Recent headlines have stated that foreclosure homes accounted for 20% of all sales last year. That grabbed my attention, so I thought I would check to see how Hamden compared to the national statistics. According to the Greater New Haven Association of Realtors, 358 single family homes sold last year in Hamden. (That's up from the 354 I previously reported. Seems like some agents were slow to report their end of year closings.) Of the 358 Hamden sales, 44 or 12% were foreclosed properties. In addition, 28 or 8%, were short sales, which probably would have resulted in foreclosures. Added together, we have our 20%.

These are sobering statistics for an area that has some job protection from the universities in the area, which are the major employers. What it may reflect is the consumer's inability to obtain credit from other sources. With lines of credit reduced or cut entirely, the consumer has very few options, when money runs low.

To make matters worse, we are hearing that there may be a new wave of foreclosures in 2012. Many banks halted foreclosures last year due to questions about improper foreclosure procedures. Now that some of these issues have been addressed, the banks are ready to move forward to reduce their inventory. Foreclosures are a blight on their balance sheets.

What does this mean to our sellers? Houses have to be priced to perfection in 2012, if they hope to have a chance to sell.  A seller can increase the value of his/her house to some extent, with landscaping, staging, and good maintenance. Few buyers, however, will pay a premium for amenites they expect to find in a home. That said, the market seems stronger in Hamden this January. Inventory is seasonally low at 251 houses currently for sale. We have 27 homes on deposit and 13 sales this month. Compare this to 7 sales at the same time last year, and you can see there is some energy here. We can only hope that the momentum carries the market forward and up this year.

....smile more. Kidding aside, it's time to start 2012 on an optimistic note. After more than three years of doom and gloom, since the banking crisis, we are still here selling real estate. This market has tested us, and challenged us to be better at what we do. We have honed our skills and can sell in down markets, as well as thriving ones. Whatever, the eononomy, a good agent is a trusted advisor to his/her clients. This should be a source of pride to us all.

Let's look at 2012 as a year of opportunity. Prices may still be falling, but it's the suppressed interest rates, which make for the affordability of homes. I don't know how long these interest rates can continue low, when you consider our national debt, but let's not look a gift horse in the mouth. It's time to contact all those renters out there, to let them know they should consider buying. Imagine the stimulus to our local economies if we can get this group to become homeowners.

Start sending out emails or notes to your past clients to wish them a happy new year. Remind them of something sweet or amusing  that happened during their transaction. Or tell them how much you enjoyed working with them. Whatever the message, it will remind them that you are still in the business. It will put a smile on their faces. When they respond to your message, it will put a smile on your face too. Best wishes for the new year.

Hamden experienced a slower market in 2011, which comes as no surprise to those of us who follow economic data. Despite lower listing prices and historically low interest rates, worries about jobs and uncertain local, national, and world economies weighed heavily on buyers' minds. Money was cheap last year, but really hard to get from banks. Wealthy people with great credit had no problem obtaining mortgages. This was reflected in the surprising number of homes that sold in the upper brackets - $750,000 and up. The middle range got hit hard and the low range, below $150,000, made up of short sales and foreclosures, dragged the market down.  Buyers drove a hard bargain, and sellers not willing to negotiate are still holding their homes. I don't see a big change in the market this year, unless there is a stimulus of some kind to move the bank-owned inventory and make money more readily available to all buyers.

In 2011, 354 single family homes sold in town, down 11% from a year ago sales of 397 homes. More troubling, the average sales price per square foot dropped 6% to $135.54 from $144.47 in 2010. I'm using data from the Greater New Haven Association of Realtors and looking at "average" sales prices. As we know, statistics are skewed by the sales of very low priced foreclosures, but that has been a factor for several years now. We are still seeing a drop in prices.

What's it going to take to break this log-jam? For one, it's getting cheaper to own, than to rent. With four big colleges in the area, there is always a demand for rentals, so prices stay high. It makes sense to try to find a mortgage, such as a Connecticut Housing Finance Authority "CHFA" mortgage, and buy a private home right now. Housing is not a luxury - we all need a place to live. I tell my clients, "If you are paying for housing, why not pay for a place you can own?" By the time renters come up with two month's worth of security and the first month's rent, they effectively have a down payment.  Second, there are small signs of an improving economy. These recessions don't last forever, despite the never ending feel of this one. The economy will start to grow again, and it can't come a moment too soon.

This Saturday, September 17th, the Whitneyville Branch of the Hamden Library system will be open from 9:30 to 1 p.m. , thanks to the efforts of the Whitneyville Civic Association and the generosity of librarian Nancy McNichol, who has switched her normal scheduled hours and given up a part of her weekend, to make the library available to the community. I love to spend time at a library, so I'm thrilled to have it open for a Saturday morning outing for kids and book lovers of all ages. These Saturday hours will continue through the Saturday after Thanksgiving. We hope it can become a permanent schedule.

The Whitneyville Civic Association is a group of volunteers that work to improve the look and the quality of life in our neighborhood. The request for weekend hours was part of a Top 5 Priority List presented to the Town of Hamden, which includes things like bike lanes for those who want to bike to nearby New Haven, about 1.5 miles from the center of Whitneyville. Mayor Scott Jackson, attending the last Association meeting, remarked how citizens and town officials working together can get things done, despite tight fiscal budgets. It takes vision to improve a community, some creativity and the work of so many volunteers. You can read about the Whitneyville Civic Association at www.Whitneyville.org.

You can visit our library at 125 Carleton Street, corner of Putnam Avenue, one block west from Whitney Avenue. Make sure you thank the librarian!

Now that we are back from the Labor Day break, it feels like a good time to take stock of what is going on in our local market. Here in Hamden, sales of single family homes year to date number 225. This compares to 287 at the same time last year, so we are down 22%. Barring any unforeseen stimulus packages, it looks like a down year. Ever the optimist, I'm thinking we can only go up from here, right?

Our average sales price is $236,568, down from $250,135 a year ago. "Average" roughly translates to a 1700 square foot house with 1.5 to 2 baths. Average price per square foot is $138.80 vs $145.54. Marketing time is up to 88 vs 67 days on market. The Sales Price to List Price percentage is 94.53% now vs $96.04 YTD in 2010. So what can we learn from this and our own observations as Realtors? Anyone selling a property now is facing some severe headwinds. Bank short sales and foreclosures are still a large percentage of the market. 46 of the 225 homes sold, or 20%, fell into this category. In the prior year, it was closer to 10%. This skews the statistics by quite a bit, and makes pricing a home for sale a research project. I have noticed that banks are getting a bit more anxious to move their properties, and are dropping prices on unsold inventory more quickly. All statistics are courtesy of the Greater New Haven Association of Realtors.

Are there any positive here? I think so. Our inventory in Hamden is still moderate at 308 single family homes for sale. A good percentage of listings are expiring unsold, and many are not relisting. Bank owned properties are selling. Their prices have dropped to a point where they are quite attractive to investors. The numbers finally work. People with good credit have many good choices. This is a perfect market for someone who wants to buy a property and has nothing to sell. Those are the people who should be jumping into the market now. Housing is certainly not a passing fad - we all need a place to live, whether as owners or renters.

Free? Did you say free? Not so fast - there is always THE CATCH.

I am presently working with buyer clients on purchasing a bank foreclosure in Hamden. When the offer came together, based on the purchase price, the bank sent over its contract. This is standard procedure, but I advise my clients to read the bank contract very carefully, because it is written 100% in favor of the bank. There is nothing illegal about this; it is just something anyone buying a foreclosure should be aware of. No one likes surprises at the closing table, like added taxes due or other fees.

Connecticut is an attorney state - meaning that most purchasers and sellers are represented by an attorney at closing. Because of this, there have been far fewer incidences of fraud and title problems, than in other states. The bank contract mentioned in several places, that the buyers were free to use counsel of their choice, but that there were benefits to using the bank's closing attorney. Among the benefits were quick closings with few complications and a free title policy for those taking advantage of the offer. My clients have owned several other properties and wanted to get their attorney's opinion, which I strongly encouraged, because I know their attorney has their best interests in mind. In twenty years in real estate, I have never closed without an attorney representing my clients.

In speaking with their attorney, Bruce R. Peabody of Winnick, Ruben, Chambers, Hoffnung & Peabody LLC in New Haven, I learned a few things about title that I think all Realtors in Connecticut should know. I am passing this along to you, for learning purposes. This is one of the great things about Active Rain - you can get the word out to fellow agents quickly and encourage discussion.

Attorney Peabody writes, " One of the things that a buyer must think about when purchasing a bank-owned property is whether the buyer can actually take advantage of some of the offers in the bank's contract. Because these contracts are used nationwide, some of what looks like a cost savings to the buyers cannot or should not be used in Connecticut. While in some other states, the seller's attorney provides the title search, in Connecticut it is provided by the buyer's attorney --- which is a good thing, so that there is a new seach done," going back 40 years to make sure the title is clear and that no errors were made in the foreclosure process. 

He adds, "if the buyer accepts the title policy provided by the seller, and it is based upon a less-than-thorough title search, any title deficiency which shows up at the time the buyer goes to sell---while it will be covered by the title insurance policy---may require extra time and effort to clean up at that time, which could delay the closing." In addition, there may be complications with mortgage lenders, who want to see a title search, title commitment, and an insured closing letter all from the same source, usually the approved attorney.

My thanks to Attorney Peabody for giving me a quick tutorial on this issue. As buyer agents we have to be careful to advise our clients properly. In no way do we wish to act as attorneys, but it is in our interest and those of our clients, to make sure our clients are making decisions based on sound information. I welcome your comments.

Major newspapers ran the story today. Statistics gathered by the U. S. Commerce Department show sales of 321,000 new homes in 2010, down a whopping 14.4% from the 375,000 units sold in 2009. This is the 5th consecutive year of declines, since prices peaked in the boom year of 2005. The Wall Street Journal calls 2010, "the worst year on record for the battered building industry" (Zibel & Bates, WSJ 1/26/11), and states tht 600,000 units per year is considered to be a "healthy" rate of sales by most economists. These are sobering words, but what do they mean for each of us? The governent culls this information on a national basis. We know, however, that all real estate is local. Here in Connecticut we saw a slight improvement in sales in 2010.

Despite the startling headline, can there be a silver lining here? Economies rise and fall, and this dip has been deep and prolonged, but the need for housing is basic. As our population contines to grow, the need for housing will too. Prices continue to fall, but this can be a great opportunity for our buyers. The alternative, of course, is to rent. Here in New Haven County, a one bedroom apartment can cost $1000 per month, and utilities are not included. At the end of the lease, renters have nothing to show for their expenditure - no ownership and no tax deduction.

There are going to be some great sales on new construction in 2011, as builders work to clear the excess inventory. It is up to us as agents to scout out the best deals for our buyers. Interest rates are still good, but climbing. This opportunity to buy at a discount in prices and interest rates will not last forever. Don't let a negtive headline throw you off your balance. Seize the opportunity.

Springtime means spring cleaning. How many of you have old computers, printers and related "stuff" in your basements right now taking up valuable space? Bring those electronics to Hamden Middle School this Saturday, May 22nd. Besides computers, you can bring monitors, printers, fax machines, copiers, old televisions, VCRs, phones, stereos, radios, microwaves, cameras and camcorders.

In addition to recycling, there will be a "shredding event", where you can bring up to 4 bags of personal paper and household records for shredding. It's a great way to safely dispose of old bills with personal information and account numbers.

Who: This recycling event is open to residents of Hamden, Cheshire, Meriden, North Haven, and Wallingford.

What: Electronic Recycling, Paper Shredding limited to 4 bags per household

When: Saturday, Mary 22, 2010 from 9 a.m to 1 p.m.

Where: Hamden Middle School, 2623 Dixwell Avenue, Hamden, Connecticut 

Why: Let's keep Connecticut green!

See you there!

After the madness leading up to April 30th, I left for a vacation to Italy. This trip was planned a year ago, long before any of us Realtors knew anything about the first time homebuyers program. Our flight to Venice left at 9 p.m. the evening of the 30th, and I was so wound up that I was on my Blackberry negotiating a deal until 5 minutes before take off, when the flight attendant asked that all electronic equipment be turned off. Bummer. It was hard to let go of the insanity. I don't know how the homebuyers program played out in your areas, but here in New Haven County we were very busy, particularly in April.

It took a few days to get on "Italian time", which is both a leisurely pace and a state of mind. What a joy, and so different from my usual need to schedule everything to the minute and be in control of everything. I was able to let go and enjoy the beauty around me. And there is beauty everywhere. The countryside, the food, the shopping, the gondoliers, all are beautiful. There is art everywhere. It takes time to absorb all this beauty, therefore the more leisurely Italian time makes sense. We stayed in a villa in Padua, about half an hour outside of Venice, where the prices for lodging drop dramatically. The prices in Venice are impressive (wildly expensive). We were able to live like make believe royalty in a manor that has been in the family since the 900s. Yes, that is 900s, not 1900s. The place is called Villa Mandriola and rented for $2850 Euros for the week, in the off season. Not a bad deal for the six of us travelling together. From the Villa we ventured out every day to discover new towns.

From Venice, we took the high speed train to Rome. The ride through the countryside in Florence was breathtaking, with the tilled fields, the grapes, the olives, and the ancient hilltop towns. It is a trip worth taking. For about $100, we made the trip in under four hours. In Rome we enjoyed the best weather of the trip. Sparkling blue skies and warm temperatures, perfect for dining al fresco. We also enjoyed the best food of the trip.

When I travel, I imagine myself at the end of a large rubber band. As I leave, I am pushed forward, away from my life in Connecticut. I slowly hit my stride in the new location. After a few days the rubber band has stretched and I am enjoying every minute. Towards the end of the week, the rubber band starts to pull me back to my "normal" life, and I start to think of home and the kids more and more. On Monday, the rubber band was in full force pulling me back to the USA. I was ready to return home and hit the ground running. A seven hour delay at the Rome airport and a 10 hour flight around that pesky volcano in Iceland showed me that I was not in control of anything. Ugh. No sooner were we at JFK airport in New York, than I was twitching to get on the Blackberry again.

What happened to that state of bliss I experienced in Italy? More importantly, how can we live a little bit more like the Italians, and not make ourselves so crazy? Living a life with balance is what we all strive for. A lot of the articles on Active Rain has dealt with this topic lately. I suggest getting physically away periodically to recapture some of that balance and bliss we are all searching for. If not, there is always the antipasti and vino.

Happy Earth Day! After a tough winter, we in Connecticut have been rewarded with an extra month of Spring this year. Everything has greened up at once. We gardeners are thrilled, although, we wonder what is going to be left to bloom. It's only April 22nd, and already we have seen the early rhododendrons, the azaleas, the tulips, the lilacs and even the trees in bloom. We are almost a month ahead of schedule. I don't remember an earlier Spring in the 25 years I have lived in Connecticut. No complaints here, other than lots of sneezing. We love nature's show.

I have been walking around my neighborhood of Whitneyville in Hamden the past hour, enjoying the weather and saying hello to people walking by. A group of Hamden High students is across the street from my office celebrating Earth Day. It reminds me of the first Earth Day, in which I participated, as a student at Wallkill High School in New York State. I was a freshman then (was it really 40 years ago?), and the messages were exhilarating and frightening at the same time. The main message then and now is, we need to be stewards of our planet. The lessons of that day never left me, which is what is so gratifying when I see students participating in Earth Day events.

I hope you enjoy the day. This is Lake Whitney, named after one of our favorite sons, Eli Whitney, the inventor of the cotton gin and assembly line manufacturing. He lived in the neighborhood, and his house still stands about one block away from the lake. Celebrate the beauty of your communities.