by Dorothy E. Curran, Weichert Madison and Post
Since March, coastal Fairfield County, CT has enjoyed an unexpected surge in home sales and leasing, but that was just the first wave. And migrating New Yorkers seeking social distance during the pandemic were only part of the story. Whether you’re selling or buying, or both, now is the time to prep for Spring, 2021’s second wave, starting in January.
Q: Was the “first wave” all due to the pandemic?
A: No. Many young families/First-Time Buyers (Millennials) arriving from NYC planned eventually to move to CT. They finally had paid down enough tuition debt, chosen partners, started families and recognized the advantages of paying mortgages instead of private school tuitions. The pandemic just accelerated their timing. Separately, CT Up-Traders (Gen X) and Downsizers (Baby Boomers, Greatest Generation) already planned to sell and buy in the Spring Market. Ironically, though the market was hot and mortgage rates remained at historic lows, some of these Up-Traders and Downsizers sat out the Spring Market, due to Covid-19 safety concerns. The result was a smaller inventory of homes available, and upward price pressure. In other words, were more homes listed, the market would have been even busier.
Q: What’s driving the “second wave” in Spring, 2021?
A: During the first wave, many coming from New York on short notice still had leases there to honor. Here, they specifically sought one-year leases, ending in Spring, 2021, because that’s all they could afford until their NY leases ended. Some also wanted to be sure that their new CT town was “right” before buying. Others were ready to buy, but encountered low inventory, lost bidding wars or otherwise could not find what they wanted. Meanwhile, mortgage rates remain at historic lows and Fairfield County property taxes and utility costs are lower than in Westchester, Long Island or northern New Jersey. 2020’s migrant Renters will be ready, willing and–with both their NY and CT leases ending–financially able to buy in Spring, 2021. Another bonus: for years, pundits defined Millennials by their preference for urban “social density.” Now, those maturing Millennials are coming to CT seeking social distancing, sometimes in inland towns, miles from the nearest Starbucks. Many also are less sensitive to Metro North proximity since they now can tele-commute from home. Having a home office is a bigger priority.
Q: What’s limiting the second wave?
A: Pandemic caution among Up-Traders and Downsizers who consider themselves high-risk could again limit listing inventory. Happily, Connecticut’s residential Realtors–named as “essential workers” by the Governor–have stepped up during this pandemic and deserve a lot of credit for the successful “first wave.” We quickly adopted public health best practices and contact-free technologies (Zoom meetings with clients, virtual tours, electronic signature, etc.) for marketing, sales and deal transactions. NY and CT’s popular adherence to public safety guidelines has helped greatly.
Q: Next Spring’s second wave sounds like a great opportunity for sellers and buyers! How do I take advantage, while staying safe?
A: Step one for Sellers (Up-Traders and Downsizers) is to contact an experienced Realtor for a market valuation and a readiness evaluation of your property. A well-prepared property (de-cluttered, painted, staged) will sell faster and for more money than “as is.” See what “ready” comps are selling for. Learn the upside price potential of investing in “readiness.” Then, agree on a timetable for readiness prep and listing. And remember–in residential real estate–Spring begins in January! For Buyers, especially those First-Time Buyers with leases expiring in March, April or May, remember that the time between offer acceptance and closing may be 30 to 60 days, so shopping needs to begin by January. Now is the time to partner with an experienced Realtor, meet with a Mortgage Broker to verify your purchase price range and become pre-qualified, clean up any credit issues, learn about mortgage types, down payment requirements, PMI and closing costs.
By all means, as you plan your next move, please call, text or email me to discuss your needs. If you follow these guidelines for Fall prep, then–come Spring, 2021, during this real estate market’s second wave, when coastal Fairfield County’s ready Sellers meet ready Buyers–the rising tide will lift ALL boats, including yours!