Real Estate Hotline                                   January 2025

by Greg Frey                                               RE/MAX Prime Realty

CURRENT REAL ESTATE MARKET

Residential real estate values in the Hartford area continued to rise in 2024.  The total average value per square foot of all single-family homes sold from January 1, 2024, to December 31, 2024, in Avon, Canton, Simsbury, Farmington, and Granby was $251 - up 8.7% from the prior year.  The total number of sales continued to decline but at a slower pace than the prior two years.  In the same towns the total number of single-family homes sold was 821 - down 2.97% from the prior year.  Looking back a few more years at home values shows the average single family home value in the same towns is up 48.9% from it’s value on January 1 of 2020.  As an example the average home worth $400,000 in January of 2020 could be worth around $600,000 today. 

The lower than normal number of sales probably will continue for some time.  Many current homeowners are still reluctant to move since many now have mortgages on their existing homes with rates that are far below the current mortgage rates.   The low inventory of homes for sale continues to fuel bidding wars and many homes are selling over asking price.  As of today, February 9, 2025, there are only 51 homes (37 single family homes and 14 condominiums) available for sale to purchase combined for the towns of Avon, Canton, Simsbury, Farmington, and Granby – around 20% of the number available in a normal market.  The average sale price of all homes sales in 2024 in the same towns was 106% of asking price. 

I still expect that real estate values will continue to rise. There are far more buyers available than there are properties available.  While mortgage rates around 6.875% are high compared to a few years ago, they are historically a little below average.  There is no sign that buyer demand or mortgage rates will be coming down anytime soon.  It still is a very good time to be a seller and a hard time to be a buyer.  Inventory should increase slowly as buyers accept the current interest rates as the new normal. 

Advice to sellers today remains the same.  Sell if and when you need or want to sell.  There’s no need to wait for spring or to list before school starts - buyers are aplenty.  As an example my most recent listing in Avon, a 2000 square foot ranch, went on the market at $500,000 on Friday, January 24, received 40 showings in four days and was under contract over asking on Tuesday, January 28.  Advice to buyers today would be - why wait, buy now!

THE CURRENT MORTGAGE MARKET

On Feb. 9, 2025, thirty-year, FIXED-RATE mortgages for up to $806,500 are available currently as low as 6.875% with 0 points. Many home loan options are readily available to buyers today.  First time buyers can obtain favorable loan terms.