The charming small town of New Milford supports a primarily residential community that loves country living. As winter transitions into spring, the local real estate market may experience lower levels of buyer demand than in previous years. Although the price of New Milford homes averages less than homes across the state, high mortgage rates negatively impact the affordability of homeownership. To understand the forecasted trends of New Milford real estate this spring, here’s what to know about current conditions.
Reviewing the statistics
For a quick understanding of local market trends, review the information below. The data is sourced from Lisa Bowman at Bowman Properties and the Greater Hartford Association of REALTORS.
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Lisa Bowman currently has about 143 properties for sale in New Milford
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46 homes are listed between $500,000 and $1 million
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As of February 2023, there were 19% fewer pending sales and 20% fewer closed sales year-over-year
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In the same period, Litchfield County had a 10% higher median sales price and 29% lower inventory
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Average days on the market remained unchanged at 36 days
New Milford housing market
Currently, New Milford is experiencing cooling trends. A decrease in home sales is partly due to seasonal trends, as most buyers stop their searches in winter when frigid weather and holiday celebrations make searching for and viewing a home difficult. High mortgage rates are another cause of decreasing home sales. Buyers searching in the area have decreased buying power due to added expenses of high rates.
The median sales price for single-family homes has declined as well. Seasonal trends are also at play here, as homes sell for less in winter. This decline is partly caused by less buyer demand, which results in a slower market. As properties spend more days on the market, inventory increases, resulting in more competition among sellers, ultimately causing price reductions.
New Milford market forecast
Although there are a few obstacles to look out for, the market across Connecticut and New Milford figures to remain stable entering spring. Although the number of completed transactions has recently declined, the percentage of homes sold and under contract remains substantial, indicating the presence of buyer demand. Buyers are still willing to search for properties — a good sign for the spring market.
Rising inventory is crucial to providing buyers with the variety they need. This is especially critical for first-time buyers who lack home equity to lean on and have to manage rising rental costs. Although New Milford doesn’t have a balanced inventory, it is growing in the right direction, preparing the spring market for more buyers.
New Milford’s economy also supports its local market. The town supports small businesses with resources like the ARPA Small Business Assistance Program. Employment has an annual growth rate of 2.02%. The population has grown 4.39% over the year, while median household income has also increased. Even so, poverty rates are rising, creating obstacles to homeownership.
New Milford for buyers
Buyers interested in living in New Milford can expect a mixed bag entering the spring market. A significant advantage is the town’s increasing inventory. This gives buyers more options and a chance to compete against other buyers. Higher inventory levels and decreasing median prices also give buyers more negotiation power with sellers.
Another buyer perk is the manageable cost of living in New Milford. Living costs are lower than the state average and on par with the national average. This makes costs related to homeownership more manageable for New Milford buyers. However, buyers should be aware of mortgage rates. High mortgage rates are expected to persist throughout the year. In Connecticut, the average rate for a 30-year fixed loan is 6.37%, while a 15-year fixed loan has an average rate of 5.5%.
New Milford for sellers
Those wanting to sell a home in New Milford should prepare for the spring market. For one, persisting buyer demand and lower inventory levels should maintain or raise real estate prices. Population and employment growth bolster buyer demand in the area, which may create more competition.
However, negatively impacted buyer power may cause listings to stay on the market longer as buyers struggle to finance homes. Listings that linger can become undesirable to buyers, which may require sellers to reduce their list price. Buyers will also have more negotiation power as inventory increases.
New Milford for investors
Investors interested in New Milford’s rental market can count on several perks when choosing a property. For one, renters make up 44% of occupied properties in the area, which is higher than national rates. High mortgage rates have also priced some buyers out of the local market, leaving them no choice but to rent. Investors who can find a property to invest in have the potential to make a good profit.
For the most success in finding a suitable rental property in New Milford, investors should work with local professionals like Lisa Bowman. She can help you find the neighborhoods with the best rental rates, demand, and appreciation.
Ready to invest in New Milford?
Like the rest of Connecticut, New Milford is experiencing cooling trends caused by seasonality and the pressures of high mortgage rates. Persisting buyer demand, a strong economy, and the potential profits of investment all favor sellers listing their properties in the spring.
Navigating and interpreting fluctuating market trends is much easier with professional help. When you’re ready to buy or sell in this town, trust experienced agent Lisa Bowman to guide you. Lisa and her team at Bowman Properties regularly close great deals for houses in and around New Milford. Reach Lisa anytime and find out how she can make a difference in your home purchase or sale.
*Header photo courtesy of Shutterstock
