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Joe, Home Buyer in Connecticut

Hunter's Run in Avon, CT has a lot of units for sale. Why the exodus?

Asked by Joe, Connecticut Thu Oct 8, 2009

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Ralph Ovalle’s answer
Hi again Joe,

I appreciate your thoughtfulness. I can see I may have a different perspective than you in how I think of the real estate market. We could discourse this in great length, and I would enjoy listening to your value judgements pondering the views, and sharing mine, but regretfully this internet venue makes that difficult.

In essence, I view residential real estate as a commodity, not a product. We all need commodities in life to survive; we do not necessarily need a product. Commodities rise and fall based on market demand; products can be established at an original price and could go to zero. An example is a fad product. There will always be a market for commodities.

Thus, though I respect how many might look at their home, or other homes, as to what the market will bear for it now and compare it to what initial asking price may have been when it was either built or purchased by them, as a commodity those prices do not reflect the current environment. So, I'm of the school of thought that intial asking price is irrelavent. If I have to move now, I have to sell and buy within the current market. If I don't have to move now, but would "like to", then I agree with you wholeheartedly that "it may be the case that many people are waiting to sell hoping the market firms up". Yet, selling later at a higher price may mean they have to buy something to replace that sale at a higher price. Missing the market and selling later at a lower price may mean they can buy something new at a lower price.

You mentioned "at what price/discount are the units selling". If you mean what percentage of listing price did the units that closed in the last year sold, then collectively that Sales to Listing Price percent is 95%. I'd say those are pretty good stats given what we went through during the three year slump.

I am sorry to hear that a member of the real estate profession would counsel a client with a "do not put your unit on the market". I would lay out Pros and Cons, but not tell a client not to do something he very may wants to do or needs to do. Along with that I'll add that Autumn and Winter are a great time to list. There are always relocations and others who wish to buy and we all know that a large part of the population tends to think of waiting to sell until the "Spring market". For a seller, fewer homes on the market means the chances are greater that his/her home will see more traffic and sell sooner.

My humble opinions, of course.

Ralph
Web Reference: http://www.RalphOvalle.com
1 vote Thank Flag Link Fri Oct 9, 2009
Ralph thanks for the stats but if you think about the #s you would have to ask the following:
1. At what price/discount are the untis selling?
2. How much below inital asking price are they selling?
3. It may be the case that many people are waiting to sell hoping the market firms up.

Just to gain market info I talked to an owner who is not living there (unit empty) but was told be his realtor to not put his unit on the market because people are heavily discounting. So it seems that things are not going as well as your #s imply. This is just an opinion.
0 votes Thank Flag Link Fri Oct 9, 2009
Hi Joe,

Here are the Stats for condo units listed and sold through the cooperative Multiple Listing Service of the brokerage community:

263 = Total No. of Units at Hunter's Run
7 = Number of Closed Sales in the last 12 months
2 = Number of Units currently under Contract and moving towards a Close
7 = Number of Units currently on the market for Sale

Thus,
The 7 units for sale represent less than 4/10 of 1%.

So,
Not really a large turnover given the large size of the complex. :)

If I can be of service to you at any time, I'd love to be considered for the job of going to work for you.
My contact info is in on my web page referenced below.

Ralph Ovalle
Coldwell Banker Residential Brokerage
Web Reference: http://www.RalphOvalle.com
0 votes Thank Flag Link Thu Oct 8, 2009
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