Archive for the 'Real Estate Market' Category
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
Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.
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Connecticut Real Estate Reality Check - Five Trends Driving Today’s Real Estate Market
August 5th, 2009 categories: Real Estate Market
One of my favorite movies is Moonstruck. I especially like the scene where Cher slaps Nicholas Cage, yelling “Snap out of it!”
This post is one big collective slap to myself, home buyers, home sellers, fellow Realtors and just about everyone else. Snap out of it. What you know of the real estate market or think you know has changed.
I count five trends that are shaping the real estate market in Hartford County Connecticut today.
Longer Waits for FHA/CHFA Mortgage Commitments
In 2005, FHA (and VA) insured mortgages were only 6.8% of the total number of mortgage applications. In 2009, that percentage is nearly 36%, according to the Mortgage Bankers Association. It only makes sense that with such an increase in demand, home buyers and sellers should expect a longer waiting time to obtain mortgage commitment. On average and according to the mortgage lenders I work with, expect a 4-week waiting period from the time of mortgage application to get mortgage commitment. Add an extra week to that wait if the buyer is using CHFA.
That’s longer than it used to take - you used to be able to close within 30 days of writing a real estate purchase contract. Expect 45 days to close. Plan accordingly.
Expect Appraisals to Be a Barrier to Home Buying and Selling
Only in effect since May 1, 2009, the new HVCC rules affecting Fannie Mae and Freddie Mac mortgages (not FHA/VA) are causing problems. Delays. Higher fees. Botched appraisals. All of this can lead to contracts falling apart. Expect it and try to mitigate any issues. The Chicago Tribune has a great article which recommends, for example, that home sellers be present during an appraisal, offer the appraiser a list of improvements, and discuss with the appraiser what constitutes a comparable home.
A Pre-qualification Letter is Not Good Enough
I’ve never thought a pre-qualification letter was good enough for my home buyers or for my home sellers. But especially today, it amazes me how many agents still present offers with just a pre-qualification.
What’s the difference? Specifics - a good pre-approval letter will note most or all of the following: the borrower’s credit or credit worthiness, property address, mortgage amount, rate, down payment, type of mortgage, and what the lender has reviewed prior to issuing the letter (pay stubs, w-2s, etc). Without this information, a buyer cannot know for sure what they can afford and a seller cannot be as certain as possible that the buyer will qualify for their mortgage.
Buyers Are Nervous About Overpaying
When home buyers are nervous about overpaying for a home, they do several things: they write offers for far less than the list price (and sometimes less than comparable sales), they ask for a lot of repairs and they write multiple offers looking for a seller who’s willing to make a deal. They’re also quick to withdraw an offer at the slightest sign of negotiation. Who can blame them?
Your House May Just Be The “House of the Moment”
The strangest thing I’ve noticed is that some houses receive multiple offers and others don’t. There seems to be no rhyme or reason. One agent I spoke with called it “the house of the moment” syndrome. A home can be on the market for months and all of a sudden, buyers descend upon it all at once. Why? Other homes in comparable neighborhoods, condition and price just sit while one house gets three or four offers.
If I could use only one word to describe today’s real estate market, it would be “complicated.”
You may also enjoy reading:
New Appraisal Standards Complicate Real Estate Market
Don’t List Your Home on Monday…If You Want to Stand Out in Greater Hartford Real Estate Market
Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut?
Get Unleashed - the blog that’s helping to find homes for people and pets.
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Is That Condo FHA or CHFA Approved?
July 21st, 2009 categories: Real Estate Market
Today, FHA financing accounts for approximately 1/3 of all new mortgage applications (according to Mortgage Bankers Association).
If you’re a buyer looking to purchase a condominium and you plan to use FHA or CHFA (and VA) financing, then the prospective condominium complex must be approved by FHA (if you’re going CHFA, the complex must be approved by both FHA and CHFA).
Thankfully, it’s pretty easy to find out.
CHFA Approved Condos - note that CHFA has additional restrictions so talk with your lender
If the complex is not on the FHA list, talk with your Realtor & lender about getting it approved. FHA has a process called “spot approval” for complexes not already on the approved list.
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