David P. Gallitto took over in January as president of CT Realtors for 2023, at a time when the industry is facing challenges such as low inventory.Gallitto, a Middletown resident, has been a Realtor for two decades and is affiliated with the New Haven-based firm of Huntsman, Meade & Partners.CT Realtors advocates for the real […]
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David P. Gallitto took over in January as president of CT Realtors for 2023, at a time when the industry is facing challenges such as low inventory.
Gallitto, a Middletown resident, has been a Realtor for two decades and is affiliated with the New Haven-based firm of Huntsman, Meade & Partners.
CT Realtors advocates for the real estate industry and has 20,000 members.
Gallitto has been on CT Realtors’ board of directors for a decade, and has had several positions on its executive committee. He is also a director with the National Association of Realtors.
Part of his job is being vocal on legislative issues that impact the real estate industry and homeowners.
Gallitto will be leading CT Realtors for the entirety of 2023. In February, New Haven Biz chatted with Gallitto about the current real estate market in Connecticut and what he hopes to accomplish in the year ahead.
What challenges is the real estate industry facing?
The current market is quite unique, and something that I haven’t seen to this extent over my 20-year period (in real estate). We are in some challenging times. It is simply because of the lack of inventory.
(As of late February) in the entire state of Connecticut, for single family and condominiums, we only have 3,115 listings. Pre-pandemic, we were around 22,000. It is nothing that is going to be fixed overnight.
For the spring, we will get an influx of properties coming on the market, as we traditionally do. We are not going to get 15,000 more on the market.
Our indicators show that by mid-year to the end of the year, interest rates should be coming back down. We have had sort of the perfect storm, with a lack of inventory and an increase in interest rates. (As of late February, Bankrate.com reported the national average interest rate for a 30-year, fixed-rate mortgage was 6.77%.)
What message would you like to share with industry members?
As president and as the face of CT Realtors, it is important for me to stress this is something we can get through. We have seen fluctuations in the market in the past, and we have come out on the other side just fine.
We are going through a difficult time now, but that doesn’t mean we can’t come out from underneath this. It is just going to take perseverance and hard work.
What are your priorities for your new role?
I wish I could flip a switch and make it all better. My priority is to promote the message that it is still a great time to sell in the state of Connecticut, to ensure that buyers will have opportunities, and to be prepared for the upcoming market.
As a president, people look to you to lead, and to have the answers. The only thing that I can do is to be upfront and honest, and let them know the world is not ending, things are going to be OK.
I also like to always incorporate diverse ideas and to embrace new technology.
What are you seeing in the market for buyers and sellers?
What I’ve seen, both personally and what my colleagues tell me, is that sellers and buyers have had a little bit of a pause. That was aided by the holidays and the end of the year, which typically is a slow time for real estate.
Buyers have had to realize that their buying power has been diminished (due to higher interest rates). They have reset their expectations, as have sellers.
There are still multiple offers on properties, and sellers still have quite a few offers to select from. But we are not seeing $20,000, $30,000, $40,000, $50,000 over the asking price, as we were nine months ago.
CT Realtors regularly acts as an advocate to lawmakers. How would you characterize the association’s relationship with the legislature?
Connecticut Realtors is the largest trade association in the state, with over 20,000 members. It is important to us to have and foster a good relationship with our legislators in Hartford.
Oftentimes, there is legislation that will directly impact homeowners and what is required in homes, as well as impact us practitioners and the way we do business. Over the past five to six years, we have garnered a great relationship with our legislators.
Fostering that relationship is important for me on my watch.
Given our relationship and our numbers, when legislation comes up, whether it be introduced by a particular representative or senator or coming out of the state Department of Consumer Protection, we are now called to the table and asked for our opinion.
(Lawmakers) know that it is better to get the information, knowledge and wisdom from the Realtors with boots on the ground before that legislation is completely crafted and voted on.
What is your legislative agenda?
The only thing is inventory and what we can do to help spur new construction in the state of Connecticut. And to help first time homebuyers get into their properties.
About a month or so ago, CT Realtors, in concert with the Home Builders (& Remodelers Association of Central Connecticut), made a presentation to committees at the Legislative Office Building. It covered the state of real estate in Connecticut, what is impacting it and what isn’t.
If they didn’t know already, (lawmakers) now know the difficulties we are seeing.
Is there anything the legislature can do to help with the housing shortage?
The best way they can impact that currently is in connection with new construction. Maybe relax regulations or requirements for homebuilders to build homes.
Maybe look into low interest loans to allow homebuilders to put up a house or renovate a house. Do it in such a way that it allows a buyer to purchase that home.
The problem that we’ve been dealing with is, a lot of the pricing for all of the products have skyrocketed. I just had a roof done. A piece of plywood was $68 and it used to be $20.
Gone are the $350,000 houses with three bedrooms and 1.5 baths. If a homebuilder can construct a property in that price range, that would help.
What can Realtors do to boost inventory?
It’s our job as Realtors to speak with our clients on the sale and buy side as to their expectations and what we can do for them.
Someone may want to sell a home, but they are concerned they don’t have a place to go. There are ways you can craft contracts that will allow a seller to accept an offer, but contingent upon the seller finding suitable housing.
For buyers, there are programs like a 2-1 Buydown Mortgage (which allows buyers to pay lower rates during the first two years of their mortgage). It makes it more affordable for them to get into a particular home, then later, they can refinance at a lower interest rate.
What would you like your legacy to be?
As a president my legacy is preparing people for their roles in leadership. I am humbled that I’ve been put into this position as president.
What can I do? More so than anything, it is tapping someone on the shoulder and saying, ‘Hey listen, you can do this, I can tell that you are a leader. I need you to get involved.’
If there is anything I do as a president, it will be helping people realize (the leader) within themselves. And to do it with diversity, equity and inclusion. I believe that our association should be a reflection of the many diverse people we work with on a daily basis.
