Connecticut 2020 Second Quarter Market Report Summary
Few things were more impacted by the global pandemic than the definition of ‘home.’
For many, home was a commodity, but it quickly transformed into a refuge. Home quickly turned into our offices and schools as most day-to-day activities needed to happen there due to the shutdowns and restrictions. These shifts caused long-term changes in how we live in, search for, and purchase our homes.
I cannot help but view this moment in time as an opportunity for both sellers and buyers. The migration patterns into our state from Manhattan and New York City boroughs, combined with pent-up demand from the first quarter, have resulted in multiple offers for properly priced homes that show beautifully online. Buyers are favoring single-family homes and, more so than in the recent past, opting for more space over the convenience of proximity. Historically low interest rates allow first-time home buyers to rethink other big purchases – like weddings – and seize the opportunity to own a home first… if they can find one. Inventory will continue to be the most significant factor in the months ahead. I expect an increase in new listings post-Labor Day in Fairfield County and along the Connecticut shoreline, especially once short-term renters and sellers who were previously waiting choose to list their homes for sale. With even a slight increase in new listings, I anticipate a robust fall market with continued momentum into next year.
While there is no doubt that outside forces will continue to impact the real estate market, I remain optimistic about our industry. Lead indicators are promising: online listing views are up 11% month over month, appointments are at their highest point so far this year, and BHHS ended the month of June with a 30% increase in contracts signed year over year. With new listings down 17%, buyer demand – the desire to own a home – is not being met.
COVID-19 is an unprecedented crisis. It has empowered our sales professionals to support their clients in the home selling and home buying process from beginning to end – even with little to no in-person interaction. At Berkshire Hathaway HomeServices, we have diligently been ahead of the technology curve facilitating this ‘new normal’. From a new make-an-offer platform to increasingly robust technology enabling the real estate experience to be conducted virtually, I am extremely confident that our digital capabilities are unmatched. And while technology is crucial, the ‘new normal’ has also revealed the importance of working with a sales associate who understands and respects your comfort level. They should be knowledgeable about showing virtually and navigating multiple offers; and backed by a team of resources – mortgage, insurance, home improvement, and moving services – to make your experience as seamless and stress-free as possible.
I hope you and those around you remain safe & healthy,