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State of the Hamden market - year end 2013

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Real Estate Agent with Calcagni Real Estate, Hamden, Connecticut Connecticut REB.0750397

There was an energy to the Hamden market in the past year. This became apparent, early on. Indeed, I wrote about the influx of investors into the market and the important role they would play in the turn-around of the market from recession lows. Investors scooped up distressed properties, re-habbing them for use as rentals or to flip them at a tidy profit in a matter of months. The effect was to improve the housing stock of neighborhoods on the decline, so it's a trend I hope will continue in 2014.

While I saw more activity in the market in 2013, I was not convinced that prices in Hamden were rising at anywhere near the rate being reported in other markets. When we hear of impressive rises in prices, the statistics often include national markets, but as we know, real estate is local, and often hyper-local. Some neighborhoods will show huge gains, while others fall far behind the trend.

Over the past 12 months, there were 457 sales of single family homes in Hamden, according to the Greater New Haven Association of Realtors, from which I get my statistics. This is up 12% from the 409 single family homes sold in 2012, a welcomed increase. When I look at sales prices,  however, the numbers aren't as rosy. The trend was up, but nowhere near the double digit increases in prices enjoyed in other states. Connecticut grew, so we'll take the gains with gratitude.

Sales of homes in Hamden ranged from $40,000 for a bank owned fixer upper to $1.2 million for a mansion built in the era of grand building prior to World War II. The sales price for an "average" home with 3 BRs and 1.65 baths of 1714 square feet was $228,756 or $132.08 per square foot. This is up from last year's figure of $128.68, and not quite a 3% increase. For a statistic geek, like myself, even that 3% figure is suspect, because the "average" house this year was larger - 1714 square feet vs 1669 last year, so more house for the money. Not a big deal, but it reinforces that the price increases were not impressive. To add to this, most of the houses that sold had at least one price reduction during their listing period. Sellers were trying to increase prices, but the market wouldn't have it. I call it the "Wal-mart effect", where buyers like to see the price rollbacks, before they commit to the house. The big exception is for the buyer that needs a house now and will pay full asking price or above. This happened during the Spring market, but then largely disapppeared. The median price for Hamden in 2013 was almost identicle to the average price per square foot - $132.50.

One encouraging figure to me was the drop in bank owned and short sales in town. Last year, i reported that a full 20% of the sales fell into that catergory. In 2013, the figure dropped to 16.6%, based on my review of all the sales, and the comments put in the listing by the listing agents. It looks like about 5% of the sales were for investor owned properties, purchased and remodelled for sale. We all know those houses. They are staged to perfection and a delight to show.

I expect a strong market in the coming year, barring any unforeseen economic disruptions. We all have buyers on the sidelines, waiting to see their credit scores improve, so they can apply for a mortgage. Banks are much more accomodating than they were just a year or two ago. Inventory is low, so a good listing can be expected to sell quickly. One big glitch would be a dumping on the market of lots of bank owned properties. This would bring down the average prices further.

I wish you all a Happy, healthy and successful 2014. Let's get out there and list, then match people with their dream homes.

Show All Comments Sort:
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher
To better days ahead and prosperity for all of you in 2014! Laura
Jan 02, 2014 12:00 PM
Millie C. Legenhausen
Calcagni Real Estate, Hamden, Connecticut - Hamden, CT
CRS, GRI, CIPS, MBA, Realtor

To better days, indeed. I wish you all the best in the coming year. Millie

Jan 02, 2014 09:38 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Millie, excellent report summarizing the Hamden market in the last year. Hopefully 2014 will show better numbers.

Jan 02, 2014 10:01 PM
Rich Novacki
McCue Mortgage - Newington, CT

Hi Millie,

I can relate to your blog.  All things considered, the direction is upward.  2014 will be better than 2013.

I am a mortgage loan originator in CT and we expect more volumn in 2014.

Ric

Jan 02, 2014 11:04 PM
Millie C. Legenhausen
Calcagni Real Estate, Hamden, Connecticut - Hamden, CT
CRS, GRI, CIPS, MBA, Realtor

Michael, thank you for the comment. Our office was busy all holiday season and now in January, so I expect good numbers in terms of units sold.

 

Rich, I see you are also expecting better numbers. Best wishes for a great year. If there is mortgage money available, there will be buyers.

Jan 03, 2014 12:57 AM