Monday, December 4, 2017

Don't Forget that Connecticut is a Blue State

The tax bill that was recently passed by the Senate, although work remains to be done,  would affect the value of real estate by as much as ten percent, if it doesn't get changed.  In Connecticut, and in Greater New Haven, the effect could be greater, because we are a high property tax state, and some of our local towns have high tax burdens for homeowners. 

Whether or not the intent of Congress was to punish blue states, it behooves those of us who live in one to make our voices heard.  In the way that property owners who bought in an area that gets impacted by some governmental project are usually compensated for any decrease in value, it seems as though people who bought with mortgages and property taxes that were deductible fully should be protected to some extent going forward.

What is it going to take to make that happen?  We Realtors have already been contacting our Congressional representatives, but we don't have the same impact as "real" homeowners do.  So make your voices heard!  Let Congress know that Connecticut, while it has problems it must find a will and a way to solve, will be harmed disproportionately by the bill as it stands.  This is because we have high property taxes, but also income taxes that will not be deductible, either.  As we know, anything that impacts a potential buyer's cash flow, be it mortgage rate increases, tax issues, or other circumstances, will affect what such a buyer will be willing and able to pay for the home.  We need time to address our pension and deficit issues, before we adjust to a changing tax climate.  Please contact our representatives, but get others in different places to contact their Congresspeople as well.  After all, we don't want our State's hole to be dug any deeper, nor our taxpayers to suffer more than those in other areas.  Act now!

Friday, December 1, 2017

Absorption Rates

Explanation of absorption rate: The rate at which available homes are sold in a specific real estate market during a given time period. If you look at the number for Madison you can say “If market conditions do not change and if no new listings come on the market it will take 7.0 months for the current inventory to sell at the current pace of the market. A balanced market’s absorption rate is typically between 5 - 7 months.”

Wednesday, November 22, 2017

Median Home Prices Up in September

Article is from the CT REALTORS®

In a press release to the media today, CTR reports that the single-family residential home median sales price is $250,000 which reflects a 2 percent increase from $245,000 in that same time period last year. Median indicates that half the homes sold for more and half for less. Single-family residential home sales in Connecticut decreased 0.6 percent comparing October 2017 to October 2016. The total units of homes sold were 2,919 in October 2017 and 2,936 in October 2016.

Townhouses and condominiums median sales price is $163,000 representing a 2.5 percent increase from $159,000 in that same time period in 2016. Sales in Connecticut decreased 1.3 percent comparing October 2017 to October 2016. Total units sold were 731 in October 2017 and 741 in October 2016.

Statistics released by the National Association of REALTORS® indicate total home sales nationwide (includes single-family homes, townhomes, condominiums and co-ops) decreased 0.9 percent comparing October 2017 to October 2016; and the median national home sales price is $247,000. Regionally, Northeast home sales had no change from that same time period; with a median sales price of $272,800. do with the security deposit when a tenant who was under age 62 at the start of the lease turns 62 during the time of the lease.

Friday, November 17, 2017

The Greater New Haven Market Picks Up

Where were the buyers right after Labor Day?  We're not sure, but they are out now!  Open houses are busy, multiple offers have increased, and mortgage lenders are busy.  We've learned not to try too hard to predict what's going to happen in our market area, but we can certainly talk about what is happening, and we can certainly say that it is happening now.

This doesn't mean that everything is rosy--sorry to say.  Prices have continued to go down in many places, and still aren't back to 2008 levels in most parts of the State.   There is probably a good correlation, in fact, between low prices and high activity.  Especially if  you move here from another part of the country, a lot of our inventory looks like--and is--a bargain.  So sellers shouldn't expect that more traffic will mean higher offers.

As my father often said, "There is no tomorrow in real estate".  So I can't tell you that those buyers will still be out there next spring, or even next month.  Do what you have to do to get your property sold, and move on to the next stage of your life while you can.  It's good news that we have activity at this time of year, and it's better news if sellers take advantage of that to close transactions.

Wednesday, November 8, 2017

Connecticut Rental Rates Take A Breather After A Year of Increases

Article is from Article is from CT Real Estate and Construction, click here to read the article on their website.

CONNCECTICUT: Rents in cities across Connecticut saw a monthly dip in rent, running counter to a year long trend. New Haven county rents have posted the steepest annual increases, with New Haven and Meriden seeing annual increases of 5% and 7% respectively. Connecticut’s overall annual rent increase for 2016 is only 1.3%.
October showed a different direction with rents making modest declines in Hartford, New Haven and Stamford as well as other cities across the state Only Danbury registered an increase in rents for October [1.35%].
Currently, median rents in New Haven stand at $1,080 for a one-bedroom apartment and $1,320 for a two-bedroom. Hartford is more affordable with only $820 and $1030 respectively.
Stamford remains the most expensive to rent among Connecticut cities with $1500 for a single bedroom and $1890 for a two bedroom.
New Haven and several of the cities have seen several months of modest declines but most of Connecticut have seen increases for the year. Danbury and Norwalk have both seen modest declines however.
According to cities nationwide have seen rents grow more modestly, or in some cases, even decline. But most Connecticut cities are still more affordable than most large cities across the country.
Several Connecticut cities have rents above the national average of $1,160. Nationwide, rents have grown by 2.7% over the past year compared to the 5.3% increase in New Haven, 2.7% in Waterbury, .7% in Hartford and a 1% decline in rents for the year in Stamford.
In spite of Connecticut’s increases, renters will find more reasonable prices in the state’s cities than most large cities across the country. For example, San Francisco has a median 2BR rent of $3,070, which is more than twice the price in New Haven.
Data from Apartment list is skewed toward luxury apartments and information that is available from data on private listing sites, including but not exclusively Apartment List says they are “committed to making our rent estimates the best and most accurate available. We start with reliable median rent statistics from the Census Bureau, then extrapolate them forward to the current month using a growth rate calculated from our listing data. In doing so, we use a same-unit analysis similar to Case-Shiller’s approach, comparing only units that are available across both time periods to provide an accurate picture of rent growth in cities across the country.”
Article is from CT Real Estate and Construction