Don't Let These Interest Rates Go To Waste!

One client we know is refinancing this month, at a rate of 2.34% on a jumbo mortgage. That's hard to believe, but it's important not only to believe it, but to act on it. Rates will most likely go up next year, and they typically go up seasonally as well, with this being the lowest point of the year. Another client, whose primary house we just sold, is going to fix up her second home with a line of credit at these rates. You don't have to refinance, though. We have another client who called about refinancing, and we asked if he had the home of his dreams. When he answered that he would move to the immediate shoreline, if properties in his price range were available, we encouraged him to pursue his dream now. Prices are less important, as we all know, than monthly payments, and it may make a stretch purchase into a doable one. It can also make sense to purchase a home that already has the features you may be lacking, as opposed to doing work on an existing property. Renovations are always cheaper than moving. Another client was thinking about a second home, and this is certainly a great time to acquire one. We advised him to think about a second home as a gathering place for family, and compare it to family travel. Since the latter isn't possible right now, it makes even more sense to invest in property nearby. In fact, a vacation home in Connecticut has never been so appealing, for all kinds of reasons. No testing necessary to visit there! Finally, do you want to buy another pair of leggings, novelty pajamas, or gadget over the Internet? Or would you rather spend your holiday funds on a lasting investment--your dream home? The choice is yours, and the time is now.

Still Time to Be Home for the Holidays

 Today is Veterans Day, and that marks, for us in real estate, the beginning of the rush toward the end of the calendar year.  There are about seven weeks left, and that's just enough time to buy before December 31st.  But not with too much time to spare!

As we've often posted, transactions can proceed more quickly in this season.  The holidays won't be the same this year, but that means that more people can move, because they won't be giving or attending so many parties--hopefully not any.  Days off at this juncture--and many people saved vacation days and then couldn't use them, so need to take them now--can be devoted to packing and unpacking.  Long weekend days, that used to be full of errands, brunch, gyms, and shopping, can now be used getting a house ready for inspection, or for decorating your new home.

This year in particular, buyers who have been waiting should be motivated to act now, since restrictions on activities have been increasing, not loosening.  If you are going to be in lockdown, or working/studying from home, don't you want it to be in the home you've been craving?  Get the space you need soon, so that you can enjoy it in the months ahead.  

Real estate is almost alone among industries (except, of course, for delivery services) in having a boom year.  Don't expect that you will get a bargain, even as the traditional selling season wanes.  Supply is very short--about one month in most of our New Haven/Middlesex region.  That means that you should jump on anything you see that meets your needs.  Consider not just what you think the "market price" should be, but what it's worth to you.  With all those extra hours at home, you can amortize the cost of your new home easily.  In addition, with such low interest rates, you will be able to buy more at the same monthly payment amount.

Many people sat on the sidelines for the past few weeks, mesmerized by the election.  It's over, and the year is almost over also.  It's time to find, if not your forever home, your pandemic place.  It's out there, waiting for you to make it your home for the holidays. 

Absorption Rates

 

Current Absorption Rate

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 Cheshire you can say “If market conditions do not change and if no new listings come on the market it will take 2.7 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.”



Reopening Connecticut Real Estate

We don't have to actually reopen Connecticut real estate.  Due to our protected status as an essential industry, we have been allowed to operate all along.  Although we have decided to reopen our offices slowly and carefully, with no walk-in clients for now, and limited office hours, we have kept selling throughout the pandemic period.  Our showings have lessened, there are no public open houses, and most of our activity is done remotely, but demand has been strong.

Especially in New Haven, where people who already had job offers for this summer and fall are looking, there is much more demand than supply.  Due in part to some of the neighborhoods and their open spaces and larger lots, density has not been the issue that it has been in larger cities.  Convenience and closeness are ruling the day, and we can sell whatever we can list in the parts of New Haven near Yale.  

The suburbs are also popular, especially with younger families, and buyers of second homes.  The latter group is driving up the average sales prices.  Again, we can sell what we can list.  It's hard to think about moving in the early stages of a lockdown, but people are figuring it out, and are ready to go when they can.  The mild winter also helped. Prices are strong, due to limited supply.

 Now that more restrictions are being lifted, we expect to see an added month (or two or three) added onto the spring market.  Closings can happen quickly, if everyone is motivated to do so. If you are one of the sellers who thought that no one would buy now, it's not too late to list!  

Current 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 Guilford you can say “If market conditions do not change and if no new listings come on the market it will take 5.7 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.”