It has been HOT out there... both the outside temperature AND the local real estate market. But have we hit a tipping point? Has the bubble popped? Let's take a look at the data and see if the outside temperature is hotter than the market...
Below is a graph showing the number of new listings and the number of properties that went under contract from 5/31 to 8/8 in the Hartford County area. This data is showing a clear peak towards the end of June and another slightly smaller peak towards the 3rd week in July. From there we can see the natural decline of the "spring market" as we enter into Q3. Based on my experience, the dip from 7/5 to 7/18 suggests that buyers chose to go on vacation during that time period, hence the slight dip.
I have also been following the daily activity and watching how quickly new listings have been going under contract. This is important for me to watch so I can educate my buyers how to win when there are multiple offers in a fast moving market. What I have seen over the last month is a slow down of many of the new listings coming on. Still, some homes have sold quickly, but the overall speed of the market is slowing. To see which Farmington Valley towns were moving fast, check out my blog here.
While we can see a clear slow down in the market activity, it is still moving at a healthy pace. The state wide numbers show an average "days on market" of 38 and we have a 4.2 months supply of inventory. For more stats, check out the market report here. So while I wouldn't call the market "hot" right now, it's still very warm and I'm seeing signs of a cool down ahead.
