Home Selling in Fairfield>Question Details

Anthony Derb…, Real Estate Pro in Fairfield, CT

What evidence are you finding to support the belief that the Real Estate market is coming back?

Asked by Anthony Derbyshire, Fairfield, CT Tue May 17, 2011

I've been in several multiple offer situations this year. I've also had buyers that haven't been serious tell me that they are serious. Finally, a buyer that I work with said that 'you can feel things getting better.' I believe him. I got into this business in 2006. Back then, I believe the market was on a slow dip with occasional bumps up. Now, I think it's on a slow upward tick with occasional dips down. What do you see?

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The market is coming back when we are too busy to ask if the market is coming back.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Tue May 17, 2011
Today is the first day since April 1st that I have not had some sort of real estate appointment. And I still negotiated an offer (unfortunately unsuccessfully)... a multiple bid situtation no less.

Prices may not be rising incrementally, but sales activity is up.

I'm busy - the market changing!
0 votes Thank Flag Link Wed May 18, 2011
Tony,

The Berkshire Board of Realtors recently released statistics that show sales up 15% this past quarter from the same quarter last year. It's definitely busy here in the Berkshires, and buyers do seem more serious (we are writing up more offers and more deals are coming together). It's all very promising and we are grateful to see it.

Best,

Tom Lynch
Associate Broker, Massachusetts, New York, and Connecticut
Berkshire Property Agents
12 Railroad Street
Great Barrington, Massachusetts 01230
0 votes Thank Flag Link Tue May 17, 2011
I think it is really hard to gauge the direction of the market. Sales have definitely been up this year and even multiple offers but median and average prices year-to-date for some towns in Fairfield County are not. Thought the link to the WSJ video below fit some of the markets I cover. The comment about Northern New Jersey could just as well be Southern Connecticut.

Hopefully unemployment will continue to improve and the banks will lighten up their lending practices.....
0 votes Thank Flag Link Tue May 17, 2011
The market is up when sales volume trend is up over the prior period.
For example, in our town of Greenwich CT, the first quarter single family home sales results are up 39% YTD April 2011 over the same period last year. (143 homes in 2011 vs. 129 homes in 2010)
The average sales price for single family homes in the same period went up 9.7%.
With prices stabilizing and interest rates at record lows, astute buyers are recognizing value and opportunity. I can’t speak to all markets as they are driven by local supply / demand and local economic conditions, but in some like ours, it is improving.
0 votes Thank Flag Link Tue May 17, 2011
I'm an optimist by nature, Anthony; but my optimism is reserved these days for the occasional "pleasant surprise." I also came into Connecticut Real Estate in 2006, having been through the previous recession ('79-'85) as a real estate broker in Florida. So, the "slow dip" you describe here in CT in 2006 felt to me then like deja vu. Anyway, my entire real estate career has been a recessionary experience. But this time around, I decided to work exclusively with buyers (since the law now permits that) and develop a more uniquely focused area of expertise, and I figure recession's a great time to try something new.

Also like you, I've experienced multiple offer situations and quick sales in the midst of this disastrous economic scenario. And while buyers are surely looking for bargains (who wants to be in this kind of a mess 5-10 years down the road, after all?), I have found many exceptionally well-priced properties I've encouraged buyers to consider coming as close to list price as comfort permits--and sooner rather than later. I'm afraid I believe that buyers in general are still a little uncertain about future--their own and that of the real estate they hope to own--particularly so for first-time buyers, but also a good-sized cadre of potential sellers who struggle between the growing cost of "staying put" and the desire to downsize (if only for financial reasons).

And in the midst of all this, we have to consider the devastation so many sellers are experiencing with foreclosures looming and short sales still very difficult and sometimes impossible to maneuver toward a satisfactory outcome. Not to mention the downward pressure all of that places on the surrounding marketplace values.

The "news" about the state of real estate, which arrives in my mail every morning is likely no less conflicting than that which my buyers are reading--and sellers, too. I think buyers & sellers alike probably read into such "news" their own personal degree of hope-slash-anticipation for what is to come. All I can say is I believe there are plenty of great opportunities for buyers to accomplish their buying objectives with confidence and plenty of sellers who would be happy to oblige for perfectly valid selling objectives (which surely include their own subsequent housing needs and requirements).

My take is that we'll be jiggling this thing loose for some time to come--one buyer at a time. But I do believe the jiggling loose has begun.
0 votes Thank Flag Link Tue May 17, 2011
Our market here in Fairfield County, CT (about 1 hour from Manahattan) has seen an increase in transactions, since the total slump of 2008/2009. Also there is a leveling off on the prices which do not appear to be sliding anymore. The Summer, Fall and Winter transactions are yet to unfold...
Our market is stronger than most nationally. Our experience here may not reflect our colleagues in other areas of the country. The real estate market here is driven by Wall Street finance guys/gals, so just think about where we were when all the banks were collapsing and the Dow/Nasdaq were tanking vs where we are today!
0 votes Thank Flag Link Tue May 17, 2011
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