Connecticut is among New England states that will see continued housing demand and sales in 2017, driven largely by first-time buyers, according to a fresh market-outlook report.
“The New England housing market shows promise of continued growth early in 2017, given the combination of low interest rates and ongoing demand among first-time buyers, especially in cities and surrounding areas,” said Dan Breault, executive vice president and regional director at RE/MAX Integra, New England.
Affordability will remain the key factor in driving sales, as inventory is low, Breault said. First-time buyers and Millennials represent a dominating force across New England, as they are rapidly purchasing single-family homes and condos in proximity to cities, he added.
Hartford, Boston, Providence, R.I., Portland, Maine, Burlington, Vt., and Portsmouth, N.H. are predicted to see increases in average residential sales price in 2017, illustrating the buyer power of Millennials, he said.
Consumer confidence among move-up buyers is expected to grow in some major markets across New England, including Hartford, Boston and Burlington, the report found.
In Connecticut, highly populated areas like Hartford, which reports an 18 percent increase in average residential price year-over-year, will continue to experience strong demand, the report states. Demand for affordable, move-in ready homes close to cities will continue to drive the market here, with single-family homes dominating. By the end of the year, the Hartford market is expected to show the first signs of balancing.
Other areas, such as New Haven, are reporting a 3 percent increase in number of units sold year-over-year and a general trend of decreasing average days on market over the last four years, which is expected to continue.
