Sound Off Serena Richard Is now a good time to buy in property Fairfield County?
Timing the housing market is a difficult and almost impossible feat. However, there are currently several indicators that should help put Connecticut buyers at ease.
1. Housing prices have pulled back substantially and in some parts of lower Fairfield County, they have already fallen to pre-recession levels.
2. Despite the above, it’s still a buyer’s market across all price ranges. The current absorption rate in lower Fairfield County, a metric that assesses how long it takes to sell a house, is above six months. Basically, that means there is a lot of inventory and that inventory is taking longer to sell, thus giving buyers more choices.
3. Winter has historically offered good value. In fact, The Journal of Housing Research indicates home prices are lower in the winter months, which are rapidly approaching.
4. The Tax Cuts and Jobs Act, which negatively impacts high tax states, should provide a slight edge to Connecticut as it competes for the same home buyers who would otherwise purchase in the New York area, where property taxes are generally higher. Additionally, New York charges buyers both a 1 percent mansion tax on properties over $1 million and a 1.5 percent mortgage tax, which Connecticut currently does not have.
5. With a growing economy and healthy job market, many experts believe the Federal Reserve will continue to raise interest rates. As rates rise, a buyer’s purchasing power decreases.
6. In some situations (and when compared to New York), the price-to-rent ratio in Connecticut, a measure of the relative affordability of renting versus buying in a given housing market, is fairly low, which is more favorable to buyers. Online rent versus buy calculators, found on sites such as Trulia and www.smartasset.com, can be a valuable tool for potential buyers.
Most importantly, lower Fairfield County is a great place to call home. Nestled along the shores of Long Island Sound, there are incredible vistas, fabulous outdoor and water related activities and top-notch schools.