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Commenting on the Waterbury Republican American article on home Sales...

By Dave Jones

Real Estate Broker/Owner with Dave Jones Realty, llc. 0789397

February 27, 2009 12:58 AM

The front page of the Waterbury republican talks about home sales here in Ct. dropping 35% from January 08'. Although they do notice people have a "renewed interest in the State market".

I ran my own January 08' vs. January 09' comparison for the towns my brokerage are most active in.

Prospect,Ct

Cheshire,Ct

Waterbury,Ct

Naugatuck,Ct

Wolcott,Ct

Beacon Falls,Ct

Bethany,Ct

January 2008

january 2008 CT real Estate

VS.

January 2009

Now these numbers are slightly skewed due to the fact there were 6 properties that were foreclosures that were very rough. These homes are often "Cash Only" sales seeing as though no bank will allow a mortgage on them. One actually sold for $14,000 and the other 5 were right around $30,000. I removed those 6 from the chart below and the average sales price is "Up" to $129,500. Still a far cry from the $219,900 in 2008.

January 2009 without Foreclosure

Ct area January sales results, no Forclosures

I personally feel as though the media plays a big part in this. While there is non-stop reporting of the slide in values, I think we need to look at the excellent opportunity for buyers. If someone was interested in "Buying Up" it is a great time. An example of this is if you own a home that was worth $250,000 and listed for sale now, at a 20% decrease in price due to the market, it would list for $200,000. That is a $50,000 decrease. However, if you are "Buying Up" to a $400,000 house, you can actually make out better. That house that would have been $400,000 is now also 20% lower, meaning it is now $320,000. While it appears to most sellers they are losing on the sale, they are actually gaining $30,000 on the purchase.

The problem is many people are downsizing, and the reverse happens.

I see signs that we are going to have a strong spring, and hopefully it will help get us "caught up" and "back on track"..

David J Jones
Broker/Owner, REALTOR, e-Pro
Dave Jones Realty, llc
PO Box 7363
Prospect, Ct 06712
203.758.0264 phone
203.758.3065 fax
www.DaveJonesRealty.com