Many know that the Connecticut housing market had a record-breaking year in 2020, with more single-family homes sold than in the past 15 years.
But what does this mean moving forward?
A recent report by the Warren Group, a real estate research firm, outlines how the pandemic has impacted home sales in the state.
Single-Family Sales in Connecticut
The beginning of 2020 started strong, with slightly higher single-family sales in January, February, and March than the previous year. April through June 2020 had a decrease in sales, as people halted plans due to the pandemic.
The last six months of 2020, however, we saw single-family home sales take off. July, August, September, October, and December all had more than 4,000 single-family homes sold, with November just below the 4,000 mark.
In total, there were 38,641 single-family sales in Connecticut in 2020, a 16.6% increase from sales in 2019, and the most home sales since 2005.
The number of sales was not the only indication of a strong market. Median sale prices in 2020 were $300,000, and 15.4% increase from 2019, and the highest price on record in the state.
Factors Contributing to a Strong Housing Market
There were three main factors that contributed to Connecticut’s strong housing market in 2020, according to Timothy Warren, chief executive of the Warren Group:
- Low-interest mortgage rates
- Growing demand for second homes
- Ability to work remotely
“It was a remarkable turnaround because the real estate market has been essentially flat since the Great Recession.”Timothy Warren
As a contrast, year-over-year gain in median prices was less than 1% in 2019, compared to more than 16% in 2020. Properties in short supply, coupled with high competition from buyers, drove median sale prices up.
What this means for 2021’s Real Estate Market
Low inventory and low-mortgage rates remain, which means that this seller’s market is here to stay for the foreseeable future. Ryan Casey, agent at One + Company, sums it up:
“If you thought the 2020 real estate market was crazy, get ready for 2021! No matter the market, the most prepared sellers make the most amount of money. Hard work and constant communication is our foundation for a successful transaction.”Ryan Casey, One + Company
A knowledgeable agent will help you navigate this market whether you are a buyer or seller. Interested in learning more?