Archive for the 'Real Estate Market' Category
RE/MAX Chairman Dave Linger Comments on Market in Personal Investor Magazine
September 3rd, 2010 categories: Investors/Landlords, Real Estate Market
Dave Liniger, Chairman & Co-founder of RE/MAX offered some comments on the real estate market for investors in the September/October edition of Personal Investor Magazine. Click here to read the full article
Of particular interest to me are his comments on the major demographic trends in real estate:
Liniger says that Millenials will be buying homes sooner than people in Gen X (my generation); however, with the first wave of Millenials in their early to late 20’s, we haven’t seen that yet. The logic used to be that the Millenials would be the beneficiary of their parents’ wealth (Baby Boomers) and would have Mom & Dad help finance their home purchase. But with the economy, pensions, employment prospects all on the decline, I think Millenials are just as happy to stay home with Mom & Dad for a while and Mom & Dad can’t afford to contribute.
Colleen Edwards interviewed generational researcher, Chuck Underwood, on her blog, The Real Story, and he also thinks is the case…for now.
However, this leads to another trend I’ve talked about for a few years: multi-generational housing. What type of houses do 2-3 generations of a family want to buy? It needs to be large enough to accommodate everyone. It needs to have separate living areas. Maybe it’s a multi-family home or a home with an in-law? Maybe it’s a large home with two levels and two kitchens?
Liniger calls this “cross generational,” and thinks it will have an impact on our housing market. I think, however, it’s not only a trend among recent immigrants. If your family history included a time where family members of a different generation lived together, even if it was 50 years ago, the idea isn’t that unusual.
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June 2010 Hartford County CT Real Estate Market Report
July 19th, 2010 categories: Real Estate Market
1999?
The lyrics to Prince’s “1999″ seem to best express the last month in the Central CT real estate market and what lies ahead.
“..when I woke up this mornin’, could’ve sworn it was judgement day. The sky was all purple, there were people runnin’ everywhere. Tryin’ to run from the destruction, you know I didn’t even care. Say, say two thousand zero zero, party over, oops out of time. So tonite I’m gonna party like it’s nineteen ninety-nine.”
June was a very busy month for closings - especially in comparison to June in the last two years. Median sales prices went up. Homes were even selling a little closer to asking price. Some of this is due to the tax credit, but the rest attribute to normal reasons people buy and sell real estate (job relocation, divorce, marriage, downsizing, upsizing, etc.). Plus, low interest rates are luring first time buyers who missed the credits into the market.
Will this continue? Look at the inventory - 3,658 single family homes are on the market. That is the highest I’ve seen it since I began tracking. And you have to assume a fair percentage of the pending sales will get re-listed.
Recovery from the spring market won’t be as quick as taking an Alka-Seltzer in the morning to cure a hangover. From people who service the real estate business - lenders, stagers, home inspectors, etc - I’ve heard they’ve all suffered a dramatic slowdown in the past weeks.
The market will slow over the summer but not come to a grinding halt. Pressure will continue to push prices down. Well priced homes in good condition will sell and sell quickly - the one fact we can always count on.
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Prices of Single Family Homes Up…Except in Hartford County
March 2nd, 2010 categories: Real Estate Market
Other than in Hartford County, real estate prices increased in January or stayed about the same when compared to January 2009. (Hartford Courant)
Fairfield County saw the largest increase of nearly 30%.
Click here for my report of January’s real estate market.
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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.
Details for this listing: 336 Oak Street, New Britain, CT - $129,999
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As the Market Turns…Here Come the Multiple Offers
August 25th, 2009 categories: Central Connecticut News & Information, Real Estate Market
With the first time home buyer credit set to expire, interest rates low and the feeling that maybe all this good stuff is about to come to an end (with inflation, higher taxes, e.g.), home buyers have a sense of urgency that they haven’t had in years. This is the stuff of a seller’s market. This is gettin’ while the gettin’s good.
What’s my evidence?
I called yesterday to set up a showing for an average home in Rocky Hill and it’s gone after two days on the market. Three offers, baby.
I spoke to a listing agent yesterday about two of her listings in Wethersfield. Four offers between the two. Both on the market for months before getting any offers.
I had three offers on my listing Avon and just received another call on it from an agent asking to write a back-up. On the market for over a month with no offers.
Anecdotal evidence to be sure but when each agent I talk to says the same thing - one minute there’s no interest and all of a sudden there are two or three buyers or that homes that have been sitting for months are suddenly selling, I know there’s something going on.
The Bad News for Home Sellers
There is still a lot of inventory out there. Not all towns are seeing this type of activity. Not all homes are getting the activity. This uptick in the market is selective. Home sellers should not take the surge in the market for granted. You still need to have a well-priced home, in a desirable area, with features people want for the price.
The Bad News for Home Buyers
If you happen to be shopping in a price range and town that is hot, get ready to pay asking price. Or, wait until Congress approves (maybe) another $8,000 credit.
Maybe this is temporary. Maybe it’s the last heartbeat before the patient dies. Maybe it’s the start of a climb in overall real estate prices that will last into next year. Who knows but all I can tell you is that don’t be surprised if there are multiple offers and don’t be surprised when there isn’t. It’s a weird market out there.
You may also enjoy reading:
CT Real Estate Market Reality Check - 5 Trends Driving the Market
9 Home Features That Sell Real Estate in CT
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