White Hot Housing Market Finally Hits A Lull

By Steve Bigham

Local real estate agents say the housing market has hit a lull in the action after coming off one of the busiest six-month periods in recent history

The cooling of the market has been especially noticeable over the past couple of weeks and experts say it is a function of several different things. The market tends to slow up this time of year anyway, but many believe the uncertainty of the economy may also be playing a role.

“Interest rates are up and the stock market is unstable so people have been more cautious,” noted Newtown Board of Realtors President Jill Wolowitz. “Also, because the market has been so frantic, people have been racing into decisions and then backing off. They have been forced to rush because houses were selling the day they went on the market.”

According to John Klopfenstein of Curtiss & Crandon, the days of homes receiving multiple offers the same day they go on the market are over… at least for now.

“Earlier this spring the market was hysterical. Now the market is more normal. We had people who panicked if their home didn’t sell in the first week,” he said this week.

Mr Klopfenstein attributes the lull more to the typical slow summer season than to the economy. Nevertheless, sales are down and the inventory of homes for sale in Newtown has gone up. This week, 170 homes are currently listed in town, way up from April and May when only about 140 homes were on the market.

The low inventory of homes last month may have played a role in the fact that only 41 homes were sold. In March alone, 65 homes were sold and another 63 were sold in April.

“Typically the market peaks in May. It may have been down this year because a lot of sales didn’t happen due to the low inventory,” Mr Klopfenstein said.

In May of 1999, there were 219 homes on the market. This year, May’s total was 141.

But while the number of homes on the market has gone back up this month, agents say it continues to be a sellers’ market.

“Prices have been pumped up so much and there is still a shortage,” Mr Klopfenstein said. “There isn’t a realtor in town who doesn’t have a couple of buyers who they could sell a home to tomorrow if they had the right home for sale.”

In Newtown, there is a shortage of homes in the $400,000 to $450,000 range. There are also more buyers than sellers in the $250,000 to $300,000 range.

However, you should have no problem finding a home in the $300,000 to $400,000 or $450,000 to $600,000 ranges. Those in the market for homes in the $700,000 and up range can currently find 13 homes up for sale.

Said Mr Klopfenstein, “This is not a sleepy little town any more.”