Connecticut Real Estate Blog - Real Real Estate in CT

Local Market Trends:  According to monthly statistics released by the Greater Hartford Association of Realtors, August closings were down 20% from last year.  Despite this and the fact that single family houses are on the market for 50 days on average, up nearly 22%, home prices rose by more than 3% to a median price of $267,500 when compared to August 2005. There are also 24% more single family homes on the market than last year at this time.  In Fairfield, Litchfield, New Haven, Middlesex, Windham, Tolland and New London counties, the trend is similar.

National Trends:  New home sales rose in August although the median price declined in 2003 levels.  Experts attribute the rise in sales to declining mortgage rates and incentives by homebuilders to move their inventory.  Builders are offering free upgrades such as stainless steel appliances, wood floors or granite countertops.

Interest Rates: The CHFA rate remains at 5.5%.  Earlier this year, CHFA announced increased income and spending limits.  For Hartford County, income limits increased to $81,000 (1-2 person household) and  $93,150 (3+ persons household).  In CHFA’s target areas, those limits went to $97,200 (1-2 person household) and $113,400 (3+ persons household).  Sales price limits are now $301,500 in Hartford County and $368,500 in CHFA’s target areas. Income limits and sales price limits vary significantly by county. For more on CHFA’s rates, programs and limits, visit www.chfa.org.

As widely anticipated, the Federal Reserve did not raise interest rates at their meeting last week. Supporting the Fed’s decision is today’s report that the U.S. economy is growing, but slowly, at 2.6% in the second quarter. According to Bloomberg News, “The report shows that Federal Reserve policy makers made the right decision when they ended two years of interest-rate increases in June, economists said. The lower borrowing costs since then, combined with a 15 percent decline in the price of crude oil, may keep consumers spending and economic growth from unraveling further.” Conventional mortgages are averaging 6.41% with .34% for points and fees. 

What does this mean for buyers?

-          Interest rates are leveling off – still historically very low.

-          Home sellers are not yet cutting sales prices.  Following the lead of builders, sellers are offering incentives like cash back at closing and cash to pay for repairs.  The logic in offering these incentives is that the homebuyer will benefit more from instant cash than a $20 reduction in mortgage payments over the life of the loan.

-          More homes to choose from – buyers do not have to rush to make offers and can take time researching and negotiating. 

-          Homes are still appreciating in value, although more slowly than in recent history.  With prices sliding, increased inventory and incentives, new homes are looking like a good deal, if you can afford one.

If you are an employee at a participating company, state agency or municipality located in Hartford, New Haven, Waterbury, New London or Willimantic, you may be eligible for a reduced-rate mortgage and a forgiveable loan to purchase and rehab a property in the city in which you work.

The Connecticut Housing Finance Authority’s Urban Rehabilitation Program (UR Home) offers a reduced mortate rate, currently 5.25%, or .25% below CHFA’s already low rates.  The program also offers a loan for repairs up to $20,000 for a single family or $25,000 for a multi-family (2-4 units), forgiveable 20% per year for five years.  Combined with their down-payment assistance program, CHFA is offering a powerful tool for buyers in Connecticut’s urban areas.

There are no income limits but there are price limits.  The program is only available through a select group of lenders and because funding is limited, the program is available on a first-come, first-served basis.  Not all employers, agencies and municipalities in the target areas may be participating.  For more information and terms, go to www.chfa.org

If you own pets and rent, you know that it can be difficult, if not impossible, to find housing. Unfortunately, many landlords just don’t want to deal with the hassles of irresponsible pet owners in their properties and so avoid renting to pet owners completely. This practice has left many well-loved family pets out on the street or dumped off at shelters when the owners can’t keep them. In fact, moving or no-pet landlord policies are among the top three reasons people give for abandoning their pets, according to the Humane Society of United States.

But you can see the perspective of many landlords. The majority of pet owners are responsible; but one irresponsible pet owner is a nightmare to deal with - damage to property, noise, complaints from other tenants and neighbors, liability due to dog bites & the increased insurance rates that go with the increased liability. In many cases, it just might cost the landlord too much to have to deal with accepting pets.

If you’re looking to rent and you have pets, here are some tips to find housing that already accepts pets or how to approach a landlord who doesn’t advertise a pets-allowed policy.  (more…)

My morning paper greeted me with the headline, ‘Pop Goes Housing Bubble.”  Chicken Little couldn’t have said it better himself if he ran through the streets crying, ”the prices are falling, the prices are falling!” 

The article in the Hartford Courant, appearing September 26, 2006, illustrates my frustration with the media.  While the article is factual in that there is a national  decline in prices and sales, the article does not mention that Connecticut’s real estate prices have remained steady until the eighth paragraph.   In fact, median prices are up by more than 3% over this time last year, according to the Greater Hartford Association of Realtors.  Other realtor boards have reported similar numbers. 

It is entirely likely that Connecticut will experience no price increases in the coming months or may even see a decline.  However, it is irresponsible to report an event before it has happened in our state.  It gives readers a false impression just to make a cute or dramatic headline. 

Real Estate is a local business.  What is happening in San Diego, California, may not be taking place here.  Similarly, what is happening nationally cannot be said to apply to Connecticut.  Prices may indeed fall in our state - but it hasn’t happened yet.

I wanted to be a real estate agent for a few years before I actually became one.  The time was right once I had some experience as a home owner and real estate investor.  It became even more right when my career in marketing was not what I had hoped for.  So, I signed up for a class to become a part-time agent, just to get my feet wet. (more…)