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 end of last year. This makes sense, as bank owned properties are priced lower and often need lots of expensive work to shine them up again. The average days on market was 100 days. Surprisingly, the ratio of list price to selling price was 97.55%. Properties priced right sold close to asking. All statistics are courtesy of the Greater New Haven Association of Realtors.
These stats tell us a few things. 1) Bank properties are selling, which is good news for the town and the local economy. 2) Lower priced homes are selling, which reflects the effects of the first time homebuyer incentives. 3) Investors are back in the market buying homes to rehab and flip. 4) Sellers are still waiting on the sidelines, waiting for confirmation that the economy and therefore real estate have stabilized. Those that have to sell, often have to cut prices several times before they reach that sweet spot that will appeal to a buyer.
The momentum seems to be building. Today there are 82 homes on deposit or show status in town. As these close, we will have a clearer picture of our local real estate market. The issue is going to be what happens after April 30th. Will the economy show enough signs of stabilization to continue the forward motion, or will it go back into hibernation, awaiting the next government incentives? Whatever the outcome, the reality is that real estate has never been more affordable. This is a window of opportunity.
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