January 2010 Hartford County CT Real Estate Market Report

February 9th, 2010 categories: Real Estate Listings, Real Estate Market

The beauty of today’s real estate market is in the eye of the beholder.

Buyers will like that prices have dropped. Inventory is up. Homes are taking longer to sell. Buyers have many more choices.

Sellers will not like that prices have dropped. Inventory is up. Homes are taking longer to sell. Buyers have many more choices.

The median sales price in January 2010 dropped from $219,750 in 2009 to $207,000. More homes are selling but they’re typically selling for less.

Going forward, there are nearly 3,000 homes actively on the market - and only 301 closed in January. There are almost 1,000 pending sales but a good percentage of those will not close. There is nine months of inventory on the market - a strong buyer’s market.

There’s always a backlog of homes on the market at this time of year so we will work through some of this inventory come Spring.

My overall feeling is that prices will continue to fall. Slowly but surely. I don’t know how much more but I don’t think we’ve reached the bottom.

Does that mean I would wait to buy? Not exactly. Prices are better than they’ve been in years and interest rates are low. If you’re living in Mom’s basement rent-free and putting away money every month for a down payment, then waiting may make sense for you.

But if you’re renting, have decent credit, can qualify for the tax credit, and can stay in your home for a few years, buying may actually be worth it - even if you home declines in value in the next year.

It also makes sense if you are handy. There are so many homes available now that need work - more than I’ve seen in the five years I’ve been in business. If you can make upgrades - like fixing up bathrooms, kitchens, and easily adding square footage (such as finishing off the attic in this cape below) - you will insulate yourself against price declines.