Connecticut Real Estate Blog - Real Real Estate in CT

It snowed some today so I took my new camera out for a stroll. 

A tree in my backyard.

A fallen tree across the street.

More trees across the street.

I’m continuing to dig into just What the Heck is Going On in the Central CT Real Estate Market?  Today, I’m going to look at the town of South Windsor.  Having sold my own home in South Windsor in 12 days with multiple offers, I thought it would be interesting.

Like the other three towns I looked at, Newington, Manchester & Glastonbury, South Windsor seems to be in a normal, balanced market.    I broke the figures down into an analysis by # of bedrooms.

South Windsor

3 Bedroom Homes

18 Sold in Last Three Months and there are 29 Active Listings - 4.8 Months of Inventory.

Median Sales Price was $258,900 and homes spent an average of 50 Days on the Market.

4 or More Bedroom Homes

20 Sold in Last Three Months and there are 30 Active Listings - 4.5 Months of Inventory.

Median Sales Price was $372,450 and homes spent an average of 54 Days on the Market.

2 Bedroom Condominiums

33 Sold in Last Three Months and there are 37 Active Listings - 3.3 Months of Inventory.

Median Sales Price was $185,000 and homes spent an average of 32 Days on the Market.

3 Bedroom Condominiums

6 Sold in Last Three Months and there are 10 Active Listings - 5 Months of Inventory.

Median Sales Price was $228,400 and homes spent an average of 62 Days on the Market.

And just for fun, I took a look at one more town, Rocky Hill.  This town is more of a mixed bag.  If you’re selling a 2 bedroom condominium, the market for your home is in a seller’s market with units selling within about one month and there is less than three months of inventory. 

But, single family homes with 4 or more bedrooms are not in high demand in Rocky Hill and there is 18 months of inventory on the market. Here are the details.

Rocky Hill

3 Bedroom Homes

14 Sold in Last Three Months and there are 18 Active Listings - 4 Months of Inventory.

Median Sales Price was $264,900 and homes spent an average of 76 Days on the Market.

4 or More Bedroom Homes

2 Sold in Last Three Months and there are 12 Active Listings - 18 Months of Inventory.

Median Sales Price was $326,950 and homes spent an average of 57 Days on the Market.

2 Bedroom Condominiums

25 Sold in Last Three Months and there are 22 Active Listings - 2.6 Months of Inventory.

Median Sales Price was $209,900 and homes spent an average of 33 Days on the Market.

3 Bedroom Condominiums

3 Sold in Last Three Months and there are 7 Active Listings - 7 Months of Inventory.

Median Sales Price was $259,00 and homes spent an average of 55 Days on the Market.

Do you really want to know how bad the real estate market is?  Are you sure? 

OK. You asked for it.

The Towns & Median Sales Prices

I chose to feature three towns in my area of expertise: Manchester, Newington & Glastonbury.  In 2007, the median sales price for a single family home in Manchester was $219,900; $249,900 in Newington & $399,900 in Glastonbury. Two are east of the river, one is west and they represent the middle of the market. 

As you can see, the prices have either stayed stable or risen from 2006 - 2007. But, the prices only tell you part of the picture. 

Supply & Demand

Sales price is just one method used to analyze the market.  A look at supply & demand is another tool and is used to predict market activity in the future based on past number of sales and how many homes are currently for sale, or the Absorption Rate.  To illustrate the absorption rate, let’s look at Glastonbury.

In all of 2007, 371 homes sold, or about 31 homes per month sold.   Currently, there are 132 homes on the market and assuming that about 31 homes will sell per month, it would take 4 months to sell the current inventory (Or 371/12=31, then 132/31=4, the estimated number of months it will take for a home to sell).

Generally, it is considered to be a seller’s market when there is less than 3 months inventory on the market.  3-6 months of inventory is considered normal or balanced, while anything above 6 months is considered to be a buyer’s market. 

Based on this, Glastonbury is generally experiencing a Normal & Balanced Market. 

How about Newington?

In 2007, 241 Homes Sold.  There are 71 on the market.  There is a 4-month supply of homes on the market.

 And Manchester?

In 2007, 513 Homes Sold.  There are 173 on the market.  There is a 4-month supply of homes on the market.

Slicing & Dicing

Let’s dig a little deeper into the numbers.  This time, I’ll look at the absorption rate over shorter periods of time and I’ll look at condominum sales, too. Instead of using the total # of homes sold in 2007, I’ll only go back 6 months and then three months, so the sales data is the most current.

 Glastonbury: 6-month & 3-month for single family homes

6 Months: Three months worth of inventory or normal market.

3 Months: Six months of inventory or normal market.

 Glastonbury: 6-month & 3-month for condominums

6 Months: Two months worth of inventory or Seller’s Market.

3 Months: Four months of inventory or normal market.

Newington: 6-month & 3-month for single family homes

6 Months: Three months worth of inventory or normal market.

3 Months: Four months of inventory or normal market.

Newington: 6-month & 3-month for condominiums

6 Months: Two months worth of inventory or Seller’s Market.

3 Months: Two months of inventory or Seller’s Market.

Manchester: 6-month & 3-month for single family homes

6 Months: Three months worth of inventory or normal market.

3 Months: Five months of inventory or normal market.

Manchester: 6-month & 3-month for condominiums

6 Months: Three months worth of inventory or normal market.

3 Months: Four months worth of inventory or normal market.

But you thought the market was Teribble?  And that I was going to confirm how bad it was? 

It’s not great but it’s not bad - it’s normal.  We just haven’t seen normal in a while and we don’t remember what it looks like. 

I caution you on trying to use this info, which is general in nature, to apply it to your situation.  The most accurate way to utilize absorption rate is to compare similar properties (number of bedrooms & price range) and determine what type of home is selling and what isn’t, because it can differ.  With that said, these three towns are experiencing a balanced market over all- not a selling frenzy! 

Let’s look into my crystal ball…

It looks like Glastonbury is moving into more of a buyer’s market, at least for single family homes.  This makes sense since Glastonbury’s price range is above the median price range for the area and this price range is having more difficulty in most parts of the state. 

But Newington is in a seller’s market for condominums.  This also makes sense since condominiums in a “just around the median” town like Newington attract first time buyers who are almost always buying, regardless of the market. 

If you are selling or buying…

Make sure your agent gives you an analysis of the absorption rate in the town and price range you are buying/selling in.  Without this information, you cannot accurately price your home for sale or present an offer. 

As of last week, home heating oil cost $3.25/gallon.  I know because I had to spend my young daughter’s college fund on filling my oil tank for a whopping $700 and change.  With costs expected to remain high in the future, I could scrap college altogether or invest in some thermal underwear.

If you want a better solution for your home, consider a Home Energy Tune-Up.  With this energy audit, a home inspector will take a look at your home and recommend options for improving your home’s energy efficiency.  In a highly detailed report, the inspector will look at the efficiency of your insulation, heating/cooling systems, appliances and windows and recommend specific changes, estimate the cost and tell you how long it will take for you to recoup the expense. 

Here is a sample report supplied to me by a client who had this done earlier in the year. 

home-energy-tune-up.pdf 

For more information, contact either of these licensed home inspectors in CT.

Mark Roy at East Coast Home Inspections or

Robert Kulalowski at Cedar Hill Inspections

Or, visit the Home Energy Tune-up Website.

One final note - if you’re thinking of selling your house, this report and your implementation of the recommendations would differentiate you from other homes on the market and be a great sales tool.

Too many homeowners are afraid to paint their walls with color but color can really make a house sell.  Color is an inexpensive and easy way to radically transform a space, and it can set your house apart from the competition.  If you’re thinking about selling your house this year or even if you just want to freshen up the space you live in now, there are two great sources for choosing trendy colors.

Sherwin Williams has predictions for 2008.

Pantone is the company known best to graphic designers and printers for its color matching system but also makes predictions for color trends.  Style Chicago has thankfully put a summary of Pantone’s guide on-line (normally only available for purchase).

If you’re still afraid to paint your walls, here are some guidelines I follow when selecting paint:

• Once you’ve selected a trim paint, base your wall paint selections on the trim since the trim will be in every room. Then, pick some paint swatches you like for the rooms and hold them up to the trim paint swatch.  If you like it, set it aside.  Once you have a few selections for your rooms, hold up the wall colors to each other.  Weed out the ones that seem to clash until you have selected one or two wall colors for each room.  I’ve been known to take 50 or more swatches from the store and lay them out on the floor at home.
• Use an object in your home as a basis for your color selection, such as a rug, painting or kitchen coutertop.  If you like the colors together in the object, you’ll probably like them on the wall. 
• Get sample colors and test them on the wall first.  I’ll hold up fabric or window treatments to see how they look.
• Pick lighter or neutral colors if you’re afraid to go really bright or dark.