Connecticut Real Estate, Market Condition Blog.

Connecticut Real Estate Buying and Selling in the New Haven and Hartford County Area.

The state of the Connecticut real Estate market…. August/September 2007.

Posted by Dave Jones Realty on August 23, 2007

I thought I would touch on what is the most asked question of someone in the “Real Estate Field”. …

“How is the market?”This is a very loaded question because it depends on so many things.  Are you a Real Estate Buyer, or a Real Estate Seller? Or are you a buyer that is selling  a less expensive home and moving to a larger home?  Are you a buyer that is down sozing and selling a larger home to purchase a smaller one?  There are currently 48 Homes “available” in Prospect, Ct.  for sale.  That means they do not have a Hubbard Clause on them, they do not have a deposit, etc.  The average “Asking” price for these homes is $378,000.  There are also 11 houses on Deposit at an average price of $345,000.  From June 1st 2007 until the end of August 2007, 23 Homes have sold at an average price of $325,000.  That same period of June 1st 2006 to the end of August 2006 16 homes sold at an average of $385,000.  That is a fall of over 18%! That tells us there are far more homes available and the over saturation of the market is causing prices to fall. In Waterbury from June 1st 2006 to August 2006 a total of 202 single family Homes sold, for an average of $185,000 that same period of 2007  there were 178 single family homes that sold for an average of $172,000. A fall of around 10%. So if you are in the market to sell and “upsize”, you can actually make out pretty well.  Lets say for example you have a $150,000 Property to sell.  If you are taking a 10% loss of market price that means the property would have sold for $165,000 a year ago.  if you are buying a larger home for $350,000, the seller of that house is having a loss in value of almost $35,000.  That means if you were to buy that same house a year ago you would have had to pay $385,000.  The fact that the market fell, and you are “upsizing” you are saving $35,000 off the new house, and lost only $15,000 off your old house for a “Positive gain” of $20,000.   If however the shoe was on the other foot and the home owner was downsizing, and selling their home for $350,000 they would be taking a loss.  They would purchase their new place for $150,000 and would be taking a lose of $20,000.

So while it is a good time to buy, it is a tough time to sell.  If you are upsizing it will ease the burden a bit, but interes rates are on the rise again so…….


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