As Home Prices In CT Rise, Buyers Are Moving Fast With The Offers


It was new to Coldwell Banker agent Judy Michaelis – don’t bother visiting this house without a home inspector.

Michaelis’ clients, who wanted to visit a home in Westport, paid $ 1,500 to bring one and – if they liked it – to show their approval on the spot.

“It worked,” Michaelis said. “They loved what they saw.

As New York City residents prowl relentlessly through Connecticut cities in search of weekend homes – for a respite from city life from COVID-19, or to put city life behind them for more. good – there is no shortage of real estate stories about multiple deals, deals and efforts. to sweeten business.

There are also many stories of homes under contract within days of entering the market, frustrating buyers who scramble to put together an offer.

“What is talking?” Money speaks, ”said Joy Kim Metalios, Managing Director and Associate Broker of Metalios / Houlihan Lawrence Group in Greenwich. “What is the purchase price? What are the terms? Money is always gold. Since we are in a rising market, we see a lot of valuations that are not valued. So having a buyer with cash, where you won’t have a valuation problem, is huge. “

January home sales in Connecticut hit their highest level in 15 years, The Warren Group reported this week, with the statewide median home price hitting an all-time high of $ 300,000 each year in January, up 19.4% from the equivalent median. residency in January 2020.

In its own analysis last week, Berkshire Hathaway HomeServices New England Properties reported an increase of 22% in the median Connecticut home price sold in the first two months of 2021, including single-family homes, condominiums, and townhouses.

Metalios said each of its recent deals has gone to what realtors call “the best and last deal.” Most buyers are still from New York; others who left California for rentals in Fairfield and Westchester County now decide to stay.

“Because the market is so strong for sellers, their owners say, ‘Oh, we’re going to put our house on the market now, sorry, you have to go. Said Metalios. “Now they’re really freaked out. “

The market is putting pressure on buyers at all ends of the spectrum, including Heloise Nana, a mother of two in Stamford, who is supported through a first-time homebuyers program run by the Fund. housing development.

CEO of the Stamford-based nonprofit Joan Carty said Nana was one of many HDF clients to be kicked out of homes that were within their reach until last year.

“We are keenly aware of the dwindling inventory and increasing demand,” Carty said in an email. “Some of our clients … have been kicked out.”

In addition to HDF, Nana has worked closely with a real estate agent, who sends announcements daily.

“It used to be expensive for me, but now it’s out of reach,” Nana said. “A few years ago, there were still $ 300,000 and $ 350,000 of condos or houses that I [could] look, but the same house is currently at $ 550,000 or $ 600,000.

“As I look at these houses, I don’t even have the chance to speak with [my agent] to see the possibilities, ”she continued. “She’ll say, ‘Oh no, this house is no longer on the market.'”

Buying on sight – “a risky choice”

First-time home buyer Allesandra Pane spent most of the winter visiting open houses in Fairfield, where she grew up.

“It was just very overwhelming [and] it’s been like that ever since, ”Pane said. “It’s a really intense process. … It’s like a race.

Pane’s first open house was a real eye-opener. “When we got there they were like, ‘Okay, so we need the final and the best [offers] at 5 pm today, ”she said. “The house had just been put on the market a few days before. It was our first time going out, and we were like, “Well, we love the house but we’re not ready to bid that quickly. “

As they navigate COVID-19 infection rates, low interest rates, and new online listings every day, shoppers flock to listings as soon as they hit the market – by offering deals that in many cases sellers are reluctant to leave on the table.

As of February, more than 6,650 homes sold statewide, according to Berkshire Hathaway – a 24% increase from the previous year, suggesting that the 2020 pandemic market will be sustained this year.

In the strip of Fairfield County towns facing Long Island Sound or just inland from Greenwich to Stratford, only Norwalk and Shelton have yet to generate an increase of at least a third over the first two months of 2020.

But again, the cauldron begins to simmer. This week, it took just a few days to sell a modest cloak perched on Devils Garden Road, on the outskirts of the expensive Rowayton neighborhood in Norwalk, a 25% increase over what the owner paid for three years. earlier.

For those shoppers who lost, the nearest “comp” on Witch Lane – three miles away – was already under contract a few days before, after less than two weeks on the market. This seller got every penny of the roughly $ 600,000 he wanted, a 40% premium over the price he paid in 2014.

In January, Redfin described the 2021 market as one of the most competitive on record, with 56% of monthly transactions generating multiple offers on its online platform.

As buyers outbid other buyers, Redfin said a significant number go without any physical viewing of properties, making their decision based on photos, virtual tours and home inspection reports they order if they go that far.

“It can be a risky choice for sellers to accept … [buyers] can always change their mind when they see it, ”said Peg Koellmer, an agent with the Wilton office of Berkshire Hathaway, in an email.

Michaelis of Coldwell Banker said some buyers would assume a home has a problem if it comes back on the market and drop it to the bottom of the list.

“I almost think the most important thing in my job right now is choosing the right deal,” Michaelis said. “If you pick the wrong deal and it comes back to market, you’re no longer the belle of the ball.”

Monica Jorge, estate agent at Berkshire Hathaway in Southington, said buyers on fixed budgets who lose housing deals have no choice but to start their search again.

“Fortunately, none of my buyers are about to feel defeated… yet,” Jorge said in an email. “I had an open house last week and most of the buyers, especially those who have [Federal Housing Authority] funding or down payment assistance – are exhausted with limited options to stay competitive. It is a huge problem.; 203-842-2545; @casoulman

Source link

Leave A Reply

Your email address will not be published.