[WouldLoveTo]

Originally Posted by newerabuzz

I live in Vernon

I bought a townhouse new in 1992 for $89,000. The small complex was started in 1987- with four units being built. units have two bedroom, 1.5 baths, with attached garage, Gas heat, central air, skylights, vaulted walls and ceilings. Self managed. 1088 square feet. When first built in 1987, the first 6 units sold for 114K each. In 1991-92 10 more units where built and sold- selling from 85-89K

So 6 years later the price had dropped about $25,000 per unit. Throughout the 1990s prices continued to drop- with resells going for $66K in 1996- The complex was completed in 1997 with 8 new units bringing the total to 24. Prices for these last units was around 70K. The market slowly improved just after the turn of the century- with units now selling for around $110K circa 2001.

By 2003 prices where up to 133K, peaking for a unit selling for $178K in the summer of 2006. All these units are alike. Some are end units which differ slightly. Today the 'average' price for one of these units is around $116K. So in many ways we have seen no appreciation since 1987-even though prices for that era where inflated.

Prices locally for real estate are undervalued by at least 20%. In fact housing prices in New England, but especially in Connecticut are curiously undervalued.

See Jay, I'm not the only one. Newerabuzz - I bought in 1990 just before the big crash so it took longer for me not to be underwater.

As a matter of fact, I know 2 people - no 3, because my neighbor counts - who bought from 2004-2006 who are now underwater.

I'm just happy I never lost my house. I'd never have a rental now for what I pay. (unless it was a small place in a multifamily, and I hate people so that would make me miserable)

[Mr_250]

Very two different articles about real estate in Connecticut. CTPOST Fairfield tops county in home sales - Connecticut Post says FFC is doing really well in both multi family homes and below.

Hartford area is a mixed bag. Area June home sales mixed | HartfordBusiness.com While sales are up, prices are down. Any idea why that would be?

[ctguy87]

Originally Posted by Mr_250

Very two different articles about real estate in Connecticut. CTPOST Fairfield tops county in home sales - Connecticut Post says FFC is doing really well in both multi family homes and below.

Hartford area is a mixed bag. Area June home sales mixed | HartfordBusiness.com While sales are up, prices are down. Any idea why that would be?

Common theme in both articles, even affecting Fairfield County:

Increased inventory (people are leaving)
Lower prices than a year ago (over-supply)

I do not see this changing anytime soon. Definitely a buyer's market in CT.

[JayCT]

Originally Posted by Mr_250

Very two different articles about real estate in Connecticut. CTPOST Fairfield tops county in home sales - Connecticut Post says FFC is doing really well in both multi family homes and below.

Hartford area is a mixed bag. Area June home sales mixed | HartfordBusiness.com While sales are up, prices are down. Any idea why that would be?

I read the article on Fairfield County and it confirms that homes sales in the Town of Fairfield are up. What I am not so sure of though is the average price. I am seeing significantly stronger home prices so when the articles says the average price is lower I do have to wonder.

I also find it interesting that rent prices are climbing so rapidly. This is a reflection of how tight the rental market here. ctguy87 should note this. With rents rising this much it becomes increasingly more cost effective to buy than rent. Jay

Suburban Hfd.’s rising rent tide lifts landlords’ boats | HartfordBusiness.com

[ctguy87]

Originally Posted by JayCT

I read the article on Fairfield County and it confirms that homes sales in the Town of Fairfield are up. What I am not so sure of though is the average price. I am seeing significantly stronger home prices so when the articles says the average price is lower I do have to wonder.

I also find it interesting that rent prices are climbing so rapidly. This is a reflection of how tight the rental market here. ctguy87 should note this. With rents rising this much it becomes increasingly more cost effective to buy than rent. Jay

Suburban Hfd.’s rising rent tide lifts landlords’ boats | HartfordBusiness.com

The constant rent increases do get old and tiresome. I have 2 roommates so my expenses are still low - but it is getting out of hand.

The large influx of visa workers, who come in and rent, as well as renting millennials and a lack of new supply are the culprits. I've seen my rent go from $1505 to $1628 in 2 years. 4% each time. (Again, split 3 ways, 3BR apt, so it's not SO bad personally)

[lvs2393]

Originally Posted by ctguy87

I have 2 roommates so my expenses are still low - but it is getting out of hand.

This is definitely not for everyone. I can see this as lifestyle/saving plan for a single person.

I can't imagine doing that while having a family with kids. Which essentially would lead to renting your own apartment if rent is the preferred way to go. And once you start renting the whole apartment solely for your only using your family income - paying for ownerships isn't a huge difference in monthly pay.

Otherwise it would remind me of a life back in USSR days when one apartment was shared by multiple families - Each would occupy 1 bedroom.
Thought of course US rent sharing it is not as extreme as it was back there but there are similarities.

[CT_Yank]

I feel like some comments minimize the impact the economic recession had on folks. Many, many people lost their jobs between 2008 - 2012 and it took sometimes 6-8 mos to find anything else. FT jobs were almost non-existent in financial sector so forced into short term consulting gigs. Not exactly the time to make a big investment. Heck, think of the folks who bought in north Redding or north of New Haven who planned on commuting to Stamford ( RBS, UBS, GE Cap or hedge funds) but now those positions are gone for good and they have killer commutes to NYC. I know a 100 contacts alone who paid the price for buying bw 2003-2007. Hindsight is 20-20. I just bought in Fairfield a few months back but house Sat on market for almost a year. It was grossly overpriced, like many places in FFC. Basically anyone who pays more than 2004 price is a sucker, even now. Certainly they are out there.

[Raider111]

Originally Posted by JayCT

I read the article on Fairfield County and it confirms that homes sales in the Town of Fairfield are up. What I am not so sure of though is the average price. I am seeing significantly stronger home prices so when the articles says the average price is lower I do have to wonder.

I also find it interesting that rent prices are climbing so rapidly. This is a reflection of how tight the rental market here. ctguy87 should note this. With rents rising this much it becomes increasingly more cost effective to buy than rent. Jay

Suburban Hfd.’s rising rent tide lifts landlords’ boats | HartfordBusiness.com

They should be up, there is an astounding 630 SF homes on the market ($200K-$10M) in town right now (per listingbook). Way more than even the bigger cities. Just driving around town it seems like every other house has a for sale post in the front year. My small street alone has 4 for sale right now.

[JayCT]

Originally Posted by Raider111

They should be up, there is an astounding 630 SF homes on the market ($200K-$10M) in town right now (per listingbook). Way more than even the bigger cities. Just driving around town it seems like every other house has a for sale post in the front year. My small street alone has 4 for sale right now.

I am not sure why you think that this is a lot of homes for sale. Fairfield is a large town. Greenwich which is of a similar size has about the same number of listings. I have driven down dozens of streets in town without seeing a for sale sign. Jay

[Raider111]

Originally Posted by JayCT

I am not sure why you think that this is a lot of homes for sale. Fairfield is a large town. Greenwich which is of a similar size has about the same number of listings. I have driven down dozens of streets in town without seeing a for sale sign. Jay

Point was that it has by far the most on the market in the county. Even more than the larger towns and cities. No idea why though. Greenwich has just over 300 on the market same price range (200K - 10M).
Stamford about 550.