The residential real estate market for the Greater Woodstock market area tightened further in 2018 – holistically the best year-to-date in a decade. While sales were down 7% in 2018 compared to 2017, they were up 13% compared to any other year aside from 2017 and continued to follow a general rising trend. However, the defining theme of 2018 was not found in the number of homes sold, but rather the markets continuous decline in inventory since 2011. The number of homes actively listed at the end of 2018 were down 40% compared to 2017 - from 230 to 164, respectively. On December 31 there were just 9 months’ worth of inventory on the market, down from 11 months at the end of 2017, and 17 months at the conclusion of 2016. As the supply-demand balance in the market reaches a better equilibrium, the market for moderately priced homes in the Woodstock Village and possibly elsewhere have become tight, where prices appear to be rising.
As the supply of homes continues to decline market wide, surrounding towns such as Reading, West Windsor and Pomfret appear to be receiving a boost in terms of number of sales. For example, the town of Reading saw 21 sales during 2018, nearly twice the number than any other year on record. The average negotiating discount – the % difference between a home’s list price and sale price – was 6.33% in 2018 and is nearly at its lowest point on record, demonstrating that buyers are paying closer to the asking price of houses than they have in prior years.
The luxury market in the Greater Woodstock market area was solid in 2018, with 14 sales of homes over $1 million, one of which sold for $5.3 million – the highest price a house has sold for since 2009. We continue to observe a premium being paid for new, recently renovated, and well-staged houses in this price range.
Buying activity for the Greater Hanover-Lebanon market area continued to be strong in 2018, essentially matching the pace of 2017. The market saw 350 sales of single-family homes in 2018, compared with 342 in 2017. The homes that sold in 2018 were on the market for an average of just 2.5 months before they were purchased, the shortest amount of time since 2012, where properties sat for an average of 4.5 months before selling. Developments in several individual towns are noteworthy. Lebanon closed just shy of $38 million worth of single-family homes in 2018 – up 11% from any other year on record. The town of Norwich saw inventory continue to decline last year, with just 11 houses actively listed for sale at the end of the year, versus 23 at the end of 2015.
Another sign of continued strength in the Greater Hanover-Lebanon market area was the average negotiating discount, which has been steadily decreasing from 5.85% in 2010 to a near record low of just 3.56% in 2018.
The Greater Hanover-Lebanon market area had an exceptional year in regard to luxury properties. There were 17 homes that sold for $1 million or more, up just slightly from 2017, which saw 15. The town of Norwich stood out with 6 sales of homes for $1 million or more, an all-time record for the town.
Charts illustrating the above information can be found below.
Click on any of the following towns to view market analysis for the full year of 2018 and historical statistics.
Greater Woodstock Market Area
Greater Hanover Lebanon Market Area