Market Update – March 2024

Our team is celebrating!  Both Kelly and Jeanne received the Five Star Professional award for 2024, based on consumer evaluations and production.  I was awarded the Rising Star designation, recognizing newer professionals who excel in client satisfaction.  We don’t take these awards lightly!  Buying and selling real estate can be fun, but also stressful, and we are honored to guide you through the process. We thank you for your trust.

As we begin the transition from winter to spring, the Spring market usually ramps up with an increase in buying and selling activity.  There are many serious buyers out looking for a home, evident in the robust Open House and showing activity.  Homes that are properly priced and prepped for sale are still seeing multiple offers over asking price.  Unfortunately, the lack of inventory seems to be the main issue again this year. We are STILL at low historic inventory levels, even compared to 2023, which was much lower than previous years.  Housing inventory for Fairfield and Easton fell by 36.4% and 21.7%, respectively, when comparing January 2023 and 2024.  However, prices are continuing to rise.  The median sales price rose by 36.4% in Fairfield and 12.2% in Easton as of January 31, 2023 vs 2024.

Despite the higher demand, sellers are still reluctant to put their house on the market because of the challenge of finding a suitable place to buy, given the inventory shortages in our market. Inventory should improve when we see interest rates become more manageable, but no one can say with certainty when that will happen. Before 2022, most homeowners were able to refinance with mortgage rates below 3.5%, which makes selling now far less attractive.  Until mortgage rates ease, inventory scarcity will remain.

The medium-term forecast is still for rates to drop but the market got ahead of itself only to reset when some economic indicators came in stronger than expected. Rates continue to vary significantly from borrower to borrower with credit score, down payment, loan size, property type, lock length, closing costs, and product all contributing to the ultimate rate.  Tim Martin, our mortgage partner at Guaranteed Rate understands the market and can help you sort through these details.

While this market can seem daunting at times, it’s still a very energetic market! Let me help you see the opportunities instead of the obstacles.    Please reach out if you are considering buying or selling or are just curious about the value of your home.