No ‘Shortage Of Inventory’ In Connecticut
The Danbury News Times has a rare look at a Connecticut housing market. “The sales pace for homes has slowed in past few months from the fevered pace of 2003 and 2004. Realtors say price jumps have halted, causing homes to stay on the market longer. A year ago, 35 Danbury houses sold for less than $500,000 in the first 40 days of the year. The typical house was on the market for 55 days. The average sales price was $330,000.”‘
“So far this year, the price increased by 2 percent, and only 27 houses closed. They were on the market an average of 86 days.”
“‘We hosted a sales training meeting and compared November 2004 with November 2005. The market time increased and we had to adjust the way we were talking to the clients,’ said Scott Cooney. Cooney said he counseled Realtors to ask their clients to be realistic. Just because their neighbor’s house sold for a certain price a year ago doesn’t mean theirs will today.”
“Things aren’t flying off the shelf,’ Cooney said.”
“The city reported a 4,800-unit backlog of approved housing units, both condominiums and houses, in 2004. Today, the backlog for units approved or in the permit process is only 2,700, said City Permit Coordinator Sean Hearty. That means 2,100 houses and condominiums hit the market in the last year. ‘It appears that the neighborhood housing boom has slowed down,’ Hearty said.”
“Fairfield University Economist Ed Deak said residential real estate inventories are 40 to 60 percent higher now than they were a year or two ago. The higher inventory could level out home prices and slow price rises, Deak said.”
“In New Fairfield, Realtor and Broker Christopher Gould said the town has a higher number of houses for sale today than it did over the last few years. ‘A couple of years ago there was a shortage of inventory,’ Gould said. Today there isn’t.”
“Gould said 2005 was as good a year for sales as 2004, but the test for 2006 will come over the next few months if the Federal Reserve continues to raise short-term interest rates. ‘Houses are on the market a little longer, and we may see some price breaks,’ Gould said.”
In the bubble markets the spring season will be dissapointing for sellers as prices will decline or remain flat. Houses will be selling, but not enough to reduce inventory in most bubble markets.
David
Bubble Meter Blog
No one will be buying houses in CT today. Too much snow!
you take 35% reduction in sales, add in 6 months inventory, toss it in a blender and what do you get?
voilla! single digit appreciation!
Fixed.
try double digit declines!
Snow affected the first post-superbowl weekend market in the Northern VA region here. I saw two measly listings in my inbox this morning. I noticed a large runup in inventory in Fairfax Co. before the weekend that haven’t gone away as not many contracts this weekend.
February 9th Thursday
4022 7:00
4030 10:00
4075 7:00
February 10th Friday
4099 8:00 am
4174 9:00 pm
Oh boy! The real-whores have finally gotten their “excuse.” The Spring selling season will be -disrupted- by the unusal record breaking late winter snow storm and next weeks’ cold snap. This is so pathetic. The dog ate my homesales. I’m actually surprised at the inventory rise. Who are these people selling? That means they are planning on buying somewhere else except for the flippers and they are so stupid they won’t stop til they are burned either. I expected sales to plummet as they have and for inventory to accumulate at the normal place but it seems everywhere inventory is beeing added at twice the normal pace as sales decline. There must be a lot of scared people who thought their home equity was their retirement nest egg.
bingo. It’s going to be a tough retirement for a lot of boomers.
“The dog ate my homesales” — I like that.
Robert C,
I, too, wonder what the motivation of the sellers is. In this D.C. area, we have always been transitory. I was talking to my plumber last year who said military folks were buying even for the short-term just as everyone else is. The problem is, they get transferred out and have to decide what to do with their property. I know another couple who sees all the price reductions near the $500K range and they think they can sell their place and downsize and live large. The problem is the $740 they thought they’d get has also gone down in value to $630 or less. (And they’re realizing that, albeit slowly). Another lady I know woke up one day and thought she could sell here and move to Nashville and practically retire. But her bright idea is to wait until April when the spring market will give her top dollar.
“Realtors say price jumps have halted, causing homes to stay on the market longer.”
I think someone has a problem with the concept of cause and effect.
prices slowed” dats good grammer
hehehhe
per crash prices
CT went down 30% from 1989 to 93
N VA
I was driving around by 12 sunday- streets were clear
A 30% drop in CT house prices. Yeah, I was hoping for that. Hope I dont have to wait 4 years, though.
I’ve been calling for any type of small correction, I can’t see 30% happening.
There are many others out there like me, waiting for even a 10% drop on to which to pounce (to buy).
Sales in Connecticut have slowed dramatically and prices stopped rising 9 months ago. Good quality condo’s in desired complexes would sall in days a year ago- now it takes months. We had a 40% decline in condo prices here in central Connecticut from 1989-1996 (not 1993) Despite the fact that the area is not overbuilt- and not dependent on RE as an economic engine- at the gym this morning spoke to a lady who is a realtor- she see’s a big correction coming- and says prices should fall in Hartford metro area 10-15%. In areas like DC, California, Florida, AZ she sees a total meltdown- an honest realtor- my faith in the honesty of the ‘profession’ is restored- at least a ‘little’. She also said David Lereah is a ‘liar’……
Danbury is not all of CT. Moreover, it’s not even a desired place to live in Fairfield County nor is it commutable (barely if) to NYC.
Sorry to say, but inventory is quite low in other gold coast towns. I’ve been watching for 12 months now.
From the stuff that is on now, much of it is leftover from last year (and won’t be selling anytime soon - stale).
I’ve been watching Greenwich for the past 4 months. Inventory has steadily risen. The prices are still insane– saw a 1 BR condo go on the market for $700,000 last week. Somewhat run-down middle class 3Br/2Ba capes priced at $1.5 million. I know there’s a lot of hedge fund money there, but the prices are still totally crazy. Not surprising that the same houses have been on the market since October.
Prices will continue to be insane in Greenwich. Wall St. paid out 20bn in bonuses this past year.
I don’t know why you would expect to find reasonable housing in Greenwich. It’s an elite town.
the majority of that $20B went to the top eschelon of Wall St. I don’t think they’re plowing it into condos in Greenwich. Bonuses for people who are house-buying age are mostly sub-$100,000. After taxes, that doesn’t really get you very far in terms of a downpayment. Not to mention the fact that most of these guys knows there’s a bubble and aren’t anxious to buy into it.
Not saying that these bonuses haven’t made a difference on the margin, but I don’t think they will single-handedly prop up Greenwich prices. Greenwich will always be elite, but it was elite 5 yrs ago when RE was valued 150% less too
Inventory in Stamford and Norwalk has gone way up, sales are dead as well as open houses. Where have all the buyers gone LOL…lol..lol