ct real estate industry: CT Housing Market: Another Gigantic Difference Between 2008 and 2018
- 08/16/18 06:33 AM
Some are attempting to compare the current housing market in CT to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis. However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.
… (0 comments)
ct real estate industry: Existing Home Sales in CT Are Cooling Off This Summer
- 08/10/18 06:54 AM
Some Highlights: According to the National Association of Realtors’ latest Existing Home Sales Report, sales in June were down 2.2% from last year. Inventory of homes in CT for sale showed a modest improvement of 0.5% over last year’s figures, but still remains under the 6-month supply needed for a normal market. NAR’s Chief Economist Lawrence Yun had this to say: “There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that … (0 comments)
ct real estate industry: Americans Rank Real Estate Best Investment for 5 Years Running!
- 07/30/18 06:55 AM
Some Highlights: Real estate has outranked stocks/mutual funds, gold, savings accounts/CDs, and bonds as the best long-term investment among Americans for the last 5 years! The generations agree! Real estate is the best investment! Generation X leads the way with 37% believing in real estate as the top investment. Contact A Real Estate professional from Dave Jones Realty who can assist with any of your Real Estate needs! … (0 comments)
ct real estate industry: 4 Reasons Why We Are Not Heading Towards Another Housing Bubble
- 07/30/18 06:51 AM
With CT home prices continuing to appreciate above historic levels, some are concerned that we may be heading for another housing ‘boom & bust.’ It is important to remember, however, that today’s CT market is quite different than the bubble market of twelve years ago. Here are four key metrics that will explain why: Home Prices Mortgage Standards Foreclosure Rates Housing Affordability 1. HOME PRICES IN CT There is no doubt that home prices have reached 2006 levels. However, after more than a decade, home prices in CT should be much higher based on inflation alone. Last week, CoreLogic reported that, “The inflation-adjusted U.S. … (0 comments)
ct real estate industry: CT Housing Will Not Fall Victim to Next Economic Storm
- 07/19/18 06:31 AM
Some experts are calling for a slowdown in the economy later this year and most economists have predicted that the next recession could only be eighteen months away. The question is, what impact will a recession have on the CT housing market? Here are the opinions of several experts on the subject: Ivy Zelman in her latest “Z Report”: “While economic activity appears to have accelerated so far in 2018, some prominent economic forecasters have become more cautious about growth prospects for 2019 and 2020… All told, while solid long-term demographic underpinnings support our positive fundamental outlook for housing, in the event micro-economic headwinds … (0 comments)
ct real estate industry: Rising Interest Rates in CT Have Not Dampened Demand
- 07/16/18 07:20 AM
Since the beginning of the year, mortgage interest rates have risen over a half of a percentage point (from 3.95% to 4.52%), according to Freddie Mac. Even a small rise in interest rates can greatly impact a buyer’s monthly mortgage payment. First American recently released the results of their quarterly Real Estate Sentiment Index (RESI), in which they surveyed title and real estate agents across the country about the impact of rising rates on first-time homebuyers. Real estate professionals around CT have not noticed a slowdown in demand for housing among young buyers; nearly 93% of all first-time homebuyers last quarter were between the ages of 21-35, with … (0 comments)
ct real estate industry: Next Recession in 2020? What Will Be the Impact in CT?
- 06/28/18 06:41 AM
Economists and analysts know that the country has experienced economic growth for almost a decade. They also know that a recession can’t be too far off. A recent report by Zillow Research shed light on a survey conducted by Pulsenomics in which they asked economists, investment strategists and market analysts how they felt about the current housing market. That report revealed the possible timing of the next recession: “Experts largely expect the next recession to begin in 2020.” That timing concurs with a recent survey of economists by the Wall Street Journal: “The economic expansion that began in mid-2009 and already ranks as the second-longest in American history most likely … (1 comments)
ct real estate industry: What's the Median Home Value in CT?
- 06/27/18 06:44 AM
If you’ve entered the CT real estate market as a buyer or a seller, you’ve inevitably heard the mantra “location, location, location” in reference to identical homes increasing or decreasing in value based on where they’re located. In today’s housing market where home prices are appreciating quickly, it’s important to know that not every home appreciates at the same rate. The map below demonstrates that point on a state-by-state basis using data from the National Association of Realtors.
Demand often dictates value, even for houses in the same area of the country! High demand for starter and trade-up homes have driven prices up in these … (0 comments)
ct real estate industry: CT Home Prices Will Increase
- 03/30/18 09:09 AM
Some believe that the combined effects of the new tax code and rising mortgage rates will have an adverse impact on CT residential real estate prices in 2018. However, the clear majority of recently surveyed housing experts believe that CT home values will continue to rise this year. What is the Home Price Expectation Survey? Each quarter, Pulsenomics surveys a nationwide panel of economists, real estate experts and investment & market strategists. Those surveyed include experts such as: Daniel Bachman, Senior Manager, U.S. Economics at Deloitte Services, LP Kathy Bostjancic, Head of U.S. Macro Investors Service at Oxford Economics David Downs, Real Estate Finance Professor at VCU Edward Pinto, Resident Fellow at American Enterprise Institute Albert Saiz, Director at MIT Center … (0 comments)
ct real estate industry: Moving is MORE Affordable Now in CT Than Almost Over 40 Years
- 03/16/18 08:15 AM
If you are considering selling your current home in CT, to either move up to a larger home or into a home in an area that better suits your current family needs, great news was just revealed. Last week, Trulia posted a blog, Not Your Father’s Housing Market, which examined home affordability over the last 40+ years (1975-2016). Their research revealed that: “Nationally, homes are just about the most affordable they’ve been in the last 40 years… the median household could afford a home 1.5 times more expensive than the median home price. In 1980, the median household could only afford about 3/4 of the … (0 comments)
ct real estate industry: A New CT Housing Bubble Forming... Not Before 2024!
- 03/12/18 08:40 AM
A recent report by CoreLogic revealed that U.S. home values appreciated by more than 37% over the last five years. Some are concerned that this is evidence we may be on the verge of another housing “boom & bust” like the one we experienced from 2006-2008. Recently, several housing experts weighed in on the subject to alleviate these fears. Sean Becketti, Freddie Mac Chief Economist “The evidence indicates there currently is no house price bubble in the U.S., despite the rapid increase of house prices over the last five years.” Edward Golding, a Senior Fellow at the Urban Institute’s Housing Finance Policy Center “There is not likely to be … (0 comments)
ct real estate industry: CT Home Prices: The Difference 5 Years Makes
- 03/09/18 08:05 AM
The economists at CoreLogic recently released a special report entitled, Evaluating the Housing Market Since the Great Recession. The goal of the report was to look at economic recovery since the Great Recession of December 2007 through June 2009. One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from December 2012 to December 2017 to show how prices over the last five years have fared. Frank Nothaft, Chief Economist at CoreLogic, commented on the importance of breaking out the data by state, “Homeowners in the United States experienced a run-up in prices from … (0 comments)
ct real estate industry: CT Housing Market Expected to "Spring Forward" This Year
- 03/05/18 09:24 AM
Just like our clocks this weekend in the majority of the country, the CT housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market. Many potential sellers in CT believe that waiting until Spring is in their best interest, and traditionally they would have been right. Ct buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions. That hasn’t happened this year. Demand for housing has remained strong … (0 comments)
ct real estate industry: Are CT Home Values Over-Inflated?
- 03/05/18 07:24 AM
Last week, the National Association of Realtors (NAR) released their most recent Existing Home Sales Report. According to the report: “The median existing-home price for all housing types in January was $240,500, up 5.8 percent from January 2017 ($227,300). January’s price increase marks the 71st straight month of year-over-year gains.” Seventy-one consecutive months of price increases may have some concerned that current home values may be overinflated. However, at the same time, Zillow issued a press release which revealed: “If the housing bubble and bust had not happened, and home values had instead appreciated at a steady pace, the median home value would be higher than its current value.” Here … (0 comments)
ct real estate industry: Calm Down! The CT Real Estate Market is NOT Falling Apart
- 02/21/18 08:46 AM
Does the concern about the current CT housing market have merit? Financial advisors have been warning us for months that the stock market was ripe for a “correction.” Experts have been questioning the value of alternative currencies for over a year. In contrast, here are the opinions of three major players in the residential housing market: Ralph DeFranco, Chief Economist, Arch Capital Services Inc. “It’s premature to worry about a housing bubble. The typical warning signs – excessive debt levels, poor quality loans, exponentially increasing home prices, rising vacancy rates and/or poor affordability compared to the past, and a high number of internet … (1 comments)
ct real estate industry: Low Inventory Pushes CT Home Prices Higher
- 02/19/18 09:16 AM
According to CoreLogic’s latest Home Price Index, prices appreciated by 6.9% year-over-year from December 2016 to December 2017 on a national level. This marks the fifth month in a row with at least a 6.9% increase. Dr. Frank Nothaft, Chief Economist for CoreLogic, gave insight into the reason behind the large appreciation, “The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation … (0 comments)
A story in the Wall Street Journal gave these new homeownership numbers some context: “The annual increase marks a crucial turning point because it comes after the federal government reined in bubble-era policies that encouraged banks to ease lending standards to boost homeownership. This time, what’s driving the market is a shift in favor of owning rather than renting. ‘This is market, market and market…There’s … (0 comments)
ct real estate industry: Homeownership is an Important Part of the American Dream in CT!!
- 01/15/18 07:35 AM
CT residents continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that: “Owning a home remains a core element of the American Dream.” When asked “How important a part of the American dream is owning a home?” 18% of those surveyed said it was the most important part 53% of those surveyed said it was very important 22% of those surveyed said it was somewhat important CT Homeownership and Financial Stability The survey also revealed that 81% of Americans believe that owning a home leads to a family being more financially stable. This feeling was reiterated by Zillow Senior Economist Aaron … (0 comments)
ct real estate industry: The Impact of Tight Inventory on the CT Housing Market
- 01/09/18 07:18 AM
The CT housing crisis is finally in the rearview mirror as the real estate market moves down the road to a complete recovery. CT home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018. However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While CT buyer demand looks like it will remain strong throughout the winter, supply is not keeping up. Here are the thoughts of a few industry … (1 comments)
ct real estate industry: Time on the CT Market Drops To New Low in 2017
- 01/09/18 06:29 AM
The median amount of time a home spent on the CT market hit an all-time low of only three weeks in 2017. Strong CT buyer demand, a good economy, and a low inventory of new and existing homes for sale created the perfect storm to accelerate the time between listing and signing a contract. The time needed to sell a home has dropped substantially since its highest mark of 11 weeks in 2012. The chart below shows the median weeks on the market from 1987 to today.
Bottom Line If you are a CT homeowner who is debating whether or … (0 comments)
For all your New Haven County Real Estate Needs. Dave Jones Realty in Prospect CT discusses the latest happenings and topics in and around the Prospect, Watertown, Naugatuck, Cheshire, Waterbury, Wolcott, Southbury, Middlebury and surrounding towns.
Connecticut area Real Estate listings and market updates. Our Team of Realtors is actively listing and selling homes in your area.
Some are attempting to compare the current housing market in CT to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.
;)
;)
;)
