Real estate in Connecticut and across the United States is hot!
In Connecticut, home values have gone up nearly 20 percent over the past year according to data from Zillow. Real estate agents are talking about what’s called a seller’s market, where there is more demand than supply, which is contributing to this increase in sale prices. While sellers might have more incentive to make a move, they could face challenges when trying to buy a new home, leaving them wondering if selling is really a good idea. But now, it seems like those real estate scales might be shifting.
According to data from the real estate experts at HomeLight, more than 55% of agents in the Northeast said they’ve already seen high prices spur ‘carpe diem’ reactions in sellers, resulting in additional listings.
Here’s a look at which types of sellers might be ready to face the market:
One group of sellers that is likely to be motivated by high prices, according to 60% of agents in the HomeLight survey, are almost-retirees who are cashing out a few years earlier than planned to boost their savings. Moreover, in the Northeast, more than 73% of agents said that they are expecting almost-retirees to make this move.
A new home for empty-nesters
When the market is hot and your kids are grown, why wait to sell a house to make a move to a more practical place? This is a situation noticed by more than 59% of agents across the United States, who said that empty-nesters are ready to relocate to a more walkable neighborhood, or a community with less maintenance, trading their large homes for condos or one with fewer bedrooms.
With remote work becoming the norm across much of the United States, many people have traded city life for the suburbs or spaces with better access to nature. Additionally, 43% of agents said remote workers are headed for a more affordable city where their cash might stretch further.
From own to rent
Some agents are even noticing an interesting trend where homeowners are selling first or second homes to cash out in favor of renting until they find a new property to buy. More than 40% of agents in the survey across the country noted this trend, while in the Northeast, more than 29% of agents said they are seeing this trend among sellers.
What this means for buyers and sellers
For those who are ready to buy, more sellers are starting to take advantage of the current market. This means more inventory is starting to appear, and is likely to continue in the coming months.
Sellers who have been hesitant to list their home for sale, now is the time to act! As more people begin to list, home appreciation is expected to slow down.
It’s an interesting time to buy and sell, with market shifts affecting homeowners across the board. The best choice for your real estate goals will depend on a lot of factors. It’s wise to consult with an expert who can guide you through a strategy that will make sense now, as well as in the future.