It’s been a rollercoaster of a few years for real estate, particularly in the Northeast.
The pandemic brought an economic downturn, but it also increased real estate values. Fueled by low interest rates and a move toward working from home, millions of people began buying homes, creating double-digit increases in property values and shrinking inventories.
So what will 2023 bring, now that inflation is easing and interest rates are dropping?
Locally, those forces haven’t brought much change in prices or demand, local experts say.
In Glastonbury, the trend of homes selling quickly and for above asking continues, says Kadji Anderson, a Realtor with Berkshire Hathaway Home Services. That’s because inventory is low and Glastonbury remains a popular option for families.
“I see a favorable 2023 for real estate locally. We’re going to see more homes coming on the market, and I don’t see price decreases happening, not in our market specifically.
“The drivers of a hot local real estate market are: We are an excellent community, we rank No. 4 in the state in terms of our schools, we have recreational programs for residents at all age levels, we have lots of parks and camps for kids and we have lots of programs for seniors too, along with senior living areas and health care centers, which are highly valued by people who want to age in place here.”
While home prices nationally are leveling off and even dropping, Kadji says that’s not happening yet here, in part because real estate in Connecticut was undervalued prior to the pandemic. In addition, Connecticut remains a popular place to live for people who work in cities.
“In the Northeast our home prices are much more sustainable because we’re still having folks from Boston and New York urban areas coming into the suburbs. In 2022 we saw a lot of movement of buyers from those cities into Connecticut, especially into Fairfield County. Now folks from those areas are realizing they can work anywhere and are looking at communities like Glastonbury.”
Dana Flanagan, a Realtor with Sotheby’s International Realty in Connecticut, Vermont and Florida, and president of International Real Estate at Wall Street Luxury, says the market is calmer this year than at the height of Covid and last year, but that demand and sales prices remain high.
“I don’t necessarily see the prices coming down in our market yet, it’s certainly not as crazy as it was a year ago, but because inventory is so low we’re still seeing multiple offers on properties.”
Inventory is tight, she added, because prospective sellers who might want to cash out the equity in their homes are also concerned about buying in a tight market.
“Where we’re seeing people who are winning in this market are those who have another home they already own, maybe even in another state, and they can sell their property here in a high-demand market and cash out that equity. If you have a good property and it shows well you’ll likely still get over the asking price and it will sell quickly. They’ll get a good return right now on their investment.”
She says local real estate agents are waiting to see if the spring will bring an opening up of the real estate market and an expansion of inventory with more homes coming on the market.
“I think that will happen as interest rates level off and I do think they’re starting to level off now.”
Dana Flanagan
Realtor with Sotheby's International Realty, Licensed in CT, FL, & VT
President of International Real Estate at Wall Street Luxury
860-796-0562
Email: dana@flanaganrealtygroup.com
Online: Williampitt.com/agents/danaflanagan
On Facebook: @Dana.flanagan.7
On Instagram: @Danaflanaganofficial
Kadji Anderson, Realtor, Berkshire Hathaway Home Services
2790 Main St.
Office: 860-633-3674
Cell: 860-836-2721
Email: kadjianderson@bhhsne.com
Online: kadjianderson.bhhsneproperties.com
On Facebook and Instagram: @KadjiAnderson
