Luxury Rentals Take a Big Hit

Today's Wall St Journal prints a story about the luxury rental market and a softening of prices. Click on the title above to read the story. Larry Story of Brotherhood and Higley in New Canaan is quoted in the story also. Here in New Canaan there seems to be an increasing inventory of homes on the market for rent. At the present time there are 113 rentals on the market including all types of rentals from studio apartments to luxury homes. Of all the properties on the market, 46 are over $5,000 per month. However, this is due to the fact that most of these homes are also for sale and the owners are offering to rent or to sell. Of the 46 homes over $5,000 per month, 35 of them are also for sale and have not sold yet because of the slower market.

I looked at the year 2008 expecting to see a huge contrast but I found that that 43 of the homes for rent over $5,000 per month did rent. So the news here is not so bad.

Some reasons to think about buying a home

The title links to an article I read in The Wall Street Journal about some reasons that buying a home might not be a bad idea right now.


The affordability index is much better

There is a healthy inventory of very good homes to choose from

Owners are offering discounts or reductions off asking prices

Mortgage interest rates are at historic lows.

Federal Tax Credit
The House and the Senate agreed on a compromise $789 billion fiscal stimulus plan. It is expected to pass before the end of the week. The Obama administration estimates that 3.5 million jobs will be added or saved by the plan. The Senate version contained a provision for a $15,000 homebuyer tax credit, but that was dropped in the final version. Instead, the $7,500 first time homebuyer tax credit will no longer need to be repaid.

New Canaan's Tax Assessment

Jeb Walker, the first Selectman, met with the New Canaan Board of Realtors today at our monthly membership meeting. The hot topic was the new assessment. He said that while the new assessment valuations are going up 30% based on a median number, it is expected that the mill rate will drop substantially. The mill rate will be based on the budget of the town after the grand list is finalized. So even though it appears that your assessment has increased substantially, your taxes may not increase to that degree. The town has a shortfall in the budget to cover, and the town is working on cost saving measures to make things work.

The town's assessor was also present at the meeting. In the course of his conversation, he mentioned that the town divides the geographical area into 16 neighborhoods, each allocated with a different number and different land valuations. Although building assessments are based on square footage and are fairly consistant, the location of the property will dictate the land valuation. This information is public and available at the tax assessors office.

Ryan Associates, the tax appraisal company hired by the town to conduct the new assessment, has been having informal hearings with residents who feel that their new assessment is in error. They have concluded these meetings. However, if you feel that your new assessment is miscalculated, you will have the opportunity to meet with the Board of Assessment Appeals through March before the grand list is finalized. Contact the tax assessor's office for further information.

Open Houses This Weekend Sunday February 8, 2009

184 Lukes Wood Rd was photographed by professional photographer Andrea Morini this week. Click on the title to see the new pics on the website. This bank owned property is reduced again and ready to be sold. Priced at $2,900,000, there is an open house from 2-4 on Sunday.

36 Hoyt Street, a charming in town antique within walking distance to everything, is move in and picture perfect. Priced at $949,900, this property would be a delight to live in. Visit the website at www.36hoytstreet.com. Open House on Sunday from 1-3PM

236 South Bald Hill, New Canaan

A very talented professional photographer from New York City contacted me to photograph two properties that I have on the market in New Canaan. 184 Lukes Wood Road and 236 South Bald Hill Rd. Andrea Morini is a very accomplished artist who is known worldwide and his pictures are amazing. They also show many fine details of each property. I have added the pictures to the websites for these homes. 236 South Bald Hill is on the market for $3,890,000. You can view Andrea's pictures at www.newcanaanexceptionalproperty.com or click on the title above.

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