Third Quarter Real Estate Trends: Rising Prices, Faster Sales, and Low Inventory
The third-quarter statistics are in, and as expected, median home prices have continued to rise, days on market (DOM) have decreased, and inventory remains historically low.
Home prices are climbing across the region, with properties frequently selling for more than their listing price. In Fairfield County, the sales-to-list price ratio is around 103%, reflecting strong demand. Bidding wars and multiple offers are still common, with extreme cases like a property in Greenwich selling for 54% above the asking price. Inventory has been consistently shrinking since 2020, which has contributed to these price increases, especially for well-maintained homes in desirable neighborhoods.
Homes are selling quickly, with an average of just 37 days on the market in Fairfield County and a mere 21 days in Greenwich. This is much faster than pre-pandemic times, when properties often took over three months to sell. However, homes that aren't move-in ready or are overpriced are sitting on the market a bit longer, offering potential opportunities for buyers willing to compromise.
Advice for Buyers: Be Prepared to Act Fast
If you’re a buyer, you may have lost several bidding wars in recent years. Fortunately, the recent 0.5% reduction in interest rates by the Federal Reserve makes homes slightly more affordable. When the right property becomes available, you’ll need to act quickly. If financing is required, ensure you have an updated pre-approval letter ready. Consider participating in a “power bid program,” where your loan is already approved, pending only an appraisal and contract. For cash buyers, proof of funds must be presented with the offer.
Working with a knowledgeable realtor can make all the difference. From crafting a competitive offer to navigating inspections and hiring a local attorney, having a professional by your side simplifies the complex home-buying process.
Advice for Sellers: Pricing and Presentation are Key
While sellers have the upper hand in this competitive market, success is not guaranteed. Proper pricing and presentation are crucial to selling quickly and for the best possible price. In today’s fast-paced market, if a property sits on the market for more than two weeks without offers, it’s often a sign that the home is overpriced.
Staging or decluttering a home can significantly enhance its appeal, attracting more potential buyers and generating competitive offers. The goal is to create enough interest to secure the most favorable terms. Ultimately, the sale price is determined by how much a buyer is willing to pay at that specific moment.
With fall in full swing and the vibrant foliage adding to the charm, this season presents a small window of opportunity for sellers to close a deal before winter sets in.
