Where In The Bubble Are You?

Are you trying to decide whether you should buy or sell? It’s a decent market for both if you put yourself in a position to have the advantage.

For Sellers
A strong economy and relatively low mortgage rates normally lead to an increase in real estate sale but that is not the case as we near the end of 2006. What does this mean to sellers? The market is not cooling because of a lack of buyers the market is cooling because of high prices. This news does not mean you need to “fire sale” your home. It does mean that if you want to sell your house in this market you need to improve the condition of your home or you need to adjust your price. According to the Manager of Regional Economics at Fairfield County’s Consolidated Multiple Listing Service, “The best properties are moved at the higher prices while the rest just sit.” The most serious buyers will look at your home the first two weeks it’s on the market. Although there are one-million more homes on the market now nationally than this time last year, many of them are unprepared for sale and overpriced. Sell your home for the more money in the least amount of time. Pay attention to the details and give yourself the distinctive advantage by having your home properly prepared and priced for this market.

For Buyers
There is no better time to buy than now. Mortgage interest rates remain near a 40-year low while the inventory of homes is on the rise. How does this benefit buyers? Buyers have the benefit of time to search for their new home. Time doesn’t mean you need to look at every house on the market; it means that you have the chance to see a variety of homes that meet your search criteria. From there you can make an educated decision about how much to offer when you find your dream home. If you are in the market to buy a new home don’t wait for prices to further decrease – they might not. Like all markets this one won’t last. Take advantage of the market now, find the home of your dreams and make an educated offer before interest rates rise and inventory falls.


What’s Hot, What’s Not….
This month’s topic… Curb Appeal. First impressions are the only impressions. It sounds simple but statistics show that sellers have approximately 15 seconds to make an impression from the curb. It’s the overlooked details that will cost time (days on market) and money (final sale price). Create interest from the street and you are guaranteed to entice buyers in to see the rest of the house.

What’s Hot…
1. Every home looks better with a new topcoat. Yes, a new topcoat for your driveway is the perfect way to show buyers attention to detail. It is a simple and inexpensive approach to invite buyers in.
2. Bring in the New Year with lights. Updating the lights on the outside of your home is a perfect way to “brighten” curb appeal. A light at the walk or new lights at your door modernize the outside of a home with minimal investment.
3. Green is “in” this year....and every year. Even during the winter months it is important to have healthy landscaping. Although things may not be green, be sure bushes and trees are trimmed away from windows and doorways. If you want a touch of green during the drab winter months add planters with small trees to your doorstep.

What’s Not…
1. Is your mailbox holding on for dear life? Sounds silly, but often the first thing we come across when approaching a property is the mailbox. One that is rusty or damaged can scream “this place needs work!”
2. Do your trash cans have a great view of the street? If they do, then the buyers driving by have a great view of them. Unless it’s trash pick-up day, keep them out of sight. No one gets a warm homey feeling from trash cans.
3. Is your welcome sign saying “Go Away”? No, you don’t really need a sign that says “Welcome” on it, but your front entrance better be saying it for you. Outdated doors with pitted hardware and peeling paint, front porches with damaged steps, rusted handrails, and worn out doormats disappoint and discourage a buyer before he even steps inside.

SIZING UP THE NEIGHBORHOOD
The average sale price of a home in Fairfield County for the 3rd quarter of 2006 rose by 2% over the 2nd quarter. Approximately 1000 fewer homes were on the market though and the average number of days on the market increased from 80 to 85 over the previous quarter. New construction was down approximately 43%.

How did your town do?
Easton: Avg. Price (Q3) $862,600, Price Change (1 year) -6.32%, Homes sold (Q3) 22, % Change in # of Homes Sold (1 year) -21.43%, Avg. Days On Market 123, % of Asking Price to Sold Price 95.9%

Fairfield
06824: Avg. Price (Q3) $971,700, Price Change (1 year) 9.64%, Homes sold (Q3) 106, % Change in # of Homes Sold (1 year) -32.91%, Avg. Days on Market 75, % of Asking Price to Sold Price 96.4%

06825: Avg. Price (Q3) $516,300, Price Change (1 year) -5.87%, Homes sold (Q3) 57, % Change in # of Homes Sold (1 year) -37.36%, Avg. Days on Market 79, % of Asking Price to Sold Price 96.7%

Monroe: Avg. Price (Q3) $560,200, Price Change (1 year) 8.33%, Homes sold (Q3) 48, % Change in # of Homes Sold (1 year) -31.43%, Avg. Days On Market 81, % of Asking Price to Sold Price 97.2%

Shelton: Avg. Price (Q3) $456,700, Price Change (1 year) -.65%, Homes sold (Q3) 110, % Change in # of Homes Sold (1 year) -17.91%, Avg. Days On Market 83, % of Asking Price to Sold Price 96.9%

Trumbull: Avg. Price (Q3) $523,900, Price Change (1 year) -4.14%, Homes sold (Q3) 99, % Change in # of Homes Sold (1 year) -38.13%, Avg. Days On Market 80, % of Asking Price to Sold Price 97.3%

The strong price appreciation over the last 5 years in this area has created lots of equity for homeowners. For example if you bought your home 5 years ago and sold it at the current median price of $661,211, you would have realized an appreciation of $237,646, or a gain of 56.1% from your purchase. Even if prices were to fall 5% to $628,150, then the equity gain would still be $204,586, or an appreciation of 48.3% on your investment.

Check us out next month for Q4 statistics, how 2006 was overall, and what’s ahead in 2007!