CTDirt

The Impact Of The Fannie Mae/Freddie Mac Takeover

The government has "taken over" Fannie Mae and Freddie Mac (which hold about 50% of the country's mortgages) to help provide more money to be available to lend (that is the abbreviated version!). But your important question is, "but what does it mean to me?".   The goal is to help prevent home prices from declining any further. Essentially, the government is inserting more money into the mortgage market and that will lower interest rates (already below 6% just today) and make more people eligible to borrow money which will increase demand. You still have to pay your mortgage. No one is going to get their home for free. However, if you are in danger of foreclosure, you may get an opportunity to refinance at a lower rate or to extend your mortgage payments to lower your monthly bill.

CT Housing Bubble? - First Half 2008 Report

One thing I want to do with this Connecticut real estate blog is give people real information about their local towns. Most everything we hear on the news is national and doesn’t always apply to us. Since I'm a Realtor in northern Connecticut I usually focus on those towns surrounding me (Windsor, Bloomfield, Windsor Locks, Suffield, Granby, East Granby, East Windsor, South Windsor, and Simsbury). First, a snapshot of right now of single family homes:

 

What does this mean? For example, there are 152 single family homes for sale in Windsor and the average asking price is $278,784. Also, since there are 66 properties under deposit, that indicates an absorption rate of 2.3 months. An absorption rate means that if no other houses come on the market it will take that amount of time to sell the remaining stock. An absorption rate of 2.3 months is very good whereas an absorption rate of 4.8 months like East Windsor indicates it may take you a lot longer to sell your house and you will need to be more aggressive in your pricing. Any good Realtor should be able to quickly calculate your area, street, or neighborhood’s absorption rate.

Next, let’s look at sales price comparisons between the first half of 2007 and the first half of 2008. This is the information you want!

Now you can see some interesting numbers. It appears that Suffield is the real winner with an increase of 13.6% in the average sales price. East Windsor and South Windsor homes have also seen increases. Simsbury has remained nearly constant. Bloomfield and Windsor are barely lower. However, Windsor Locks, Granby, and East Granby have seen the average sales price drop much lower.

Does this mean every house in Suffield has increased by 13.6% and every house in East Granby has decreased by 23.8%? No. Every house style, size, and location is different. Different types of homes experience increases and decrease for different reasons. For example, higher priced homes in Simsbury may have lost value but lower priced homes may have increased in value so there doesn’t appear to be a real change even when there is for some. Since we are seeing a greater interest in more moderately priced homes, that is driving their market price up while the more expensive homes are in less demand. Again, it takes a Realtor who understands the local market to identify whether a house has truly increased or decreased in its market value.

When I prepare a house for the market I run a thorough pricing analysis specific to that house so the owner can have a full understanding of it’s market value. Sometimes the news is good and sometimes it is bad. However, a good Realtor will be more interested in giving you the truth than just getting your listing must by telling you what you want to hear.

BUS13 July 10th on Windsor Green

Not many towns in Connecticut have a large town center like Windsor. The Windsor Town Hall stands in the middle of "The Green" (as it is referred to) and serves as the backdrop from music groups to a variety of festivals. This weekend will feature the local Windsor band BUS13 which is best described (by me) as a mix of rock and Americana. They aren't country since they have a harder edge to their sound but they aren't so "rock" that they just scream and you have no idea what their playing. It's good music and even my 4 year old likes to dance to it (so yes, it ranks up there with Dan Zanes to her). Please note, Windsor is also the birthplace for NRBQ (I've run into Big Al Anderson down at Bart's before).

The show starts at 7:00 and is free. There is plenty of parking around. Bring your blanket and cooler and enjoy it. Personally, I think they are much better in person than their recorded stuff. Oh, and if you need to buy or sell your house look for me. I will be the one with the dancing 4 year old!

Focus On... East Granby Homes

East Granby is a really nice small town with a population over just 5,000. It is located just east of Bradley Airport and convenient to I-91 so you can get pretty much anywhere you want. This is the perfect town for someone who travels a lot but likes to settle back somewhere a little more rural. Don't get me wrong, East Granby is not the "boonies" though! Here are some current properties on the market here. All this information comes off the Connecticut Multiple Listing System. To learn more about East Granby and search for other homes, be sure to check out http://bradhastings.com/East-Granby-CT-Real-Estate.html.

The most expensive in town... Just a mere 7 million dollars (OK, so its really on $6,950,000!). Listed by William Raveis Real Estate they have done a weak job of marketing this one! The main picture they use is of a driveway surrounded by snow (and tomorrow is July 1st). In fact, they include NO pictures of the house?!?! Supposedly it has 7,650 square feet, 5 bedrooms, 3 bathrooms, and was custom built in 1999. It is also situated on 62 acres which sure sounds nice. Assuming they are paying a 6% commission, they are looking to pay over $400,000 in Realtor fees. You would think they would get an updated photo for that kind of money! Or at least a photo of the house! I would love to show you more pictures of this one, but I can't...

The most affordable in town in located at 23 Copper Hill Road for $119,000 and is listed by Coldwell Banker. This one is going to take some serious work and attention. However, Copper Hill is a really nice area and your efforts would likely pay off. Not too many people are flipping properties right now, but this would be a prime candidate.

 

The median price of a home in East Granby right now is listed for about $350,000. Here's an example of one... This home is 2,024 square feet, has 4 bedrooms and 2 1/2 bathrooms, was built in 1991, and sits on nearly an acre. This one is listed by Alaimo and Barile for $354,000 and they have done a good job by using a lot of photos and a nice description of the property.

If you like any of these house, or want to know more about East Granby real estate, give me a call or shoot me an email. You can also visit www.SearchCTHomes.com to look up even more properties all over CT.

It Must Be Cold Today On Warren Street in Windsor

Brrrr. Although we are amidst a heat wave here in June and the thermometer says 96 degrees, apparently this home on Warren Street has been experiencing snow! As required by law, I must identify the broker as House Everything Realty Group. Make sure your broker updates your marketing photos. This old picture clearly shows this property has been on for a loooong time.

Homes For Sale in Windsor Locks CT

In Windsor Locks there are 41 homes for sale with 22 under deposit meaning there is an inventory of less than 2 months which indicates an active and healthy market.

The most expensive home in Windsor Locks, listed by Friendship Properties, is located on Meg Way and is listed for $419,900 and is only 1.5 years old in a new development. This home has 4 bedrooms, 3.5 bathrooms, and a 3 car garage. The house has 2,900 square feet and even has a solarium (I think that is just a fancy way to say "sun room"). This property has been on the market for 80 days.

The least expensive home for sale in Windsor Locks, listed by American Dreams Real Estate, now is $118,900 and located on Oak Street. This interesting home was built in 1850 and needs some work. It is 1,535 square feet and has 4 bedrooms and 2 full bathrooms. The front elevation shot posted by the broker is attrocious and really detracts from the marketing of the property (don't you just love the trash can in the foreground?). This property has been on the market for 45 days.

The home that has been on the market the longest is located on Merrigan Lane, is listed by Merrigan and LeFebvre Realty, and has been listed for 345 days. The home is 2,000 square feet and has 3 bedrooms and 2.5 bathrooms. The home was brand new in 2004 and sold for $319,900. The property was originally listed last year for $342,900 and has now been reduced to it's originally sale price of $319,900. Why no increase in value in 4 years? New homes always sell for a premium and in combination with a softening market has resulted in no increase in equity.

New Property Of The Day

This house is for sale in Windsor Locks by Prudential Connecticut Realty for $184,900. It has 4 bedrooms and 1 bathroom. This is another interesting home built in 1879 and sure to be filled with interesting details and historical significance. One great thing about buying a house in Windsor Locks is the low tax mill rate of 22.88 so the taxes on this house are only $1,675 a year. Click the image to get more details.

Homes For Sale in Windsor CT

Currently there are 146 homes for sale in Windsor with 45 under deposit which indicates a 3.25 month inventory.

The most expensive home right now it located on West Street for $1,599,000 and is listed by Coldwell Banker. This large home has over 8,000 square feet, 5 bedrooms, and 4.5 bathrooms. The nicest features include the indoor pool, huge living room, and tennis courts. Although the property is next to the Farmington River, the house does not have a full direct water view. The taxes are $18,242 a year.

The least expensive home in town is located on Seymour Street and is listed by HRC Group. Although the broker has unfortunately not posted any marketing photos, this is a picture from the Town of Windsor Assessor's Office. This property is 672 square feet with 2 bedrooms and 1 bathroom. The original price was $155,000 and is now down to $127,500 after 133 days (it may have sold sooner if the agent posted some photos!). This is also a short sale so there will be a waiting period if you put in an offer.

The property that has been on the longest is located on Elm Street, is listed by Century 21 Smith, and has now been on for 340 days with an original listing price of $270,000 and is now down to $270,000. This home was built in 1664 and is on the Nation Register. This home is 1730 square feet with 3 bedrooms and 1.5 bathrooms. This home will be a great match for the right person.

Facing Foreclosure? Do a Short Sale!

In Connecticut we are seeing some people who are having a a hard time keeping up with mortgage payments. Some have lost their jobs, are getting divorced or realize they over-bought and just can't afford the house with all the other financial obligations they face.

If you miss a couple months of payments on your mortgage, your bank will start foreclosure procedures. You can throw your hands up, walk away, and let them auction off your house. However, don't assume everything is that easy - that foreclosure will significantly impact your credit.

However, home owners have another option. They can request their banks allow them to sell their homes even if they come up short on being able to pay off the mortgage. For many, this is a far better option than having a big "Foreclosure" sign put in the yard. If sellers are considering this option, they really need to speak to an experienced real estate agent since there are some things that need to be done months in preparation to prevent more significant financial loss.

You will need to take some steps to reduce your exposure. Also, you will need to prepare a package to submit to the bank requesting to do the short sale. There are specialists out there that have helped people through this before and they invaluable in their advice and service.

If you are having trouble paying your mortgage and want to avoid the embarrassment of a foreclosure and it's impact upon your credit, consider a short sale and get more information from an experienced real estate agent (like myself!).

Real Estate Conveyance Tax Update

I spoke before the Windsor Town Council last night encouraging them to stop collecting the tax since it was supposed to be temporary. I asked for each member to address the issue but only Town Councilor Ronald Eleveld approached me to give me his views on the tax (very commendable he was willing to do that). I had already heard from Town Councilor Don Jepsen and Town Manager Souza. The Windsor Journal was there as well and hopefully they will help publicize how this tax discriminates.