Archive for the 'Real Estate Market' Category
Is Real Estate Ever Worth Nothing?
November 25th, 2008 categories: Central Connecticut News & Information, Real Estate Market
I was watching Morning Joe today. Fill-in co-host, Chuck Todd, said something I’ve heard before - that some homes are worth nothing.
I can think of few instances where a home could be worth nothing.
Nuclear waste spill. Located on earthquake fault line. Maybe.
Even this instance, where a woman paid $1.75 for an abandoned home in Saginaw Michigan. That seems ridiculous to people in CT where our median home price is around $240,000 but in Saginaw, the median sales price is about $76,000, according to Zillow. Given the state of the economy in Michigan. $1.75 seems about right (the buyer also has to pay some back taxes).
People will always need a place to live. There is a finite supply of land. The population keeps growing.
Sure, real estate can go down in value because of the economy, too many homes on the market, not enough buyers, mortgages harder to obtain, catastrophic events like 9/11, etc. But it’s hardly ever worth nothing.
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Median Sales Price and Days on Market By Town in Connecticut
November 18th, 2008 categories: Central Connecticut News & Information, Real Estate Market
Median Sales Price, Number of Sales and Average Days on Market by Town for Hartford County Connecticut.
How does October compare to the first, second and third quarters?
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Central Connecticut Real Estate Market Report 11.17.2008
November 17th, 2008 categories: Central Connecticut News & Information, Real Estate Market
From the Greater Hartford Association of Realtors, October 2008 sales statistics show:
There were fewer new listings in October 2008 compared to last year but overall there are more homes on the market.
The median sales price shows a big decline - now $230,000. It’s been around $240,000 - $250,000 this year.
Fewer homes are selling and those that are selling spend more time on the market.
The biggest decline is the dollar volume of sales which directly impacts real estate agents and brokerages. I’m already noticing offices closing and hear anecdotal evidence that agents are leaving the business.
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Beganski’s Law of Buying Real Estate
November 10th, 2008 categories: Central Connecticut News & Information, Home Buyers, Real Estate Market
Beganski’s Law of Buying Real Estate in any market is:
“If you are about to write up an offer to buy a house, another buyer has just submitted an offer or is currently writing one.”
Although more common in a seller’s market, Beganski’s Law of Buying Real Estate also occurs in a buyer’s market. In a buyer’s market, the effect is more significant, causing buyers to wonder if the other offer even exists. In a seller’s market, buyers must assume there are other buyers about to put in offers.
Not only have I witnessed this happening to my clients, it happened to me this weekend which is why I finally named it.
I went to see a house I’ve noticed in the MLS for 3-4 months but never had a chance to go see it in person. I liked it enough to talk to the listing agent who told me an offer was just negotiated and accepted.
Of course there was. Moving on…
Beganski’s Law of Buying Real Estate strikes again.Don’t lull yourself into thinking that in this market, you will be the only buyer interested in a particular property. In other words, DON’T be like me.
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Are Homeowners Clueless About Their Home’s Value?
October 30th, 2008 categories: Real Estate Market
According to a recent survey by Zillow.com, the worst place in the world to find out how much your home is worth, only 51% of homeowners surveyed think that their home lost value in the last year.
32% thought the value of their home increased
17 % thought the value of their home stayed about the same
The author seemed stunned by this, remarking:
“There’s no doubt we’ve been deluged with depressing economic and housing news over the past few months. Every day is a new headline, every channel has a new pundit and the recession debate has shifted from “if” to “how long.”
I thought we were headed for a full-fledged depression? Nevermind. Zillow seems to think people must be pollyannish or have tissue in their ears while listening to the constant media attention on faltering home prices, subprime mortgages and bailouts. Even the title of their article analyzing the survey says a lot - “Strangely, “Not My House” Sentiment Continues, Albeit a Smaller Group.” So, if you think your home isn’t worth less than it was last year you’re a weirdo?
I have this expert analysis:
The survey doesn’t really account for why people think the value of their home may have increased. If you asked me, I would say “yes, my home increased in value because I just remodeled a bathroom and did some major landscaping.” People may in fact be justified in thinking their home has increased in value because of significant upgrades, renovations or improvements.
There may be another explanation. Their home may actually be in a market where home values are steady or in a market segment where there is demand for housing.
And yet one more, from GregC who commented on the article:
“Perhaps this is because for the vast majority of homeowners in the country the value of their home TO THEM has not changed.
It is still generating the imputed rent of a place to live and enjoy with their families. Perhaps they do take the long range view that their home has neither lost of gained value - to them - until they cash it out.”
Sure, there are sellers out there clinging to 2007 prices but as the market slows, we’ll find out who the motivated sellers are and aren’t. They’ll be the ones with the sold sign dangling from the white post in their front yard.
One last snipe against Zillow. I can’t trust anyone who can’t add. In the figure that breaks down the data by region and puts the figures into a pie chart, the Northeast’s pie chart doesn’t add up to 100%. According to the chart, 45% of people surveyed in the Northeast thought their home decreased in value, 23% thought it increased and 19% thought it stayed the same. 45+23+19=87. And I only scored a 575 on my math SATs.
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