HARTFORD, Conn — The COVID-19 pandemic having a huge impact on the real estate market in Connecticut. We’re seeing a trend of people moving out of New York City and into Connecticut. Experts say it has quickly turned parts of Connecticut from a buyer’s to a seller’s market.
“I’ve been in the business for 30 years, and I’ve seen a market I’ve never seen before from a demand standpoint. The buyer and rental activity coming out of New York City is unprecedented,” said Paul Breunich, President and CEO of William Pitt Sotheby’s International Realty.
Paul Breunich says William Pitt Sotheby’s 27 offices in Westchester, Connecticut and the Berkshires have seen New York buyers make up 46% of business in Westchester, 33% of business in Fairfield County, 31% of business in Litchfield County, 9% of business on CT shoreline, and 35% of business in Berkshire County.
Breunich says there’s a shift in the market we haven’t seen in twelve to 15 years with people leaving the cities for the suburbs. He attributes that to the pandemic and people’s basic need for shelter.
“Working at home now is acceptable and also people are concerned in New York City that they’re not going to be able to send their kids to school for the fall semester. That’s playing into it, and they want to get settled and situated in another area and get in the school system and get their kids acclimated,” said Breunich.
Our Take
As we have spoken about in recent weeks, the real estate market has skyrocketed as NY residents flock to many of our Connecticut suburbs. What this means for buyers? Increased housing prices. What this means for builders? Overwhelming demand for property and real estate. Many of these builders are getting bids that are at listing price or above and with an added incentive to expedite the process.
There will most likely be an adjustment period as the market handles the increased demand with limited supply. No telling what this will also do for the state economy, as state migration out of state had peaked in recent years as many millennials and retirees fled to warmer or more business-friendly locations. We are keeping an eye on the situation and adapting to the current climate. It is no easy feat, but we are happy to learn more about this new market and this new buying and selling environment.
-The Altered Properties Team