[tsek]

In the past few weeks, there has been a rally in the 10Y treasury, and you can get a 30 year conventional mortgage for 5.5% and a jumbo for 5% or even less. I think these rates will restore/sustain the sellers' market given that there is almost nothing attractive on the market. You don't have crazy open houses, but you do have competition for good properties despite the eye-watering prices. No significant relief for first-time buyers as of yet.

[JayCT]

Originally Posted by Alex29

I don't understand what hype you are talking about. I only live in CT for 5 years, maybe I missed something.
And for the same period of time (2010-2020) US population increased by more than 7%. I would not call 0.9% modest then. Also, strange to hear about needs or wants of state. Last time I checked US are still pretty free country with no real ways for states to control population growth.

Prior to the 2020 Census, there were headlines that Connecticut lost population. They were wrong. The 2020 Census found we gained just under 1% in population rather than losing population. I’d still call that modest in comparison to many states, if not most.

Connecticut towns have very strong zoning laws. They discourage overdevelopment. There is not a lot of open land left for development. They were mostly developed back in the 80’s. The state and many towns have highly active programs to buy any open property that becomes available. There’s also programs that buy development rights for farms. This is why you don’t see a lot of new development across the state. Jay

[SteveM85]

Originally Posted by tsek

In the past few weeks, there has been a rally in the 10Y treasury, and you can get a 30 year conventional mortgage for 5.5% and a jumbo for 5% or even less. I think these rates will restore/sustain the sellers' market given that there is almost nothing attractive on the market. You don't have crazy open houses, but you do have competition for good properties despite the eye-watering prices. No significant relief for first-time buyers as of yet.

Hang in there, be patient, it'll be worth the wait, CT always is. Some previously blistering hot markets are staritng to see inventory gains and price declines now. Whether that comes to CT remains to be seen.

[CT_Yank]

Originally Posted by SteveM85

Yeah but before pandemic you were predicting bloodshed and massive declines.

Let's go back to page one Jan 2020. Hundreds of pages and thousands of posts ago. Might as well make this a sticky.

I don't think I was calling for massive declines prior to pandemic. CT was suffering in Q4 2019 with Wells Fargo calling Fairfield County 'distressed' and requiring 25 pt risk premium on mortgages. That is a fact. CT homes were down compared to inflation 2015-2019. My point was that local wages will keep a cap on RE market. Again, vast majority of homeowners live and work in CT, not NYC. It is a lie. The Fed still has 9T on balance sheet. The trillions in stimulus has kept the stock market and job market in a frenzy. Unemployment can't go any lower. This is artificial juicing that creates misallocations in real estate. It may take a few years because of Fed money-printing but if you paid 50-90% more than 2020 price then reality check is coming.

[tsek]

Originally Posted by CT_Yank

I don't think I was calling for massive declines prior to pandemic. CT was suffering in Q4 2019 with Wells Fargo calling Fairfield County 'distressed' and requiring 25 pt risk premium on mortgages. That is a fact. CT homes were down compared to inflation 2015-2019. My point was that local wages will keep a cap on RE market. Again, vast majority of homeowners live and work in CT, not NYC. It is a lie. The Fed still has 9T on balance sheet. The trillions in stimulus has kept the stock market and job market in a frenzy. Unemployment can't go any lower. This is artificial juicing that creates misallocations in real estate. It may take a few years because of Fed money-printing but if you paid 50-90% more than 2020 price then reality check is coming.

I broadly agree with you - fundamentals will take root - but we're heading quickly into a Presidential election cycle and I'm not sure if Biden/this administration are going to tolerate the Fed sending us into mean-reversion in the coming months. There could be a long delay here.

SteveM85: Thanks, I appreciate that.

[CT_Yank]

Originally Posted by tsek

I broadly agree with you - fundamentals will take root - but we're heading quickly into a Presidential election cycle and I'm not sure if Biden/this administration are going to tolerate the Fed sending us into mean-reversion in the coming months. There could be a long delay here.

SteveM85: Thanks, I appreciate that.

We are always in election cycle. That is something I have come to realize. No administration wants any pain. Same story with Q4 2018 market convulsion and Trump's "Powell is bigger enemy than China" rant. All over a several small hikes.

[riffwraith]

https://www.zillow.com/homedetails/6...77230388_zpid/

Nice house? Check.

Nice area? Check.

Built relatively recently? Check.

No property to brag about? Check.

I see a pool, and some other good stuff, plus again, the house is nice. But at $825/sqft, with not even 1/4 acre?

Looking at other houses in FF (a few, not nearly all), similar sqft, I am seeing low to mid 3s for price/sqft. The house above seems out of line. Or am I missing something?

[Stepfordct]

Just need 1 buyer

[SteveM85]

Ehhh, it’s beach area. Everyone knows waterfront areas are offered and bought at premium pricing.
People foam at the mouth for Fairfield beach area housing.

[riffwraith]

Ah, waterfront... of course.