2024 The Year Started on A Positive Note

Fairfield County – The dollar volume of closings in January for Single Family Homes was just over $1B with an increase in the average sales price of 10% from 2023.

Fairfield County – The dollar volume of closings in January for Condos was just over $200M with an increase in the average sales price of 1.5% from 2023.

New Haven County – The dollar volume of closings in January for Single Family Homes was just over $500M with an increase in the average sales price of 15% from 2023.

New Haven County – The dollar volume of closings in January for Condos was just over $1M with an increase in the average sales price of 17% from 2023.

 The FOMC met on January 30-31 and interest rates were kept unchanged. That was somewhat expected, giving the Fed more time to evaluate if the current rate will keep inflation at bay without impeding economic growth too much.

The next policy meeting is on March 19-20, this meeting is associated with a Summary of Economic Projections. Investors and analysts are expecting that rates will hold steady.

Analysts believe the future points to a rate cut by summer. This will depend on the path of inflation and the state of the economy. The Fed’s policy moves depend on what economic data projections are for the upcoming weeks, including employment, productivity, and measures of inflation. They also monitor financial markets, global developments, and credit conditions.

Source:  Investopedia

In Fairfield County and New Haven County we have seen an improvement in new listings by 14% over the past few weeks since December, maybe thanks to a 15% decrease in mortgage rates following the peak of 7.79% in October.

The next Federal Open Market Committee (FOMC) will be meeting on January 30/31.  Many experts believe that the Fed is going to hold rates steady at 5.25-5.50% however the FOMC has signaled several rate cuts throughout 2024 as inflation eases and the economy slows.  The following meeting will be on March 19/20. This meeting will be associated with a summary of the economic projects.

Fannie Mae surveyed a significant number of consumers that say they are expecting mortgage rates to keep falling over the next 12 months.  A vast shift in consumer expectations could free current homeowners from the mortgage lock-in effect* and increase the supply of new listings for sale in 2024.

*The lock-in effect is a disincentive for existing homeowners to sell their homes because they do not want to give up their low rates when buying a new home.

(Sources: Smart MLS, Federal Reserve, Freddie Mac, Investopedia & Fannie Mae)

Fourth Quarter Overview
2023 Real Estate Ended on An Optimistic Note

Fairfield County – The dollar volume of closings in the fourth quarter for Single Family Homes was just under $3.5 billion with an increase in the average sales price of 13.25% from 2022.

Fairfield County – The dollar volume of closings in the fourth quarter for Condos was just over $900M with an increase in the average sales price of 18% from 2022.

New Haven County – The dollar volume of closings in the fourth quarter for Single Family Homes was just under $2B with an increase in the average sales price of 9.82% from 2022.

New Haven County – The dollar volume of closings in the fourth quarter for Condos was just over $400M with an increase in the average sales price of 18.6% from 2022.

Source: SmartMLS 2024