Hartford County registered 780 single-family contracts in April of 2014, compared to 845 during April of the previous year, a more than 7% decrease in activity.
Four months into the year, the chart appears to be showing a typical seasonal distribution with simply fewer deals than in 2013. This suggests that there is nothing unusual going on in the market, it’s just slower than it was last year.
As previously discussed, there has been a noticeable decline in buyer activity in the middle price bands that are some of the most active in the region, and often associated with first-time buyers. We have not heard any compelling arguments as to why this year is different.
My personal theory is that last year was extra busy because buyers had delayed their real estate activities in previous years, creating a backlog. With the economy in good shape in 2013, prices stabilizing, and mortgage interest rates low, there was a flurry of activity as the backlog cleared. This year, in 2014, we’ve stepped back to where we otherwise would be in a real estate recovery. This is the new normal, so we should get used to it.
It’s important for buyers and sellers to understand current dynamics, both at the County level and in their specific sub-markets, as they navigate the local real estate market. Whatever the real explanation turns out to be, we’re tracking the data and able to use it to help our clients.
