Buying a Home in Central CT . . . It Hasn’t Been this Great in Years
For a while now, people have been hearing how it’s a great time to buy and the market has never been better. It is true but just how true; no one has been able to explain. People were buying homes when interest rates were in the high teens, and were very happy to do so at the time.
There was no big outcry when interest rates started to fall and homeowners with those high interest rates kept their homes and didn’t walk away or demand that the banks re-write the loans to a more favorable interest rate.
Fast forward, and while interest rates stay in a nominal range, between 5-7%, homes are sold at an alarming rate and prices escalate through the heavens causing people to over purchase, then lose their homes as their incomes diminish or evaporate.
Currently, interest rates are at a low that has not been seen in decades, and many towns here in Central CT, have seen house values drop to prices that are consistent with the values from 2002 thru 2004. Never have home values dropped at such an alarming rate in our history. When interest rates have fluctuated in the past, home values were able to maintain a modest yet steady growth.
As Central CT towns go through the re-evaluation process, there is a constant and that is that home prices are dropping with modest drops of 5-9% in some of the less populated smaller towns, to values of 15-20% in some of the larger towns. What this does mean is that a serious home buyer is in a ‘perfect place’ for buying a home.
Values may drop, but it is highly unlikely. Interest rates may fall, but economically that doesn’t seem likely, and most probably by the end of the year, an election year in fact, interest rates will start to rise.
If you are thinking of buying a Central CT home, the time is right. Inventories are still in a buyer’s favor. Sellers that have recognized their situation have out their homes into the system at a price that is consistent with market values and are there to make a deal.
If you are thinking of buying or selling a home in Central CT, let’s talk. I work to help my clients, and right now is the most opportune time.
Buying a Home in Central CT . . . It hasn’t been this Great in Years
Comments(8)