Thinking about buying or selling a luxury Fairfield home in 2022? You are not alone. After the competitive buying that occurred throughout 2021, many of the same trends are continuing through this year. Luxury home purchases throughout Fairfield are happening in higher numbers than ever before. As a result, sellers are receiving exceptional deals on their properties.

If you are planning on buying or selling this year, there are important things that you need to know. Check out what you can expect from Fairfield luxury real estate in 2022.

Attributed largely to inflation and high home prices, mortgage rates hit new highs in the spring of 2022. Rates as high as 5.28% are routinely being offered to those seeking a mortgage. While this may not seem like a significant change, it definitely is. This is especially true of luxury properties around Fairfield, which commonly fetch well over $1 million.

Even if you plan on utilizing a short-term mortgage, your monthly mortgage rates are likely to be much higher than they would have been one year ago. If possible, the best strategy (especially for investment properties) is to buy as much in cash as you can. Reducing your dependence on financing for your luxury home will put thousands of dollars back into your budget. Additionally, if you cannot avoid financing, do everything possible to keep your credit score near perfect to earn the best available rates.

While the home buying market is still ultra-competitive, the more extreme aspects are expected to calm down within the next six months to one year. Although these are best guesses by expert analysts, and anything can change these projections, we will likely see less overall competition when it comes to offer-making. This shift will certainly be positive for buyers, and shouldn’t hurt sellers too much.

How is this possible? Since changes will likely be gradual, the market will slowly become less competitive. Rather than an overnight shift, the market should cool down at a reasonable pace. This will lead to a gradual increase in available homes, as well as a gradual decrease in extreme buyer offers (such as all-cash buys and forfeiture of property inspections). Balancing out the market will ultimately be beneficial for both sides of the equation — in Fairfield and beyond.

Demand for new homes is extremely high in 2022. As a result, builders are working overtime to keep up with this demand. This is even the case in the luxury real estate market, where customization is king. Buying a new home means that you can personalize your new property like an A-list celebrity.

In Fairfield, there are quite a few new luxury developments that are becoming available to prospective buyers. Within these housing developments, there is a wide range of unique architectural styles used. Never settle for cookie-cutter style homes when buying new. Spacious and sprawling farmhouse, traditional, Tudor, and modern homes are becoming available throughout the area. One of the biggest trends in new construction is three-level properties. Select luxury properties are even being built with a fourth, rooftop level that provides breathtaking views of the surrounding landscape.

Over the last year, home prices across the nation have skyrocketed to unprecedented rates. While this growth has led to some excellent gains for sellers, this aspect of the market has not been as friendly to buyers. This is especially true for those who have bid on a property, only to be outbid by someone offering more than the asking price.

Thankfully, this is one trend that is expected to peak sometime this year. Although the exact timing of the slow down is not yet known, luxury properties are supposed to continue gaining some value, but at a far slower rate than they did over the last year. Individuals who are looking to sell at the highest price possible should be especially mindful of this trend shift. Waiting until 2023 may lead to earning less for your property. Therefore, be sure to consult with a real estate professional to assess the timing of your Fairfield listing.

When it comes to making offers, cash buyers are ruling the market. Earning the capital from various real estate investments and other sources, individuals who can make cash offers are winning bids at far higher rates than individuals requiring a mortgage. Although this is challenging to do when purchasing million dollar properties, it is advisable if at all possible. Cash buyers are even winning bids when others have made higher offers with more terms attached.

Whether you are a buyer or a seller, one thing to be aware of is delays in repairs and upgrade projects. Due to continued supply shortages that are affecting multiple industries, standard jobs are taking longer than expected.

Be particularly mindful of this when planning out your moving timelines. Having the correct expectations when it comes to the time it will take to close on a property, or move into a new home, will reduce stress and frustration. This is especially true with luxury properties, where construction projects are often more involved than they are with standard-sized homes.

Navigating the nuances of the Fairfield luxury real estate market requires an experienced realtor. To get the best deal as both a buyer and a seller, you should hire a team that has your interests at the core of everything they do. Unparalleled client services have never been more important than they are in today’s housing market. Rather than guessing through the entire buying or selling process, trust a reliable area realtor who knows the inside scoop.

If you are exploring Easton luxury homes or Westport real estate, our experts are ready to assist you. Contact Shoshana Snyder and her team today at (203) 321-3502 to begin your journey.