Home Sales Fall, Prices Remain High

The big question in real estate today is if the real estate boom has finally slowed down. In Easton the number of closed sales and pending sales have been significantly lower than last September. The town registered nine single family pending sales and eight closed sales in September of 2021. In contrast, there were 20 closed sales in September 2020.

These numbers reflect an interesting change in the real estate volume in town. Inventory is still low which is depressing sales. In September 2020, 183 houses were listed year-to-date in Easton. This year, Easton registered 149.

The market is still active and the demand is still high. Renovated houses and prime location properties are closing faster than ever. The houses have been sold on average in 50 days in Easton. This includes the whole process, from submitting an offer to the closing date. Last year, the process averaged 61 days. Lenders are working hard to speed up the process in order to make their clients’ offers more appealing to sellers. 

Extremely high prices are the biggest concern for buyers in this market. Most buyers are apprehensive that soon they will no longer be able to afford their dream home. Concerns about inflation are a factor in the economy and the same is true in local real estate.

Easton had a modest decrease of 5.6% in median sales prices this September compared to September of last year. The median price averaged $642,500 in 2020 and $606,500 this year. Despite the slow decline, the prices are still high. The town had an increase of 29.5% in median price sales: $725,000 in 2021, from $560,000 in 2020.

The market will likely remain brisk in the months to come. According to Freddie Mac, a government-sponsored corporation that sells mortgage loans to investors, the real estate market sales are expected to remain strong in 2022.

According to the company’s quarterly forecast report, home sales are anticipated to reach 6.8 million in 2021 and remain strong in 2022. Home sales were 6.5 million in 2020. Zillow’s website reports that home values in the United States increased 18.4% last year, and they are predicting a surge of 13.6% in 2022.

The ongoing housing shortage is still one of the main reasons for this sustained spike in house prices. The inventory remains below normal levels in Fairfield County and Easton. It was low during the pandemic, and it got worse due to unforeseen increases in home sales. The current real estate market would slow down if the number of houses in the market went up.

Another important mitigating factor is affordability. The high prices are driving buyers away from the market. A supply and demand levels imbalance would be the biggest ingredient to shake up the market again. 

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