We had our Winter Expo at the Mohegan Sun Convention Center in Uncasville, Connecticut.
Jeff Haynes reports that First Time Buyers and Condo buyers along with refi's are the key markets for us in 2007.
We all know the NAR reports about the housing drop comparing to 2005 including new construction.
The markets that are showing signs of growth in our state are the Condo market which was reported as unbelievably strong according to Joseph J. Ferraro, Jr., Treasurer of CTAMB. The baby-boomers are still downsizing and finding it attractive to move into a condo because of low/no maintenance. They have paid off their houses and are able to sell their houses right away. That is so key that factor for me in my area. I have so many relocation listings that bought 2 and 3 years ago and they are pricing them at prices that are above my pricing proposal. They sit on the market for three to six months with the seller thinking that the "emotional" buyer is just going to fall in love with their house and be willing to pay 10% more than what their buyer representative has told to pay for the house basing their numbers that match mine on the sales for the last two to three months. Their buy-outs are putting them in shock so they wait and wait and wait.
The First Time Buyer market is still attractive for one main reason,the prices are still coming down but not their incomes.
Interesting little factor that The Warren Group came up with is that the loan size is getting smaller in this state because of what was just stated. The average mortgage size fell 10.31% to $273,052 compared to $304,455 in 2005.
Another huge factor for first time home buyers is now the new FEDERAL law which was enacted in January makes PMI 100% tax deductible for households with adjusted gross icome of $100,000 or less. They can also get it on refi's as well.
Refinancing in this state will also be strong this year because people are going to refi their ARMS to fixed. In 2006 40% of all 2006 mortgages had ARMS. That is pretty huge for the forecast for 2007 for the mortgage people.
The mortgage companies from all over the country feel that Connecticut is going to be a strong market for 2007 even New Construction because we are not like the South and the Western US where they are over-supplied.
A Nice Healthy report for Connecticut for 2007.
Cheers!
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