Ed's Chesprocott Region Blog: The Connecticut Housing Market, Looking Through a Foggy Window

The Connecticut Housing Market, Looking Through a Foggy Window

The Connecticut Housing Market, Looking Through a Foggy Window

While the majority of our Country has benefited from the housing recovery and the general economy as well, Connecticut still finds itself lagging. While we take pride in having been home to many corporate businesses, it is also true that the exodus of jobs over a 20 year period has left voids in the local economies of many of the towns in the state.

The Connecticut Housing Market, Looking Through a Foggy Window

Realtor.com has released it's projections for the top 100 housing markets in the country. A quick glance shows only 2 areas in Connecticut as having a position: The Hartford, Capital region at #98 and at #99, the Stamford-Norwalk region, which is lower Fairfield County and recognized as one of the richest per capita counties in the country.

Meanwhile, for the rest of the state the rate of growth is far less obvious.

My little corner of the real estate landscape is the Greater Waterbury Connecticut region. This was once recognized as one of the strongest manufacturing centers of the country at a time when durable goods were produced in the country and before the introduction of plastics and other resin composites.

The core area of Waterbury is surrounded by the towns that were home to the founders of these businesses and they relied on the central district for the labor to work in their plants.

The towns in this region are Cheshire, Middlebury, Naugatuck, Prospect, Waterbury, Watertown, and Wolcott. When business was thriving,  before the housing bust, Naugatuck and Waterbury were the towns for first time buyers.  The move-up buyer went into the surrounding towns for larger more spacious homes.

To know where we may be going it is important to know where we have been. In the selected towns, the total sales of residential homes in 2015 was 1895 units with an average sales value of $187,283.  Of the homes sold, 28% were short sales and foreclosures.

For 2016, the number of homes sold was 1933, or a 1% increase in units sold over the previous year. The average value of units sold was $192,230 and this represented a 1% increase in value as well.  The number of short sales and foreclosures dropped to 24% of total units sold, but still high for such a small region.

The National figures are indicating there will be a fall back in real estate sales for the new year, only for the slight rise in interest rates and the uncertainty of the position of the new administration coming into the scene in Mid January.

The same will hold in our state as this week a new General Assembly will convene and the Republican gain of the past election will certainly neutralize the incumbent Democrats for the first time in years, with a highly unpopular governor.

That is not to state that all is dark within the region. Many home owners are still looking to move out of their initial home purchases and take the next step into  larger homes. The approach they take with their existing homes when getting prepared for market and the financial status they enjoy with their mortgage will be the rudder that directs their home purchase.

The Connecticut Housing Market, Looking Through a Foggy WindowThere are many home options available to qualified buyers.  This puts a responsibility on the sellers to recognize their true intentions and if it is to sell their home, then they need to listen carefully to the information provided by their agent.

We can only hope that for the new year we at least meet the modest growth in sales we have experienced over the past 2 years.

 

 

For sellers it is essential to have a sales price on your home consistent with the most recent activity. I can help with an up to date free market evaluation to assist you in determining the best sales price for your home and discuss the marketing direction that would work best.

 

 The Connecticut Housing Market, Looking Through a Foggy Window

 

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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

Ed Silva  RE/MAX Professionals,  www.edwardsilva.com  203-206-0754

Comment balloon 17 commentsEd Silva • January 03 2017 03:29PM

Comments

Hi Ed

I hope things will improve overall in your market in 2017. Given the issues it's even more important for buyers and sellers to have someone such as yourelf to guide them through the purchase and sale process and help them understand the local market conditions.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) almost 2 years ago

Hi Ed Silva - I really appreciate your candor on this subject.  I think it will bode well for you with current and future clients.  

 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) almost 2 years ago

Very good information about your real estate market.  Sounds like it is steady although not crazy like some markets.  That doesn't sound bad to me.

Posted by Belinda Spillman, Colorado Living! (Aspen Lane Real Estate Colorful Colorado) almost 2 years ago

Ed Silva - wow! What a detailed analysis of your area. Very well written post.

I am surprised that even 2015 and 2016 saw almost ¼ of the inventory sold as the short sale.

No wonder only two areas of Connecticut show up in Realtor.com radar.

Thanks for your participation, Ed.

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) almost 2 years ago

Ed good to see that we have stopped losing ground, but it is about time for us to see the recovery that many parts of the country have been enjoying.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 2 years ago

Good morning Ed Silva ,

Very well written post and a very detailed overlook including the past to get a better perspective of where you are headed. Hopefully you will be on track for improvement and 2017 will be a year of recovery for you.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) almost 2 years ago

Ed Silva A foggy past indeed .Hoping 2017 is a year an improvement . Buyers and sellers would be wise to call you and make use of your experience to guide them through the buying or selling process .

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) almost 2 years ago

Hello Ed Silva,  Miss foggy, maybe once in a while since we do not get it like back east.  I need to see where Denver is on that report.  Make it a great day!

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) almost 2 years ago

This is a really solid 'What's our local market doing' post! Great stuff here Ed.

Posted by Bob Stewart, ActiveRain (ActiveRain) almost 2 years ago

Ed a very good discussion of your local housing market and why it is where it is right now and a little reading of the crystal ball as well.

Posted by Nick & Trudy Vandekar, 610-203-4543, Tredyffrin Easttown Realtors, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) almost 2 years ago

Great info Ed, and a wonderful picture of how local real estate is.  I've heard that things start west and move east, so if that's the case, appreciation and a greater number of sales should be on the way.

Since I work in many markets around the country, I notice the tremendous differences myself-  for example, in many areas here in SoCal prices are through the roof and inventory is tremendously low --- whereas in some areas of Delaware I work a lot, things are far more steady and a 'normal' market.

Posted by John Meussner, #MortgageMadeEasy Walnut Creek, CA 484-680-4852 (Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA,) almost 2 years ago

No fluff, just the facts.  This is the information Realtors AND consumers want!!  You've nailed it.

 

Posted by Lisa Bieri, Passion for RESULTS. Concern for PEOPLE. (Door County Realty Inc.) almost 2 years ago

Hi Ed - only the lower Fairfield County is among the "richest"; our Southwest sector is not fairing well. Good write-up minus the political stuff.

Posted by Olga Simoncelli, CONSULTANT, Real Estate Services & Risk Management (Veritas Prime, LLC dba Veritas Prime Real Estate) almost 2 years ago

I do like your insight Ed Silva. Here in NH i am seeing a strong and positive response to the politics of late. In October and early November sales came to a halt as everyone waited with baited breathe. After the election we had an explosion of new sales, new buyers and more listings. A new found consumer confidence. The tic upward in interest rates did boost those on the fence and sales have been strong all the way through Christmas and now New Years.  Funny, NH just elected a new GOP governor, house and senate and business leaders are applauding. 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) almost 2 years ago

Hi Ed - you really covered everything in a thorough market report.  I hope 2017 sees improvement in Connecticut.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) almost 2 years ago

Ed what an awesome Title to a sad situation, I guess Case Schiller forgot to ask you for your input of how the market is doing.... having lived in Waterbury CT I remember when Century Brass Closed and almost single handedly killed the Waterbury economy... Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) almost 2 years ago

We can safely predict that people will always buy and sell real estate:) 

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) almost 2 years ago

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