Whether you are looking to buy a house in Connecticut or put your current home on the market, it is important that you consider the state of the Connecticut Housing Market in 2022. 

Unfortunately, the COVID-19 pandemic and subsequent global events have impacted the housing market in unprecedented ways and left buyers and sellers feeling uncertain on what they should be doing. 

With an increased understanding of the housing market, you can make sure you get the most out of the market. You should expand your knowledge to the specific area of Connecticut that you are interested in, for example, New Haven County or New London County.  

When you decide to sell your home, you want to ensure that there is a demand for your property and you can sell it for a good price. If you don’t sell at the right time, you may find that it becomes a stressful and time-consuming process, and you may even lose money. 

When you are looking to buy a new house, you want to ensure there are plenty of options for you to choose from, at a reasonable price. 

Understanding the housing market in Connecticut 2022 is the best way to make an informed decision, and buy or sell your home with ease. 

Here is some important information that will help you on your journey. 

What to consider when looking at the state of the Connecticut housing market?

There are two main factors that you should keep an eye on when doing a Connecticut housing market forecast for 2022:

  • Housing Inventory
  • Mortgage interest rates

These two factors are expected to shape the Connecticut housing market in 2022. So, let’s talk more about them!

Housing Inventory

As mentioned earlier, the inventory shortage in 2021 was one of the main reasons that drove home prices up.

Since construction wasn’t happening, the homes that are available for sale on the market could barely keep up with the demand.

For this reason, the inventory continues to be an important part of any Connecticut housing market forecast in 2022.

Additionally, most foreclosures were put on pause in the past two years due to regulations related to COVID-19, which further added to the inventory problems.

But this year, it is expected that foreclosures will take place, which will release a large number of foreclosed properties that will become available for sale on the market.

However, near the end of 2021 going into 2022, the challenges that stood in the way of new home constructions are starting to get solved, and it’s expected that home construction will soon resume.

That would result in a healthier supply of homes for sale, which will directly affect home prices and slow down their appreciation.

Mortgage Interest Rates

Another factor that has shaped the market in the past two years is that mortgage interest rates were decreased, resulting in more people qualifying for a mortgage to buy a new home, driving the sales up. This was part of the COVID-19 mortgage relief program for real estate investors.

However, it is expected that in 2022 mortgage interest rates will increase again, which will disqualify a large number of people and remove them from the market as potential buyers.

And while this might decrease the demand that the market is currently seeing, our prediction in this Connecticut housing market forecast for 2022 is that the current demand is too high to be drastically affected by the increase in mortgage interest rates.

Increase in house prices

With all this in mind, the high demand for properties has led to an increase in the average house price in Connecticut. It is now sitting at approximately $350,000. The biggest change in price is in Fairfield County, especially Greenwich and Westport.  

When you choose to buy or sell your home in Connecticut, it is vital that you do it at the right time. If you need additional support, contact our specialist team today for more help. 

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Venture One Realty has recognized that Connecticut Homeowners need and want a way to keep more of their hard earned equity when selling their home. Our Clients save Thousands of Dollars without sacrificing the services that are critical to maximizing the sale price of their home. We offer all the same MLS exposure, marketing tools, technology, quality of service, expertise, and personal attention as the Other Realty Companies but without the costly Real Estate Commission. You pay only 1%.

We are a full-service Real Estate Agency that will manage the entire home selling process from listing to closing. You get everything you would expect from a traditional Real Estate Agent but with the added benefit of working with a technology-enabled and customer-focused team of Agents. Our results speak for themselves.

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