Q1 2016 Connecticut Market Report
There were 1,606 units sold in First Quarter 2016. Single family home sales in Fairfield County increased by 4.74% YOY. The average sales price decreased by 0.91% YOY, but average sales volume increased by 3.79% ($956,512,000 vs $921,577,000). Condominium sales increased slightly by 0.73% and also increased in average price by 4.11% year over year. Average days on market for single family homes was 166 this quarter and 149 for condominiums. Average rental prices in 2016 were $2,631 per month.
State of Connecticut
Welcome to Berkshire Hathaway HomeServices New England Properties’ First Quarter 2016 Connecticut Market Report, our examination of the single family and condominium markets throughout Connecticut.
At the end of the First Quarter, unit sales and sales volume were up significantly for both single family homes and condominiums. Sales for single family homes jumped 17.28% and sales volume rose 10.59% year over year (YOY) while average price decreased 5.70%. Every county experienced increases in the number of sales this quarter when compared to last year. Windham County saw the largest increase in closings with a 50% increase year over year, while Hartford County sold the most units in the first quarter with 1,425 homes. Condominium sales increased by 6.87% and sales volume rose 5.09% while average price decreased by 1.66%. Middlesex and Tolland Counties experienced gains in average sales price (12.3% and 16.2% respectively) as well as number of sales. Across the state, lower prices spurred sales and kept the average days on market for a home consistent year over year.
According to the National Association of Realtors® Home Buyer and Seller Generational Trends study, the share of millennials buying in an urban or central city area decreased to 17% and the majority of buyers in all generations purchased homes in suburban areas Read More. Millennial buyers are also researching homes online and utilizing home value estimators in their search to aid in negotiations. In the First Quarter, these buyers purchased more homes at lower price points in Connecticut, on trend with the rest of the nation. Homes priced below the average in each market are moving quickly as demand is high and inventory continues to be low in most of the state. Homeowners looking to sell at or below the average in their market should consider listing their home early in the second quarter to satisfy these buyer’s needs.
Buyers not purchasing at this time are gravitating towards luxury rentals close to shopping, restaurants and outdoor entertainment. As reported by the Joint Center for Housing Studies of Harvard University, 37% of all households nationwide rent, the highest level since the mid-1960s. While millennial households make up the largest share, households aged 40 and over now account for the majority of all renters Read More. In order to meet these demands in Connecticut, there have been an influx of luxury rentals across the state ready for spring 2016 occupancy. Developers are also looking to build additional multifamily housing as evidenced by an increase in permits approved for buildings with over five residences in the First Quarter. Additionally, luxurious single family homes in Fairfield and Litchfield Counties have been listed for rent and successful in finding renters for $10,000+ per month.