ct real estate market: 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.
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ct real estate market: 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 market: Supply & Demand Will Determine Future Home Values in CT
- 08/09/18 08:08 AM
Will home values in CT continue to appreciate throughout 2018? The answer is simple: YES! – as long as there are more purchasers in the market than there are available homes for them to buy. This is known as the theory of “supply and demand,” which is defined as: “The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.” When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply … (0 comments)
ct real estate market: 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 market: Lack of Listings Slowing Down the CT Market
- 07/24/18 07:19 AM
As the CT real estate market continues to move down the road to a complete recovery, we see home values and home sales increasing while distressed sales (foreclosures and short sales) continue to fall to their lowest points in years. There is no doubt that the CT housing market will continue to strengthen throughout 2018. However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory! Here’s what a few industry experts have to say about the current inventory crisis: Lawrence Yun, Chief Economist for the National Association of Realtors “Inventory coming onto the market during … (0 comments)
ct real estate market: 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 market: 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 market: 3 Issues Facing Today's Real Estate Market!
- 06/20/18 08:58 AM
Last week, the National Association of Real Estate Editors (NAREE) held their 52nd Annual Journalism Conference in Las Vegas, NV. Among the many highly anticipated sessions was one called “Top Ten Issues Affecting Real Estate™,” given by Joseph Nahas, Jr., Chair of the Counselors of Real Estate & Senior Vice President of Equus Capital Partners. The Counselors of Real Estate (CRE) “is an international organization of high profile property professionals which include principals of prominent real estate, financial, legal, and accounting firms as well as recognized leaders of government and academia.” Their annual “top 10” list spans any and all issues that could have an impact on the real estate market. … (0 comments)
ct real estate market: Ct Homeownership: "A Man is Not a Complete Man, Unless He Owns A Home"
- 05/16/18 08:30 AM
The famous quote by Walt Whitman, “A man is not a whole and complete man, unless he owns a house and the ground it stands on,” can be used to describe CT homeownership today. The Census revealed that the percentage of homeowners has been steadily climbing back up since hitting a 50-year low in 2016. The homeownership rate in the first quarter of 2018 was 64.2%, higher than last year’s 63.6%.
Chief Economist, Dr. Ralph McLaughlin, in his VUE Blog gave these new homeownership numbers some context: “The trend is clear: the homeownership rate has been ticking up for five consecutive quarters, and the number of … (0 comments)
ct real estate market: 5 Ways Tax Reform Has Impacted the 2018 Ct Housing Market
- 05/16/18 08:10 AM
Starting late last year, some predicted that the 2018 tax changes would cripple the CT housing market. Headlines warned of the potential for double-digit price depreciation and suggested that buyer demand could drop like a rock. There was even sentiment that homeownership could lose its coveted status as a major component of the American Dream. Now that the first quarter numbers are in, we can begin to decipher the actual that impact tax reform has had on the CT real estate market. 1. Has tax reform killed off home buyer demand? The answer is “NO.” According to the Showing Time Index which “tracks the average … (0 comments)
ct real estate market: 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 market: 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 market: 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 market: 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 market: 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 market: 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)
ct real estate market: Bidding Wars Abound in CT... How Long Will They Continue?
- 02/01/18 08:07 AM
Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase. In many areas of the country, the supply of CT homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner. CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price. “The share selling above list price was almost … (1 comments)
ct real estate market: 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 market: There's More to a Bubble Than Rising CT Home Prices
- 12/29/17 08:38 AM
What truly causes a housing bubble and the inevitable crash? For the best explanation, let’s go to a person who correctly called the last housing bubble – a year before it happened. “A bubble requires both overvaluation based on fundamentals and speculation. It is natural to focus on an asset’s fundamental value, but the real key for detecting a bubble is speculation…Speculation tends to chase appreciating assets, and then speculation begets more speculation, until finally, for some reason that will become obvious to all in hindsight, the ‘bubble’ bursts. I have taken to calling the housing market a ‘bubble’.” – Bill McBride … (0 comments)
ct real estate market: Existing CT Home Sales Reach Highest Annual Pace in 11 Years!
- 12/22/17 07:20 AM
Some Highlights: Existing CT home sales are currently at an annual pace of 5.81 million, the highest pace since December 2006. The inventory of existing homes for sale in CT has dropped year-over-year for the last 30 consecutive months and is now at a 3.4-month supply. NAR’s Chief Economist Lawrence Yun had this to say: “Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end.” Contact a Real Estate professional from Dave Jones Realty who can assist with any of your Real Estate needs! … (0 comments)
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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.
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