Q&A talks to Realtor and Greater Hartford Association of Realtors Board President Rob Levine about the outlook for the region’s residential real estate market in 2020.
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Q&A talks to Realtor and Greater Hartford Association of Realtors Board President Rob Levine about the outlook for the region’s residential real estate market in 2020.
How did Greater Hartford’s residential real estate market fare in 2019?
According to recent numbers from the Greater Hartford Association of Realtors, we saw a 2.62-percent rise in closed sales through October, compared to a year earlier (5,459 sales vs. 5,602).
Even with that slight gain in sales, prices have been stable. The median sales price increased 0.41 percent (from $246,000 to $247,000).
We’ve also seen tightened inventory. It is still a great time to buy with interest rates at historically low levels.
What’s the 2020 Greater Hartford residential real estate market outlook?
The key for our housing market depends on keeping people and businesses in the state. Realtors do a great job of fighting for homeowner rights legislatively so we can keep people buying and selling in Greater Hartford and around the state.
A report that came out in the spring ranked Hartford in the nation’s top 10 places to live if you’re a Millennial. If we can continue to attract that market and prices remain stable, then our housing market will be a competitive one.
What factors (economic or otherwise) will have the biggest impact on the residential real estate market in 2020?
Because Greater Hartford has Millennials and a large portion of Baby Boomers, there is a unique opportunity for those looking to increase or downsize their living area. Legislation to help first-time homebuyers would go a long way in advancing our market. Our downtown has seen livable space increase with the popularity of the Yard Goats and the uptick in restaurants and breweries.
Affordability rates are high and interest rates remain historically low so getting that message to Millennials will be important to the growth of homeownership. There are always peaks and valleys to the market, so our challenge will be to increase the desirability of living and working in Greater Hartford.
What do you expect to see in terms of interest rates and the impact on homebuying?
Homeownership is still a great investment thanks to historically low mortgage rates. The cost of renting a renovated apartment building downtown is on the rise, making buying a home a real option.
As long as there is available inventory for all levels of income, then these low interest rates are a bonus. The only potential problem in the year ahead would be if the Federal Reserve raises short-term interest rates too quickly, which could slow growth.
What’s the outlook for new homebuilding in 2020?
Greater Hartford’s housing inventory is older so the space for new builds just isn’t there like in other areas of the state. That being said, there has been a flurry of housing renovations in our area. Younger buyers are looking for move-in ready houses so there is a market for older but updated homes.
