Connecticut is a far cry from California.  Statewide our home sales fell 9.31% from 2006 to 34,391 in 2007.  Yes, it may be the lowest since 1995's 34,096 however our inventory levels are low for December 2007 to now.  The kicker is the median sale price has climbed even higher the past 12 years, gaining 1.45% over 2006 to reach $280,000 in 2007, which is more than double the price from 1995.

Not everyone's home price is appreciating.  Sales in part of the state that have more expensive homes are keeping this price level up because the buyers for these homes that are selling for over $2M are of better means and can keep moving.  It doesn't mean homes are appreciating.  It just means that we are seeing a higher number of homes sell at higher price points.  Of the eight counties in Connecticut - three of the eight posted a decline.  The largest decline was New Haven County where the median sale price dipped to 2.42% to $248,726.  Fairfield County posted the largest gain of 5.84% to $566,250 www.raveis.com/localhousingdata.asp

Another factor is that the tightening of lending guidelines are keeping the first time buyer at a lower price point from buying so that number has also decreased keeping our median sale price higher. 

I was slightly annoyed yesterday when CNBC had another genius stock anal-yst say that the fact that the mortgage industry are only doing loans at 20% down will definitely bring the market down another 15% this year.  So far for 08 I have $3.2M booked in sales volume and I have not had one client put down 20%. My town of Avon currently has a median sale price is $620,000 (Greenwich is $1,895,000) www.raveis.com/localhousingdata.asp  I have had a nice mix of 10% down and seller paying closing costs and I have had a few sales with 3% down with seller paying closing costs and of course we add it into the purchase price.   Bottom line if a buyer has good credit scores (anything over 690) we can get them into a home with flexibility on the ratios.  

I was sitting at a kitchen table last night.  The sellers want a larger home to start raising a family and they bought their house 2 years ago.  They paid $265,000 for a 1600 sq ft Cape in West Hartford (Average sale price is $280,000).  I could put their house on the market now for $294,900 www.raveis.com/geena and it will probably sell for $290,000 based on sales in Dec and Jan (they bought their house as a quick sale from a friend at a discount) and they will have some money in their pocket to go out and buy their 4 bedroom house, 2 car garage possibly with Central Air for waaaayyy less than $350,000 and have an interest rate that is pretty low right now.  Another benefit is their income doesn't have to be that high since interest rates are low to qualify for their new home.  They want to move up so now is the time since they will stay in their new house for 10 years.  The market will not be like this for long.  Our inventory is low so now is the time to list before the spring market.  The golden rule... it's better to be the only one on the market instead of just one of the bunch. 

Geena - 860-983-4446 or email @ Geena@Geena.biz