More on the Stimulus Plan

This article in the Wall St Journal today spells out the some of the details of Obama's plan being unveiled today in trying to break the cycle of foreclosures and falling home prices. Key to this plan is a government subsidy to help banks modify troubled loans. Click on the title to read the story.

First Time Home Buyers Tax Credit...The Details

In order to understand the benefits more clearly, I'm posting a chart, compliments of the National Association of REALTORS®. As you probably have heard, both the House and Senate have passed the Stimulus Bill and the President signed it today. This one offers a non-payback plan. That is non-payback as long as the borrower owns the home for over 3 years. The good news for first-time home buyers who have purchased in 2009, this bill is retroactive.

In addition to the Stimulus Bill, the President is scheduled to announce the Administration’s comprehensive housing recovery program tomorrow. I will be in touch with more details about this announcement as it is released. It will focus on foreclosure relief and the modification of existing loans (delinquent and possibly current).

New Canaan Real Estate Activity February 1, 2009 through February 15, 2009 (Residential Only)

New Listings 20

Price Changes 27

Contracts Pending 6

Total Homes on Market 237

By Category
Under 1 million 38
1 to 1.5 million 38
1.5 to 2 million 28
2 to 2.5 million 21
2.5 to 3 million 21
2.5 to 3 million 28
3 to 4 million 29
4 to 5 million 13
Over 5 million 31

While there are no closed sales to report, there is an increase in the number of pending contracts. Activity at open houses is very brisk as many buyers are coming out to check out the current inventory to see what is new and stay current with the market. The number of homes for sale under one million represents a much larger selection that we have seen in a very long time. For first time buyers, this may be a window of opportunity to purchase a solid home in New Canaan and still be eligible for the federal tax credit of $8000 which does not have to be repaid.

4 Lot Subdivision in New Canaan(10.69 acres) reduced to $3,900,000

The owners of this property are motivated to sell. This subdivision is fully approved by the town of New Canaan and is ready to go. Each lot of over 2+ acres is approved for a 6 bedroom home and a pool. The owners are even starting the road.
Great opportunity for a builder, investor, developer or end user to purchase 4 lots now priced at under one million per lot.

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