Connecticut Real Estate, Market Condition Blog.

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

Archive for the ‘Market Conditions’ Category

ActiveRain Blog Posts, another place we discuss the Prospect Ct Real Estate Market

Posted by Dave Jones Realty on October 1, 2008

 

This is a link to our Activerain Blog site.  There you can find an often updated Blog about the Real Estate Market condition in Prospect, Waterbury, Cheshire area.

 


You can find great local Prospect, Connecticut real estate information on Localism.com Dave Jones Broker/REALTOR, e-PRO Smedes Realty Prospect CT. is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.

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Real Estate in Prospect Ct, Is now a good time to sell? Ask a REALTOR in 06712

Posted by Dave Jones Realty on August 6, 2008

Everybody wants to know how to properly time the Volatile Housing market to make out the best when buying or selling a home. It’s just natural. This is especially true if you’re thinking about buying in a down market where homes prices are declining. You wonder how low they will go and whether you should wait, right?   

If you sell and “buy up” simultaneously, you’ll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.  By “Buying Up” I mean purchasing a larger, more expensive house than the one you are selling.

Let me show you exactly what I mean.  If your present house is worth $300,000, but because of high inventory and the lack of qualified buyers, you must reduce your price by 15%. So, instead of receiving $300,000, you would get $255,000 and “lose” $45,000.  If you are planning to move up to a $500,000 house, which is located in the same down market, you could probably buy that house at that same 15% discount or $425,000. This would mean you had saved $75,000.  So you “lost” $45,000 on the sale of your home but you “made” $75,000 on the purchase of your new home So you are actually $30,000 ahead. 

If you are downsizing then the reverse is true.  You are taking a bigger loss on the sales price, and the amount you are gaining buy “buying down” will be smaller.

Another Huge thing to consider, the interest rates!

It is also VERY important to monitor which way interest rates are moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you far more than you would think. You might not be able to afford to buy a home at any price.

*Each .25 (1/4) point increase in your interest rate gives you $12,500 less in purchasing power

 *Each .50 (1/2) point increase in your interest rate gives you $25,000 less in purchasing power.

*Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.  

*Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.

*Each 2.5 (2 ½) point increase in your interest rate gives you $125,000 less in purchasing power.

Look at the Differences Among Purchase Prices versus Interest Rates

If you put down 20% and take a 30 year mortgage for the 80% balance, here are your principal and interest payments on the following purchase prices:

$425,000 sales price, at 8.25% interest, your payment is $2,554.

$450,000 sales price, at 7.75% interest, your payment is $2,579.

$475,000 sales price, at 7.25% interest, your payment is $2,592.

$500,000 sales price, at 6.75% interest, your payment is $2,594.

$525,000 sales price, at 6.25% interest, your payment is $2,586.

 

The payments are almost identical. However, the home you can afford to buy a 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for home prices to further decline, the actual value could be lost due to higher rates.  The best thing to do is talk to a Mortgage Company or your local bank and find out what rates you qualify for.  This will help you to make a decision that works best for you and your family. 

 

 

 

 

 

 

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Prospect Ct Real Estate market first half of 2008

Posted by Dave Jones Realty on June 16, 2008

The Real Estate market here in Prospect has felt the gas price/economy issues that much of the nation has been going through. As you can see in the info below the average list price for a home in Prospect for the first half of 2007 was $339,149 with an average selling price of $327,869. That is down nearly 8.5% for the first half of 2008. The average list price was $314,432 and the average sale price was $300,722. The closed sales also decreased from 36 in the first half of 2007 to 28 in the first half of 2008. This is a slip of 23%!

With these types of numbers it is easy to see why it is more important now than ever to price your home correctly, to limit the Days on Market (DOM) and maximize the sales price.

Prospect Ct homes for sale chart

Prospect Ct Sold properties 2008

28 Closed/Sold Listings between 1/1/2008 – 6/16/2008

Beds SqFt LP LP/SqFt SP SP/SqFt SP/LP DOM

High 7 4,200 $499,900 $246.06 $480,000 $242.31 109% 347

Low 2 960 $188,500 $103.57 $190,000 $98.81 89% 1

Average 3 1,992 $314,432 $170.32 $300,722 $164.15 96% 92

36 Closed/Sold Listings between 1/1/2007 – 6/16/2007

Beds SqFt LP LP/SqFt SP SP/SqFt SP/LP DOM

High 4 3,400 $575,000 $254.51 $569,000 $239.58 100% 287

Low 2 864 $219,900 $130.72 $207,000 $127.99 89% 5

Average 3 1,902 $339,149 $183.73 $327,869 $177.05 96% 89

David Jones, REALTOR®,e-Pro®
Smedes Realty
37 Waterbury Rd.
Prospect,Ct 06712
www.DaveJonesRealtor.com
203-758-0264 Office
203-910-2638 Cell

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Prospect Ct Real Estate First quarter 2008 compared to first quarter 2007.

Posted by Dave Jones Realty on March 15, 2008

There was a total of 28 new listings in Prospect since January 1, 2008. 

These 28 listings average $308,992 and average 1814 square feet. 

In comparison, From January 1, 2007 to February 15th, 2007 there were 34 new listings and the average listing price was $401,970.  These homes were 2,254 square feet.

        Date                                    # of listings              List Price            __Square Footage

Jan 1 2007 – Mar 15 2007                34                          $401,970               2,254

Jan 1 2007 – Mar 15 2008                28                          $308,992               1,814

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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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