Southern Connectiuct Real Estate Market Analysis – August

Clients and Friends,

The following is the August 2024 Southern Connecticut Real Estate Market Analysis.  In preparing this report every month, I keep myself up to date on the market economics for all Southern Connecticut.  I have a financial background (MBA in finance), and I enjoy analyzing detailed financial data so I can maintain a good understanding of the market.  I then use this knowledge to help my clients (both buyers and sellers) understand the market and get them the best deal possible.

As previously reported, the National Association of Realtors (NAR) has reached a settlement in the litigation of claims brought on behalf of home sellers related to broker commissions.  The litigation was in part a result of realtors steering buyers to homes which paid higher commissions to the buyer’s agent.  Historically, commissions were paid by the seller, and the split between the buying and selling brokers was communicated to all parties by the various multiple listing services.  Effective August 17^th  as part of the settlement the multiple listing service will not be allowed to provide any commission information. Additionally, it is a federal requirement that all buyers must sign a representation agreement with their agent prior to touring any homes, and this agreement will identify the maximum commission that the agent will be allowed to receive from the seller, sellers broker or buyer.  Real estate commissions have always been open for negotiations, and with the new regulations it is very important for both sellers and buyers discuss the various commission options prior to signing a representation agreement.

Single family home sales for July 2024 in Stamford, Greenwich, Darien, New Canaan, and Norwalk were 224 units vs. 221 units in June 2024, 222 in July 2023, and 291 in July 2022.  The best leading indicator for future sales is homes with accepted offers/under contract.  In Stamford as of August 8^th, there were 99 homes with accepted offers/under contract, which is less than last month (112), but slightly higher than this time last year (94).  Stamford year-to-date sales as of 8/8/24 was 332 units, higher than last year (309), but much lower than 2022 (474 homes).   I reviewed average selling price, median selling price, and selling price per square foot for all 5 towns, and on an overall basis prices are still increasing, but I think the rate of the increase seems to be slowing down a bit.  It is still a very strong sellers’ market, but, from July 1 – August 8th, 75% of the single-family homes that sold were at, or over, the list price.  Last month this number was 79%, so it is a bit lower – we will see if this is any kind of trend.  Inventories still control the market, and over the last 3 months they have remained about the same.

Stamford condo sales in July were 56 units vs. 62 in June and 53 in July 2023.  In Stamford, 83 condos had accepted offers/under contract as of August 8th versus 90 in July, and 92 in August 2023.  As reported the last several months, condo sales have also been severely impacted by the lack of inventory.  Similar to single family homes, condo prices are holding firm.  As of August 8th, total condo inventory in Stamford was only 48 homes, which is 1.2 months of supply.  In July 2020 the condo inventory in Stamford was 182 units, and in 2019 it was 253 units. Like single family homes, inventories are controlling the market   Since June 1st 84% of the condos that sold were at, or over, the list price.  Year to date, 73% of the condos have sold at, or over the list price.  This trend is still getting stronger as inventories are very low.

Interest rates for conforming loans on a national basis (20% and very good credit scores) are now in the mid 6% range.  This is a point lower than last month, and is lower than what I expected to see any time this year.  It will be very interesting to see if this changes over the next few month knowing that the Fed is under pressure to reduce rates.  Demand clearly remains very high, and (as I have been stating for months) I believe if interest rates go below 6% and stay there for a period of time it will lead to higher selling prices UNLESS inventories increase significantly (which is highly doubtful).  The real estate market is driven by supply and demand, and high demand with low supply means higher prices.

If you have any questions regarding this report or are interested in buying and/or selling a home, please contact me anytime.  If there is anyone you know who is interested in buying or selling a home, I would very much appreciate you giving them my name or sending me their email address and I will contact them.

To view the detail report please click on the below link.  Additionally, if you would like detail information on any town in Connecticut let me know and I will provide it.

https://drive.google.com/file/d/1_NyFrUP1m3bvg9LNkinxULDxFWegtjks/view?usp=sharing