Dear Clients and Friends,
As we enter the second quarter of 2025, it is very easy to get lost in economic reports and news - my goal is to simplify some of the real estate data and bring you the trends we are seeing in the field. So here they are:
1. Buyers Are Learning to Live with Higher Interest Rates
For the past couple of years, buyers have been holding out for interest rates to drop. But now, many are coming to terms with the reality that mortgage rates around 6-6.5% might just be here to stay for a while. Instead of waiting indefinitely, they’re choosing to move forward with their home purchases, knowing they’ll likely have refinancing opportunities down the road.
2. Move-in Ready Homes Are King, Renovations Are Losing Appeal, and Staging Is Evolving
The love for fixer-uppers is fading fast. Why? Renovation costs are through the roof. Between rising tariffs, ongoing supply chain issues, and skyrocketing labor costs, remodeling has become both expensive and unpredictable. On top of that, contractors are harder to book, with many heading to regions where rebuilding is in high demand. It’s no wonder buyers are opting for move-in-ready homes to avoid the headache and uncertainty that come with renovations.
On another note, buyers have become much more visual. They’re dreaming about homes that look like their favorite Instagram feeds or HGTV shows, and they’re willing to pay a premium for spaces that align with those dreams. Staging has shifted to meet these expectations. Bland, neutral setups that just highlight square footage aren’t cutting it anymore. Stagers are now creating beautifully styled, aspirational spaces that feel fresh, modern, and lifestyle-driven. It's working too—buyers can immediately tell the difference between a thoughtfully styled home and a generically staged one.
3. Second Home Market: Stable Prices, Longer Sales Cycles
In second-home markets like Connecticut, rising construction and material costs have kept home prices steady post-pandemic. Building a new home is now significantly more expensive, making existing properties more valuable. However, these homes are taking longer to sell as buyers have become more selective, favoring turnkey properties with modern finishes over those requiring updates.
These trends are shaping the real estate market, influencing buying and selling strategies.
Best Regards,
Daniel
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