Vitality, strength and demand: These were the buzz words for the real estate market performance in the third quarter of 2012. We are very pleased to share with you our analysis of how our markets have been doing, both in the third quarter and year to date, as well as where we anticipate we are heading for the rest of the year. Please click here for our Connecticut Market Watch, covering Fairfield County and Litchfield County, Connecticut.
One consistent trend across all of our markets was a measurable increase in buyer demand, as buyers who have been waiting for the right moment to enter the market are now faced with both record low interest rates and great values in terms of current price levels. While many homes at the very high end have held out on making adjustments, prices in other sectors have mostly stabilized a key aspect to recovery in the housing market.
This buyer demand translated into meaningful single-family home sale increases in both unit sales and dollar volume during the third quarter, compared to the same time period in 2011. You will see from the reports that these gains were seen in all of our markets, from Westchester County to Fairfield County and along the Connecticut Shoreline, and perhaps most significantly in Litchfield Hills, where until volume rose 35% and dollar sales 34%. Rental markets in these areas are showing plenty of strength as well, as evidenced by the higher prices and lower inventory levels we’re seeing.
Although the recovery is ongoing and lending restrictions do their part to keep the growth in check, our conclusion is that our markets are seeing steady improvement, and the worst days of the real estate crisis are behind us. We invite you to have a look at our reports to confirm these findings for yourself. If our third quarter results are any indication, the increases in home sales and the current level of buyer confidence should lead our markets to a strong finish for 2012.