It’s about that time! Spring and summer are typically known as the “busy buying seasons” in Southeastern CT real estate as moving conditions are favorable and more homeowners (and homebuyers) are shaking off the winter to begin fresh in the new year. And while the upcoming spring season was expected to be characteristically busy, it seems it’s about to get a lot busier!
According to a new study, it was revealed that the number of existing homeowners planning to buy new homes in Southeastern CT is about to increase dramatically. Many are moving up to luxury homes in areas like Mystic, Niantic, Old Saybrook, East Lyme, some are downsizing, and some are simply moving to new homes in the Southeastern CT area. So, why the big influx of homebuyers in local real estate? It has everything to do with the expanding category of homebuyers called “move up buyers.”
In fact, another study shows that “over 75% of these buyers will, in fact, be in that first category: a move-up buyer,” reported KCM.
“Move up buyers” are a group of Connecticut real estate purchasers who are realizing the time to buy is now— or those getting a head start on the busy season to avoid increasing rates and home prices. For instance, the past year had many homebuyers on the fence about whether the timing was right to purchase waterfront or oceanfront homes in CT and many decided to wait it out to observe the market.
That waiting game may not have proved to be the best decision given the market’s rapidly increasing rates. For many, the decision to wait ended up costing them more money as mortgage rates and home prices continue to spike. Take a look at this scenario posed by real estate insider, KCM:
Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 13.8% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $341,400. But, the $400,000 home would now be worth $455,200 (requiring a mortgage of $409,680).
Given that these rising rates are not showing many signs of slowing down, with prices projected to appreciate by over 4 percent and interest rates expected to see another full percentage point increase, homebuyers everywhere are no longer sitting on the real estate fence. This spring and summer, you can expect more competition for homes in Southeastern CT as more begin to enter the real estate market, realizing that the time is now to buy houses in Mystic, Niantic, Old Saybrook, East Lyme.
Are you ready to “move up” to luxury real estate in Southeastern CT? Ready to get a head start on the busy buying seasons ahead? Contact The Sullivan Group today to discuss your options and how you can get started now to beat the many homebuyers no longer on the fence.