economy: 2010 New Home Sales Lowest in 47 Years. Opportunity?
- 01/26/11 04:19 AM
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 … (2 comments)
economy: First Quarter Hamden Market Report
- 04/01/10 06:12 AM
We saw a significant jump in inventory this quarter, as the temperature started to improve. As of this morning, there are 252 single family listings in Hamden, of which 41 are on "on deposit/continue to show" status. The bulk of the inventory (95 homes) is priced between $200-$300,000. Of these listings, prices have been raised on only 6 homes. There are fewer price cuts, however, probably in anticipation of a good month for sales in April. Buyers have 30 days to make their choices and get a house on deposit to qualify for the first time homebuyers tax credit of $8000. Of … (0 comments)
economy: Snapshot of Hamden sales YTD
- 03/03/10 01:43 AM
The picture is looking rosier. The inventory is still low in Hamden, about 200 active listings, even as we march towards the April 30th deadline for first time homebuyers' to be eligible for the tax credit. I took a look at what has sold in town since January 2nd, and found that 46 single family homes have closed year to date, vs 36 in the same period in 2009. Of these, a sobering 20 were bank owned or short sale properties. These short sales statistically brought down the average sale price in town to $135.29 from the mid $150s at the … (0 comments)
economy: Changes for Fannie and Freddie
- 02/11/10 03:16 AM
While this sounds like the latest book in a series of children's stories, the ending to this volume is uncertain, at best. The U. S. financial system was able to dodge the bullet due to massive govenment intervention in the past year and a half. Huge infusions of money kept banks "liquid", and for the most part, consumers today are able to do banking as usual. There are, however, dark clouds building on the horizon, that may pose a threat to banks, lending, and in the long run, people's ability to get affordable mortgages. Fannie Mae and Freddie Mac, which were created to provide local … (0 comments)
economy: Winds of Change
- 01/21/10 02:38 AM
It is interesting how things that happen a world away can have an affect on our everyday lives. Some Chinese banks have been told to stop lending through the end of January. What, you may ask, does that have to do with the state of real estate in Connecticut? Plenty, maybe.... Chinese Premier Wen Jiabao recently stated that China may have to slow the flow of credit. There are rumblings of an over heated credit market, and bubbles building in real estate and commodity prices in China. Sound familiar? An overheated economy causes inflation, and by pulling back lending, Chinese economists hope to keep … (3 comments)
economy: The Real Estate Roller Coaster.....
- 11/18/09 05:00 AM
or is it the Fun House? Either way, we Realtors have to manoeuvre dips and turns and blurry images to figure out where the market and overall economy are going. The headlines seem to change every day. Today's news from the Commerce Department states that housing starts fell in October, due to a sharp decline in new residential construction. But it this a bad thing? If we have too much unsold construction out there, doesn't it make sense to sell that first before anyone takes on new projects? I would think this dip could be positive, by helping us move the existing … (0 comments)
economy: The Conundrum of Bank Lending
- 10/24/09 12:34 AM
Despite billions of tax dollars poured into banks that are "too big to fail", bank lending is down for the year. TARP money flowed to banks in the heat of the banking crisis a year ago, but the government placed no specific requirements for the use of the funds, other than for banks to have adequate reserves. The FDIC has released some statistics, and they are troubling, particularly to real estate agents. The largest banks in the U. S. have curtailed lending this year, despite a large growth in deposits. Tight lending affects small businesses that hire, and home buyers. The top five banks in the … (0 comments)
economy: The demand for homes jumps in September
- 10/23/09 06:37 AM
Whether attributable to the $8000 tax credit or an improving economy, NAR announced today that sales of previously owned homes rose to their highest level in over two years. There is always a pickup in sales in September, when kids go back to school and parents re-focus on house hunting. This year, however, featured the perfect trifecta: the tax credit, low prices and historically low interest rates. According to NAR, home sales rose 9.4% from August levels to an annually adjusted rate of 5.57 million units. Sales were highest in the West, but we are seeing inventories drop here in Connecticut too. This has to benefit our … (0 comments)
economy: The wisdom of Solomon; the patience of Job
- 10/13/09 02:20 AM
People often ask me what is takes to be a successful real estate agent. The above referenced skill set comes to mind. In a market like this, it takes experience to know that the economy will eventually turn around. We need to convey that sense of hope to our clients, and particularly to our buyers who are frozen with fear at the thought of putting their hard earned dollars down on a property that may drop in value. We seasoned agents have seen downturns before. Over time, the market bounces back. Here in Connecticut, there is a sense that the dark clouds … (0 comments)
economy: The Zen of Foreclosures
- 09/15/09 09:42 AM
The darn house is back on the market again. For the third time. I put in an offer on this bank owned property last May. The offer was eventually accepted and the tome of bank papers was delivered to my client. No changes could be made to the paperwork, the terms were onerous and the closing had to occur within 30 days. My client wrote the bank to say that he could perform under the contract, but would need 45 days to close. With the economic situation as it was then, lending was taking longer than usual. The bank rejected our "accepted" offer … (0 comments)
economy: Happy September - get those first time homebuyers under contract!
- 09/01/09 03:05 AM
This is the month to focus on your first time homebuyers. You can take off in October if you wish, but now's the time to work. Remember, your buyers must be closed by November 30th to take advantage of the homebuyers $8000 tax credit. With lending a bit slow (to put it mildly), you are going to need 60 days at least to close these deals. I expect to see a significant pick up in real estate activity, which is happy news for all involved. There is good inventory right now and interest rates are attractive, so there are no excuses. … (1 comments)
economy: Jogging and blogging around Hamden
- 08/28/09 08:08 AM
Let's face it folks, this has been a frustrating year in real estate. There are hints (stock market) and even signs of an improving economy, but the turn around seems so slow sometimes. We need job creation in Connecticut and a State Budget to work with. Despite all the delays, however, we seem to holding our own with the real estate market. As we know, all real estate is local. What happens in Vegas, stays in Vegas. Here in Connecticut, and particularly in Hamden, our housing inventory is stable. Right now we have 251 active single family listings in our town of 62,000. Of … (2 comments)
economy: 62 degrees in Hamden today. Euphoria breaks out!
- 02/11/09 09:13 AM
After a long and trying winter, this breath of warm, fresh air is most invigorating. It is wonderful to feel good and positive again, if only for a day. Now let's try to keep this feeling going. There is another big headline today that may impact Hamden in a positive way. The Economic Stimulus bill finally was passed by Congress. If this opens the spigot of money for municipalities and consumers, we may soon be singing a happier tune. Before we get too ahead of ourselves, winter is by no means over, and neither is this recession. There are, however, signs of change … (2 comments)
economy: With an eye towards the future....
- 01/30/09 07:27 AM
This afternoon, I had the pleasure to meet with a building designer in Branford, Connecticut to talk about real estate and design trends. Like all small business owners, we are both being impacted by the economy, both local and national. Rather than having a gripe session, we had fun thinking creatively about the future for our businesses. We mused about reinventing ourselves virtually, and innovating to meet the needs of the next generation of customers. I know there are millions of conversations just like ours, occurring throughout our nation. Creative people will always find a way to overcome obstacles. Our economy was built on this. Our discussion turned towards a new trend … (0 comments)
economy: Tap into the momentum
- 01/05/09 11:23 AM
How many of our prospects made a new year's resolution to buy or sell a home this year? I'm sure there are many, and now is the time to contact them. Ask them, "Is this the year for a change of address?" I had two people call me today, saying they are ready to make a move. They realize that while they may be selling their homes for less than they thought, they will be buying their next home at a good discount. People are being practical, not speculative. No one is talking about flipping any more. Instead, they are looking for a well priced new home … (0 comments)
economy: 2009 - Doom & Gloom or Doom & Boom?
- 01/02/09 12:46 AM
Interesting times indeed. Interest rates are at their lowest level in over 30 years. There is a first time buyer tax credit through June 30th. Prices are down an average of 15% in Connecticut, and more so in other states. Do you see the opportunity here? It's time to get on the phones and call all those customers sitting on the fence to say, "Now is the time to buy!" We all know that our treasury is printing money freely to cover the cost of one bailout or another. This practice cheapens the currency and at some point, interest rates have to … (0 comments)
economy: Is this Bottom?
- 09/29/08 06:20 AM
Contrarian investors know to jump in when everyone else is fleeing. Right now the news couldn't be bleaker, but could this be the bottom of the real estate slump? I am awaiting Congress' vote for the $700 million bailout with the rest of you. Another big bank was scooped up at a bargain basement price last night. Looks like a lot of Fall cleaning going on in the financial markets. If Congress approves this bill, pressure on the economy should ease and money should start flowing again. That should jump start this housing market. Looking at housing in my town of Hamden, … (0 comments)
economy: This Too Shall Pass....
- 09/26/08 01:09 AM
....like a kidney stone - not without discomfort. To think this mortgage mess started as a result of too much liquidity in the market place. In the past five years, there was an abundance of money looking for an investment vehicle that would pay a much higher rate of return than those available at banks and brokerages. Brilliant minds decided to use this liquidity to create mortgages. There was a ready market of people willing to pay higher than normal rates in order to get into a hot real estate market. They figured they would refinance at some point, or sell the … (0 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 … (2 comments)
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