The affordability squeeze is real

Affordability is what everybody is talking about. Especially in real estate, and especially in Connecticut. We’re seeing it make a real impact right now.

A young couple we’re working with got pre-approved. But when they found a house they loved and wanted to write an offer, the property taxes were so high their lender had to lower their pre-approved amount to account for them. That took them out of contention and put them in a price point that simply doesn’t exist in most parts of the state.

Another buyer ran the true monthly numbers on a condo in the low $300s: high property taxes, plus a $300–$400 HOA. A good month would be close to break-even, with nothing left for repairs. They smartly walked away from that deal.

Even at higher price points, a downsizer we’re working with has written strong over-asking offers on modest 3-bed homes and is getting outbid by nearly $100,000. When the right home almost never comes up, everyone goes all-in the day it does. There’s an extreme premium on homes under $500,000.

The numbers match what we’re feeling. CT homes sold just under 4% over list price on average this July, and fewer new homes came on the market than a year ago. Here’s the part that stings: by the standard measure of whether a typical local family can afford a typical local home, we’ve slipped under the line — meaning the average household now earns a bit less than what it takes to comfortably buy the average house here. Less supply, higher prices, tighter budgets, all pulling the same direction.

If your budget is tight

Run the real monthly payment — with taxes in it — before you fall for a listing. That number is where CT dreams meet CT reality.

Buying? Get a lender who knows CT programs cold, run the true monthly expenses, and be ready the day the right home lists.

Selling? A well-kept, well-priced home is pulling real competition, as long as it’s listed right.