Changes are in the air. In 2012, we saw a significant increase in the number of homes sold in Hamden. 408 single family homes sold in town, vs 358 homes in 2011. That's a healthy 14% increase in units sold from the prior year. This is a positive trend. During the same period, the prices of these sold homes dropped. Specifically, the sales price for an average house of 3 bedrooms, 1.5 baths and approximately 1524 square feet, dropped from $229,467 or $135.19 per square foot in 2011 to $205,000 or $129.30 per square foot in 2012. (Negative). Prices peaked in May, as they usually do, and drifted downward the rest of the year. Houses sold faster in 2012 - 58 days on the market vs 91 days in 2011 (positive). What's going on here?
Statistics are a great tool, but don't often tell the whole story of a market. Our housing market in Hamden is bifurcated- there are two markets - and they break down along the 80-20 rule. 80% of the homes sold last year were owned by individuals. Approximately 20% were owned by banks or soon to be owned by banks. Both sold well during the year. Houses in good condition in desirable neighborhoods (location, location, location) sold at or slightly above the prices of a year ago. Houses in poor condition, sold for very low prices, and dragged the statistical prices for the town downward. In Whitneyville, where my office is located, I saw nice price increases for well maintained homes in the area, some a good 10% higher than in the previous year. There were also some foreclosure sales at half the price they would have gotten, had they been occupied and in good shape. All statistics are courtesy of the Greater New Haven Association of Realtors.
What's a consumer to learn from this? Quality will sell. There are positive trends in Hamden, with the growth of the economy. We are slowly coming out of this recession. There are major employers in town tied to health and education services that continue to grow. Investors are coming in, and are buying many foreclosed properties and rehabbing them. They are also following the television inspired trend of staging their properties, as part of their marketing. The result is that they are selling the houses and making a nice profit. This trend will continue in 2013.
Since January 2, 2013, 12 houses have gone on deposit. Compare this to 0 for the same period in 2011 and 2012. There is activity in the market. The inventory is quite low now, so buyers have limited choices to choose from. It's time to buy. Interest rates won't stay low forever, and I am seeing a positive change in Hamden.
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