We have seen steady improvement in all of our markets every quarter since Q3 of 2012, and now we are pleased to announce that the most recent quarter is the best we have experienced in five years. Clearly, the housing recovery has taken root, and if the current trend continues with housing strengthening in measurable increments, we believe we will remain in the midst of a sustainable, modulated recovery. Indeed, all of the critical indicators that define an improving market are in place, including month over month and year over year sales gains, lower inventory levels, fewer days on market and higher median selling prices, in addition to pent-up buyer demand. For a full analysis of how our residential real estate markets performed, please click here to learn about Connecticut and the Berkshires, and here to learn more about Westchester County, New York.
Numerous converging factors are playing a role in the recovery, including a clearer political picture, an improving economy, a reduction in prices by 20-30% compared to the heights of 2005, and rock bottom interest rates, which are expected to slowly rise during the next year. Buyers understand that conditions are optimal for purchasing, and sellers are motivated. We are seeing meaningful sales activity in all price categories and a broader base of buyers entering the market, especially local buyers, whose influence cannot be understated. Sellers, who are benefiting from an increase in multiple bid situations, can often engage buyers provided they present their homes in turnkey condition. In Connecticut, Fairfield County is experiencing the greatest sales increases, while the Shoreline, Litchfield Hills and the nearby Southern Berkshires are also seeing plenty of momentum. Meanwhile, Southern Westchester County is enjoying that region’s most significant sales trajectory even as Northern Westchester County has its own notable growth.
While we do caution that the market is still recovering versus recovered, all indicators are currently pointing to improved buying and selling conditions. We invite you to have a look at the results of the first half of 2013, which we believe speak for themselves. We hope that you find our latest market reports informative as you evaluate your own real estate needs for 2013, and as always, we invite you to contact us if we can be of assistance.