Westport, Connecticut Moves

Have you been waiting for the right time to purchase a home?  The planets may finally be aligned in your favor.  Three factors have come together, to create an attractive buying opportunity.

• More negotiable home prices
• Historically low mortgage rates
• First time buyer tax credit

More Negotiable Home Prices

At first blush, it doesn't appear that prices have softened, in Westport.  Average selling price of a single family home remained flat, rising less than 1%, from $1,699,078 to $1,708,804, comparing 2007 and 2008.  However, we see a different story if we just look at the 4^th quarter, comparing similar size and style homes. The average selling price of a 3-4 bedroom, 2-4 total baths, 2,000-4,000 s.f., not new construction colonial, declined 10%, from $1,173,631 to $1,059,532.

Clearly, prices are becoming more negotiable.  Additionally, the proliferation of short sales and foreclosures are placing further downward pressure on home prices.  In all likelihood, we may not have hit bottom, but trying to time the market could mean missing out on a good buying opportunity. 

Historically Low Mortgage Rates

As with home prices, there is no way to guarantee a given date when you will receive the absolute lowest mortgage rate.  However, mortgage rates are currently hovering at historical lows.  During 2006 and 2007, the national average rate for a 30-year fixed, conforming loan was in the low to mid 6% range.  During 2008, national rates averaged around 5.5%.  As recently as 2000, rates were over 8%.

While rates are subject to change, yesterday, January 29,2009, Jeff Jensen, a certified mortgage planner with Connecticut Home Mortgage, quoted the conforming 30-year fixed rate at 4.875%  and the Jumbo 30-year, fixed rate at 5.875%.  These rates coupled with softening prices are an attractive combination.

First Time Buyer Tax Credit

In July, Congress enacted the Housing and Economic Recovery Act of 2008.  Included in the package was a provision for a $7,500 refundable tax credit, available for first time home buyers.  In reality, this tax credit is more accurately described as a zero interest loan, repayable over 15 years.  For the purposes of eligibility, first time home buyers include anyone who hasn't owned a principal residence during the past three years.

The credit is for 10% of the purchase price up to $7,500.  The full $7,500 credit is available to taxpayers with modified adjusted gross income of $75,000/year ($150,000 for couples.)  Partial credit is phased out for higher earnings. 

To qualify, the homes must be purchased on or after April 9, 2008 and before July 1, 2009.  The credit May also be used for new construction as long as the home is occupied by July 1, 2009

All of these factors, plus the enviable position of not having a home to sell, makes it a opportune time to purchase your home.

First Time Home Buyers - This is your market!

To view Connecticut listings Search the MLS/IDX   Only the listings of brokers participating in the Multiple Listing Service/Internet Data Exchange program will be displayed in this search.

Copyright © 2009 Marilyn Katz, WestportCTProperties.com, All Rights Reserved, Westport, CT, First Time Home Buyers - This is your market!

The Westport real estate market ended 2008 on a stagnant note, posting weak unit and dollar sales .  As we begin 2009, there are currently 252 single family homes actively listed (not including 7 with agreed to offers.)  This equates to eleven months of inventory, based on 2008 sales data.  Most of the listings are not new offerings.  The average time on market for these listings is 149 days, or approximately five months.  This figure is understated, as it does not take into account the days on market, for those homes that were previously listed.  During 2008, inventory averaged over 300 homes, with 281 active listings, in January 2008.

In the final month of 2008, approximately half of the single family, unit sales were for homes that sold for $1 million or less.  Yet, in the current inventory, only 30% of the listings are in that price point.  Clearly, the makeup of the market is out of synch with the current buyer.

What does this mean for the consumer?

For homeowners, now may be a good time to list your home.  Inventory is the lowest it's been, in a year. Make sure your home is competitively priced. Pricing just under comparable properties may be all it takes to get you offers.  Clearly, a two and a half million dollar home is not going to be sold for a million, but perhaps, your asking price may have to come down to $2.4 million or even $2.3 million.  You may also consider offering buyer incentives, such as purchasing a home warranty or allowing a credit towards closing costs.

For buyers, the ball is in your court.  Mortgage rates are at historical lows but they won't stay there forever.  First, find out the price home for which you qualify.   Don't be afraid to make an aggressive offer but remember you are not just buying an investment, you are buying a place to live.  If the house is well priced, and it meets all or most of your wish list, there is nothing wrong with paying at or near asking.

THIS DATA IS COMPILED FROM THE CONSOLIDATED MULTIPLE LISTING SERVICE AND MAY NOT ALWAYS BE ACCURATE. NO WARRANTY IS MADE AS TO THE ACCURACY OF THIS INFORMATION. YOU SHOULD VERIFY ANY INFORMATION THAT IS IMPORTANT TO YOUR BUYING

To view Connecticut listings Search the MLS/IDX   Only the listings of brokers participating in the Multiple Listing Service/Internet Data Exchange program will be displayed in this search.

Copyright © 2009 Marilyn Katz, WestportCTProperties.com, All Rights Reserved, Westport, CT - Looking Ahead to 2009

The turmoil in the housing market took a bit longer to hit Westport, CT, but by the end of the year, the market downturn had firmly taken hold.  Annual home sales were off by a third, compared with 2007, for both units and dollar volume, with average selling price, essentially flat.  As the year came to a close, the trend was definitively down.  

Quarterly Recap

The Westport housing market held its own, for the first quarter of 2008.  While unit sales dipped 28%, compared with the first quarter of 2007, prices continued to climb.  The average sale price of a single family home, rose 16% to $1,748,446.  Half of the homes sold, during the first three months of the year, sold for more than $1,339,000.

As Westport's moved through the spring market, its traditional insulation from housing downturns was no longer evident.  In the second quarter, unit sales were down a precipitous 69%, compared with the corresponding quarter, a year ago.  Average sold price fell 6%, to $1,654,202 and median sold price went from $1,550,000, in 2007, to $1,295,000.   

The market firmed up, a bit, in the third quarter.  Though still behind last year's pace, the number of homes sold was only off by 13%, compared with 2007.  The median selling price rebounded to $1,500,000, topping the previous quarters by more than 10%.  Homes also sold quicker.  Average time on the market fell to 93 days.

The financial crisis took its toll on the real estate market in the final quarter of the year.  More than one third fewer homes sold, compared with the comparable period, a year ago.  Median selling price also declined, as sales shifted to the lower end of the market.  Total dollar sales volume, for the quarter, dropped 45%.  On the brighter side, mortgage rates dropped alongside prices, offering qualified buyers an opportunity for some of the best deals of the year.

THIS DATA IS COMPILED FROM THE CONSOLIDATED MULTIPLE LISTING SERVICE AND MAY NOT ALWAYS BE ACCURATE. NO WARRANTY IS MADE AS TO THE ACCURACY OF THIS INFORMATION. YOU SHOULD VERIFY ANY INFORMATION THAT IS IMPORTANT TO YOUR BUYING

To view Connecticut listings Search the MLS/IDX   Only the listings of brokers participating in the Multiple Listing Service/Internet Data Exchange program will be displayed in this search.

Copyright © 2009 Marilyn Katz, WestportCTProperties.com, All Rights Reserved, Westport, CT - Home Sales Market Recap 2008