remain consistent, the annual appreciation rate could be somewhere between 6 and 8 percent. The median home price in New Haven is currently $184,000.
4. The Market For Starter Homes
Now that the market is recovering from the housing slump, there’s a market for lower-priced homes in the $300,000 and under range. Once homes reach the $400,000 and up the price range, the market is a little slower, with homes in this price range on the market for an average of three and a half to five months.
5. Real Estate Tends For Military Personnel
Military personnel used to use their basic allowance for housing to buy a home in the community near their base rather than live in subsidized housing provided by the base. They’d live in the house for three to five years, the average length of time they were stationed at the base, then they’d sell. The trend now is to buy a home, and if they’re stationed elsewhere, rent the house for the time they’re away and come back to their home when they reach retirement age.
6. The Condominium Market
The housing market for millennials has changed. People are waiting longer to get married and start families. More people in this age bracket stay with a company for a few years then move to another area, which means there’s more of a market for condominiums. Millennials are drawn to condo communities because of the amenities they offer, which may include fitness centers, swimming pools, and dog parks. A lot of professionals who want a simple, maintenance-free lifestyle are in the market for condos.