January Contracts: Pins and Needles

2022-02-09 Hartford County Single-Family Contracts 2022-01

Hartford County began the year with 611 single-family contracts during the month of January. The total was well below the counts for the prior two years, but in line with the strong markets from 2016-2019.

This is the point of the real estate year where there is peak uncertainty. Inventory is traditionally at its lowest point because the prior year listings all expired (or sold) and new listings have not yet begun to come onto the market.

Uncertainty is especially high right now. There are only 407 single-family homes available in Hartford County. Last year at this time there were 696. In 2020 there were 1,820. In 2019 there were 2,173 … and 2019 was a strong market for activity that also bordered on being a seller’s market.

What’s going to happen in 2022? Will sellers appear so that buyers have properties to purchase?

It seems highly unlikely that there will be an overwhelming wave of listings that meaningfully changes the supply and demand dynamics. More likely buyers will fight it out over the houses that do become available, and bid prices higher as they compete.

We expect 2022 to be a market that strongly favors sellers. But since someone has to know where they will be moving in order to sell, there will be fewer opportunistic sellers. Even finding a rental can be challenging, so we definitely do not advise casually listing the place you currently live to try to make a quick buck. You’re likely to end up homeless.

For buyers, the big thing for 2022 is understanding the environment. The market is super-competive. Buyers need to be willing to bid over asking prices, and they need to optimize all the other terms of their offers. Deposit money, financing, inspections, closing timeline, and any other terms all need to be adjusted to benefit the seller as much as possible. Making offers contingent on the sale of a property is not viable right now.

We’re happy to talk through your options, feel free to reach out at any point.

2022-02-09 Hartford County Single-Family Contracts 2022-01 by Town