[saharris]

OK, it is January 2008 and we are considering moving to or near Storrs from Atlanta. With all of the bad news about the housing market in the U.S., what is the market like for buyers in this part of CT? For example, if we were looking in the $250,000-$300,000 price range, what kind of offer would we make? What percent below the asking price are most houses in this range going for in the Tolland County area? Thanks!!!

[skytrekker]

saharris

right now in eastern Connecticut properties will sell around 10-15% below asking price.
The market has slowed dramatically in recent months, as sales have dropped off a cliff.

[Rich Lee]

Number of units sold during 2007 is down about 12 percent. Of course, there are towns in Connecticut that had very change from 2006 and others that dropped significantly.

Some analysts predict declines in 2008 to be similar at 10 percent.

[JayCT]

This morning's Hartford Courant has an article on the housing market here in Connecticut and it was interesting to note that overall housing prices increased in the state in November. Though sales were down, prices were up in Fairfield, Hartford, Litchfield, Tolland and New London counties and down in Middlesex, New Haven and Windham counties. Jay

[flyingdaggers]

from reading the two posts seems prices in eastern CT have dropped while those in western have held up. anyone willing to share stories?

[JViello]

Originally Posted by flyingdaggers

from reading the two posts seems prices in eastern CT have dropped while those in western have held up. anyone willing to share stories?

I don't think you can split CT into East and West. To much variation.

East of Hartford such as Tolland, or Vernon is different than say Norwich or New London. Different Markets.

[skytrekker]

From the Hartford Courant January 8th

Home sales in Connecticut continue to be down, posting a double-digit percentage decline for the third straight month, according to new housing sales data released today.

The Connecticut housing market continued to show the contrary trend of the median sales price rising even as the number of home sales fell. The statewide median price of a single-family home rose 2 percent in November to $268,500 compared to $263,250 in November 2006 - driven by a 6 percent price increase in Fairfield County, The Warren Group reported.

Sales of single-family homes declined 21 percent to 2,242 in November compared to 2,830 for the same month in 2006, according to a report by The Warren Group, which tracks housing trends in New England. The last time November sales were at this level was 1992.


draw your own conclusions. If sales fall, and inventory rise- the laws of economics says prices will fall. Those price rises may be short lived- the national economy is probably now in a recession- and housing prices in CT where the last to rise in the current time frame- and will be the last to fall.

[flyingdaggers]

Originally Posted by skytrekker

From the Hartford Courant January 8th

Home sales in Connecticut continue to be down, posting a double-digit percentage decline for the third straight month, according to new housing sales data released today.

The Connecticut housing market continued to show the contrary trend of the median sales price rising even as the number of home sales fell. The statewide median price of a single-family home rose 2 percent in November to $268,500 compared to $263,250 in November 2006 - driven by a 6 percent price increase in Fairfield County, The Warren Group reported.

Sales of single-family homes declined 21 percent to 2,242 in November compared to 2,830 for the same month in 2006, according to a report by The Warren Group, which tracks housing trends in New England. The last time November sales were at this level was 1992.


draw your own conclusions. If sales fall, and inventory rise- the laws of economics says prices will fall. Those price rises may be short lived- the national economy is probably now in a recession- and housing prices in CT where the last to rise in the current time frame- and will be the last to fall.

all saying we should wait out.... sigh...

[JayCT]

Originally Posted by flyingdaggers

all saying we should wait out.... sigh...

I don't know if I would "wait it out", otherwise you may never buy. There is no perfect time to and always some reason not to buy. If you wait for a couple of years for the market to improve, interest rates could be higher. Experts agree that trying to time the housing market is crazy as is trying to time the stock market. The best time to get in is when you can afford to get in and hold on to your property for a number of years. Over time the housing market will improve. I have seen this advice in numerous financial web sites like CNN-Money, Forbes, Bloombergs, etc., so it not just me. If you are ready to buy and plan to stay in the home for several years, then go for it. JMHO Jay

[skytrekker]

Jay

just a few notes on your above post;all the aforementioned economic sites/publications are mainstream media- and always present a 'bullish' front; which sadly to say from the get go a few years back pooh poohed any thought of a 'housing bubble', they said as did many mainstream economists based on 'solid fundamentals'.

I think the housing blogs, as well as more honest economists like Stephen Roach of Morgan Stanley, David Rosenberg of Merrill Lynch and Ian Shepardson of High Frequency Economics in 2005 predicted an asset and credit bubble in housing. Housing prices rose too far without supportive income growth.

I do not know if you are familiar with Robert Shiller of Yale- and seen his graphs on housing- I prefer his readings to the mainstream media- and Lawrence Yun/ and David Lereah of the NAR- whose predictions have been basically wrong for the last 3 years.

I would agree if you plan to stay in a location 10 years- buying now is ok- if you low ball an offer 10-15% below the asking price. The housing downtown that was predicted to moderate last year by former Fed Chief Alan Greenspan, the new Fed Chief Ben Bernanke and the Sec. of Treasury has become worse. And believe me-know one wants to catch a falling knife.