Be Confident. We are
At Coldwell Banker Realty 2000 we're well prepared to weather today's turbulent economic conditions ... and to help our customers do the same. When you choose Coldwell Banker you can be confident you're doing business with a partner who'll help you manage costs for years to come.
What happened to Naugatuck home values during 2011? You may have guessed it but home values across Connecticut continued to decline during 2011.
There is some good news - activity seems to be improving and I hope to give you encouraging 1st quarter results for 2012. In the meantime, here are some facts gathered from the Connecticut MLS.
There were 196 single family homes sold Naugatuck during 2011 at the average sales price $177,796. The number of closings during 2010 was 197 with an average sales price of $186,753. That is a continued decline of 4.8% in value. Thankfully, the number of people purchasing homes remained consistent which is an improvement from the prior years.
The peak of the market in Naugatuck was 2006 with 368 homes sold and an average sales price of $260,077 - that was a market adjustment of 32% in home value and 48% reduction in number of homes selling. It's not the end of the world! Our values are in the range of 2001-2002 when we felt life was good.
The difficult part for us is the rapid swing in value. Foreclosures (bank-owned properties) were 18% of all closings last year and short sales (where the owner sells the home for less than their mortgage amount with the permission of their mortgage holder) were an additional 10% of closings. That translates to nearly 1 out of 3 closings being a "distress" sale. That number is up 2% from 2010.
What about the current market? There is currently more than 10 months of inventory available. During a normal market, there is 3-4 months of inventory. 36% of homes available for sale are "distressed" properties. It is tough for the home owner who is paying their mortgage and maintaining their home to compete with these ‘fire sale' properties.
What's the good news in the housing market? It appears that consumer confidence is improving. Homes that are attractive and/or are properly priced are selling! Young people are purchasing homes that there are affordable and with great interest rates. If you're looking to purchase a larger home or a more desirable area, it's a good time to make that move. The one thing that I know is that home values will go up again - maybe not tomorrow - but they will go up. If you have questions concerning your housing situation, give us a call or email and we'll get to work for you!
Help the economy, BUY A HOUSE!
Rebecca Zandvliet Broker/Owner
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