With real estate sales reaching record highs all over the country, inventory has taken a hit. While many homes are available in the Fairfield County real estate market, the demand for such homes has rendered current inventory levels inadequate.
Typically, the luxury market fluctuates independent of the average real estate market, but this dynamic has recently shifted. There are far fewer luxury homes available and far more luxury buyers looking to enter the market. In particular, low inventory and high demand for New Canaan luxury real estate have created a strong seller’s market.
The influx of demand for Darien and New Canaan real estate is coming from millennials. The largest population group in the United States as of 2019, millennials are now at the point in their careers where they’re ready to buy their first home.
The combination of remote work, pandemic-related shut-downs, and low-interest rates are what kick-started the increased demand among millennials for bigger homes. People are paying for more living space to accommodate doing more at home — work, school, exercise, and spending time outdoors.
Interest rates are inching upward and will likely continue for 2022. Current rates are already hovering around 4%, compared to historic low rates during 2021 that dipped below 2%. Rate increases will affect refinancing and home equity loans, but buyers determined to purchase New Canaan, Westport, or Darien homes for sale likely won’t be deterred. This is especially true for luxury buyers, who tend to have more equity to work with when buying a Fairfield County home.
Fees for second-home investments will likely increase during 2022—but once again, it probably won’t influence multi-property real estate investors because they have the resources to absorb such fees. Rising interest rates are more likely to impact refinancing and first-time homebuyers. First-time homebuyers don’t have equity to leverage, so interest rates tend to slow them down.
If you’re considering selling your luxury Fairfield County home, now is a great time to cash in. The likelihood of receiving multiple bids above the asking price is substantial. The key is putting a pristine home on the market is to list it at a fair price. Even though inventory is low, people will not overpay for a luxury home that needs work or appears to be poorly maintained. Prepare your Darien home for the market by finishing repairs, cleaning out personal items, and acquiring professional pictures with the help of a realtor. An experienced Fairfield County real estate agent can help establish a fair price, put together an online listing, and promote your home to qualified buyers.
It’s understandable to be apprehensive about entering a competitive luxury real estate market—especially as a buyer. However, it’s still possible to buy a Fairfield County home at a reasonable price in 2022. The key is to have your finances in order with the best possible realtor by your side. Get pre-approved or use a bridge loan, so you’re ready to put cash down quickly. Be prepared, but also be patient about what you can’t control. It might take time to find the home you want.
With that said, you’ll need to act fast once you find the Fairfield County real estate you want. Talk with your real estate agent beforehand about the process and establish a plan when making an offer on a home with multiple bids. This enables you to move quickly and reduces stress. Make sure you’re using an experienced, local realtor with connections and knowledge to place competitive bids.