After a long period of quarantine, I’m finally able to drive back to the office to work. A lot has changed since the pandemic first broke out in terms of the local housing market, specifically because of the quarantine measures.
One thing that has changed is that people are reportedly leaving larger metropolitan areas like New York City to smaller areas like Connecticut; personally, I feel like the news has overblown just how massive the exodus has been, but it’s true that people are beginning to reconsider where they want to live because of the pandemic’s impact. To be honest, I’ve seen this trend building up steam ever since the federal tax guidance changed in 2018, which changed the treatment of mortgage interest.
Even if the news has overhyped how large the trend is, there has been an upswing in the number of Connecticut home purchases by New York residents. Some people have begun to realize that they don’t want to live in a large, crowded city. Having space away from others and privacy have become more attractive features in a residence than the convenience of living in the big city.
As such, there is an increasing demand for homes outside of metropolitan areas, and it makes sense that many people who were thinking about buying a home within the next couple of years have moved those plans forward, given global concerns about the spreading virus.
Not to mention that Connecticut homes look like they’re on sale when compared to New York home prices! If city homebuyers think a CT property seems discounted, they shouldn’t have any problems making offers at, or even above, asking price to secure the property because inventory is so low and competition is getting higher.
Though it doesn’t surprise me, I’m also finding that many buyers are not comfortable with making offers that mirror the current market. That’s why it’s so important to talk to a real estate agent and trust their guidance. Buyers often have their guards up against Realtors because they feel that the Realtor’s only interested in getting their commission. I’ll admit that there are some agents out there who don’t walk the ethical line, but I’d say that a majority of agents in our marketplace are really good at what they do. The 2008 housing crisis rooted out a lot of the bad players.
If rates stay low and buyers continue to migrate away from larger cities, the competition will continue to grow. If we see another spike in cases, I think we’ll see another challenging spring market for buyers in 2021.
So if you’re planning to buy, you need to be prepared. Your success will come down to how confident the seller is in your ability to close in a timely fashion, which is why you’ll want to have a secured pre-approval ready. Buyers are at a disadvantage in this market, so put yourself in a position to win by being the most prepared one making an offer on the property you love.
If you have any questions about securing your pre-approval or the real estate market in general, don’t hesitate to reach out to me. I’d love to help you navigate the market and successfully reach your goals.