TAX CREDIT IS ON IT'S WAY

The Senate last night passed an expansion of the tax credit proposal. The proposal would be available to all purchasers (not just first-time homebuyers). NAR was instrumental in getting this provision passed by the Senate. The key elements are:

· A tax credit in the amount of $15,000 or 10 percent of the purchase price (whichever is less), with the option to utilize all in one year or spread out over two years
· The tax credit is available to all purchases of any home from date of enactment for one full year.
· Able to claim the credit against the 2008 tax return
· Buyers must occupy the homes for two years as their principal residences
· Purchases of homes by investors are ineligible
· Terminates the previous $7,500 Housing Tax credit on the date of enactment

We have been told the Senate is likely to pass its entire Stimulus Bill by this week-end. The House and Senate will then have a conference next week to work out the differences.

Get ready it’s coming!!!!

Movement of Interest Rates

While rates have risen a bit since their bottom during the week of January 16th, they are still at historic lows.

New Canaan Real Estate Data January 2009

31 Day Activity Summary for January

New Listings 23 (Relistings not included)

Price Changes 27

Contracts Pending 7

Total Inventory 213

Why banks are making it tough on consumers looking for mortgages

John Sauro of North Atlantic Mortgage has this interesting take on mortgage rates today as viewed in an interview with Bloomberg News. Click on the title to see the video interview.

Reuters Article. Housing Market has Turned

Click on the title above to read the article.
This article mentions that the rates of sales have increased because of the amount of foreclosed homes being sold at attractively low prices. The National Association of Realtors say that the inventory of homes on the market fell 11.7% in December translating into a 9 month backlog (not so bad because in a healthy market we see a 6month backlog). In New Canaan, we currently have 211 homes on the market. Although the article speaks to a national audience, there are some similarities between national averages and our New Canaan market. Well before the statistics and graphs publish sales data and average prices, I see what is happening first through the level of buyer interest generated. Phone calls start, emails begin with questions, showings result and then negotiations begin. While we are not yet seeing an abundance of sales, we are seeing increased activity and a tremendous amount of interest. For example, I see several properties bindering extremely quickly because the asking price has been reduced substantially or they come on the market at a very attractive asking price. These homes are generating a multitude of showings initially and then offering bids, sometimes even multiple offers resulting in a sales price over the asking price. The bottom line is "for those who have to sell, price is the name of the game". You definately can sell, but it has to make sense for each and every homeowner because every body has a different story and a different level of motivation. Also, mortgage rates are at 30 year historic lows, allowing so much more buying power.

A Look At Another Real Estate Market

I spent the weekend in Florida visiting parents and had the opportunity to look at some condos for sale. While is is dizzying to try to sort through the myriad of available properties, short sales and foreclosures in South Florida, I singled out a few and I found this condo particularly appealing.
1147 Hillsboro Mile Unit #1006 Hillsboro Beach Florida
Originally listed at $329,000, the current listing price is $169,000. However, the highlight feature of this condo is the view. Located at the 10th floor penthouse level, it has commanding views of both the Atlantic Ocean and the Intercoastal and the views to the west inland. It is located on Hillsboro Beach on The Hillsboro Mile adjacent to a string of single family multi million mega mansions, so the view over the tops of these homes is commanding and will not change. Common charges are $536 monthly, which include a 24 hour security guard, lovely pool, immaculate beachfront, community room, gym and garage parking. Taxes are $4896 per year, so the total cost of carrying the unit is approximatley $1,000 per month excluding mortgage. But at the asking price of $169,000,the mortgage is minimum. Click on the title to see the listing detail. What an eyeopener!

New Canaan Real Estate Activity January 19, 2009 through January 25, 2009 (Residential Only)

New Listings

105 Richmond Hill $699,900
183 Smith Ridge Rd $870,000
82 Lakewind Rd $1,165,000(relisted)
792 North Wilton Rd $1,925,000
128 Dunning Rd $1,995,000(relisted)
1343 Smith Ridge Rd $2,990,000
887 Weed St $7,250,000

Pending Contracts

577 Cheesespring Rd $1,189,000

Why Buy a Home in 2009?

My latest column in The New Canaan Advertiser Online speaks about some of the reasons that one would consider buying in New Canaan this year. Click on the title to read the article.

Another Huge Price Reduction on Bank Owned Foreclosed Estate in New Canaan

This bank is motivated to sell this property. This home will be a really incredible buy for a smart buyer. Now priced at $2,900,000 after being reduced yesterday by another $250,000, this home is a bargain.
STOP BY THE OPEN HOUSE THIS SUNDAY, JAN 25 FROM 1-4PM TO CHECK IT OUT OR VISIT
WWW.NEWCANAANCOUNTRYESTATE.COM

Also, as I had mentioned in my previous blogs, there are so many good homes on the market in New Canaan currently, a buyer has some terrific choices. One home that would never have stayed on the market in the past is 687 Carter St. It is an immaculate Colonial, completely renovated recently, with the most incredible thought to design and construction. This home has everything: dynamite kitchen with views of oversized swimming pool and sport court, 2 level usuable acres with children's play yard, new 3 car garage, fantastic mudroom addition with gym and full bath. It is immaculate and move in.
OPEN HOUSE THIS SUNDAY JANUARY 25 FROM 1-3 PM
Priced at $2,395,000, try to stop by and see for yourself
www.687carterstreet.com

$1,000,000 Price Reduction on 139 Hoyt Farm Rd, New Canaan, Ct now listed for $2,495,000

This motivated seller has decided to bite the bullet and sell this home. It has over 8,000 sq ft on 2 high level acres in Hoyt Farms. 10 foot ceilings, detailed moldings, marble baths, 2 story entrance hall with double staircase, 3 car garage,4 fireplaces and swimming pool. This owner says "SELL NOW". This is really an incredible opportunity for the astute buyer as the value of the land and replacement value of the house so much exceeds the asking price. To see more pictures please visit www.hoytfarmnewcanaan.com or click on the headline.

New Canaan Real Estate Activity December 15, 2008 through January 19, 2009 (Residential Only)

While there has not been too much activity over the last month, I sense that buyer interest levels are picking up as showing activity on listed homes is increasing. There are only 198 homes on the market for sale in New Canaan as of now and my advice to sellers is that if you are thinking of selling your New Canaan home this year, list it soon, because there is less competition right now. As the inventory tends to increase as we go into the spring market, you will less homes to compete with.

New Listings

18 Olmstead Court $799,000
155 Jelliff Mill Rd $1,059,000
56 Birchwood Ave $1,099,000
577 Cheesespring Rd $1,189,000
30 Mariomi Rd $1,250,000
48 Salem Rd $1,399,000
757 Oenoke Ridge Rd $5,695,000
266 Michigan Rd $6,795,000
195 Dans Highway $9,995,000

Pending Contracts

22 Urban St $599,000
51 White Oak Shade $1,195,000
44 Benedict Hill Rd $1,799,000
45 Shagbark Dr $2,099,000

Homes Sold

144 Hillcrest Rd $950,000

Market Activity in early January

I looked at the number of homes on the market in New Canaan today. As of right now there are 191 homes for sale which is about even with where we were last year (193) as of January 16, 2008. However, the number of homes on the market tends to increase as sellers begin to get more motivated to sell as spring approaches. As of last spring, the number of available homes in New Canaan reached over 300. So my advice to sellers is to get started now before your competition increases. While there is only a small number of contracts pending at this time and no reported sales so far this year, I am getting a sense of increased interest in the real estate market. I was out with clients this weekend showing houses in the $1.1 million price range and I witnessed something I have not seen in a very long time. When I drove up to the house I was planning to show, there were several different parties of buyers with their brokers waiting to get in, and this was on a snowy saturday. My phone has been ringing with more questions from current buyer clients but also from many new potential buyers who are spending much more time on the internet reviewing the listings. I had 3 separate appointments with buyers who do not need to sell homes, however, they are still moving cautiously. At my open house on Sunday, I had a visitor who also is renting in New Canaan and looking seriously to buy now because she told me prices were low and so were interest rates. My sense is that there is pent up desire to make moves this year as many potential buyers have put buying on hold for a while. It certainly is true that while everyone wants to make a prudent investment, you can not live in the stock market but you do want to live in a value priced home.