CT 2021 Residential Sales up 4.1% with 38% Drop in Inventory
Buyer demand for homes reached extraordinary levels in 2021;
Closed sales up 4.1% in NHMR SErvice area, 2.8% statewide with a 38% drop in inventory
The annual report for the New Haven Middlesex Association of REALTORS® (NHMR) service area for 2021 shows that the number of sales and median sales prices increased in 2021, while the number of new listings decreased, with a dramatic 40% decrease in inventory from 2020 to 2021.
According to reports generated from SmartMLS multiple listing service, fervent buyer demand, driven by pandemic-induced changes to housing needs and preferences, reached extraordinary levels in 2021. The inventory of homes for sale remained low, as home seller activity did not rise proportionally to meet this demand. New construction activity, while strong, remains limited by a combination of material and labor shortages, rising material costs, and a regulatory and operational environment that makes it difficult to scale quickly.
Pending residential sales for the NHMR area were up 3.4 percent to 9,843 in 2021. Closed sales were up 4.1 percent to finish the year at 9,735. Statewide, pending sales were up 1.2 percent to 53,665 in 2021 and closed sales were up 2.8 percent to finish the year at 53,322.
The strong seller’s market of 2020 continued and even strengthened in 2021, with inventory levels remaining low and multiple offer situations common across much of the housing market both locally and nationally. Multiple offers again drove prices significantly higher for the year. The overall median sales price for the NHMR service area increased 12.7 percent to $310,000 for the year. Single family home prices were up 12.0 percent compared to last year, and Townhouse/Condo home prices were up 13.0 percent.
Statewide, the overall median sales price increased 10.5 percent to $315,000 for the year. Single Family home prices were up 12.6 percent compared to last year, and Townhouse/Condo home prices were up 10.7 percent.
Year-over-year, the number of homes available for sale was down 40.6 percent in the NHMR service area. There were 1,158 active listings at the end of 2021 compared to 1,949 listings at the end of 2020. New listings decreased by 3.8 percent to finish the year at 10,759.
Across the state, the number of homes available for sale in Connecticut was down 38.3 percent. There were 6,490 active listings at the end of 2021 compared to 10,523 listings at the end of 2020. New listings increased by 5.0 percent to finish the year at 59,664.
Throughout the area and the state, inventory shortages and high buyer demand continued to push home prices higher, with multiple offers on a limited number of homes the common theme in most market segments. This year looks to continue the trends seen in the last 18 months, pushing home prices higher still. As mortgage rates are likely to continue to rise over the year as well, housing affordability will remain an important factor to watch.
Data was provided from reports generated from SmartMLS multiple listing service:
The New Haven Middlesex Association of REALTORS® Association service area covers the following towns:
Bethany, Branford, Cheshire, Clinton, Cromwell, Deep River, Durham, East Haddam, East Hampton, East Haven, Essex, Guilford, Haddam, Hamden, Killingworth, Lyme, Madison, Meriden, Middlefield, Middletown, Milford, New Haven, North Branford, Northford, North Haven, Old Lyme, Old Saybrook, Orange, Portland, Southington, Wallingford, Westbrook, West Haven and Woodbridge.