Deciding to buy a house is never an easy decision and all of the bad news about the housing market can make even the most optimistic person skeptical.  So, if you've been wondering if now is the time for you to buy a home, it's time to take a look at the reasons why you might want to make your move soon.

Housing Inventory is Very High:

Right here in Fairfield County there are more houses and condos for sale in every price range than there have been in many years, so a buyer can be selective.  In some towns there are so many houses for sale that it will take over a year, at current sales rates, for all of the homes currently on the market to be sold (and new houses continue to come on the market every day).  High inventory also means that there is more competition, so (most) sellers realize that they need to be flexible in the price and terms they are willing to accept for their house.

Prices Have Come Down:

Fairfield County's housing market hasn't been as hard hit as other parts of the country, but prices have come down almost everywhere.  That means that whether you were planning on spending $200,000 or $2,000,000, you'll likely be getting more house for your money.  If you're worried that the price decline will mean that your house will lose value after you buy it - don't. Real estate is an investment, but it's an investment you live in, so how much you gain on the investment is important, but having a home of your own to enjoy is priceless. 

Foreclosures & Short Sales are Everywhere:

Almost 1 in 3 homes for sale in the area are either already a Bank Owned Foreclosure or a possible Short Sale.  If you have a lot of patience and can be flexible about your moving dates, then you should consider looking into a Short Sale or Foreclosure property.  I mention the need for patience, because both Short Sales and Foreclosures usually require more time and paperwork than a typical home purchase.  With a Short Sale, you are at the mercy of the bank and may have to wait months to find out whether or not they will accept the price that you've offered for a house.  And with both types of deals, you're likely to be buying the house in "as-is" condition.  So you want to be sure to hire a licensed, experienced Home Inspector who will give the house a thorough inspection and let you know what work, if any, the house will require.  In either case, you want to be sure to choose a Buyers' Agent and Attorney who are experienced in dealing with these types of deals so that they can walk you through the process and keep on top of all of the details.

Mortgage Rates are Still Low:

Fixed Rate mortgages are still hovering around 6% for a 30 year term, which if you compare it to the rate that you might be paying on other debt, such as credit cards, is really good for the long term.  Talk to a mortgage broker or your local bank to find out what type of mortgage programs they are offering and how much of a mortgage you are qualified to borrow.  You may be surprised to find out that you could buy a condo or house and have mortgage payments that are less than your current rent.

Now that you've got a grasp of the general reasons why now is a great time to be buying a house, you need to think about your personal situation.  Ask yourself these questions to help determine whether now might be the right time for you to buy:

1. Do you plan to stay in the same area for at least 3 years?
2. Do you have any savings you can use for a down payment?
3. Are you confident that you'll stay employed, with the same level of income, for at least another year (longer is always better)?
4. Do you have other debts that you could/should pay off first?
5. Do you have enough income to pay the mortgage, taxes, insurance, common charges (for condos) and maintenance costs without stretching yourself too thin?
6. Are you ready to be a homeowner?

If you can answer all of those questions in the affirmative (except number 4 - you should pay down other debts, if possible, before taking on more debt) and feel comfortable that buying your own home will enhance your life, then go for it.  Find a dedicated Buyers' Agent who is ready to guide you along the path to home ownership and get ready to start your journey.

According to some generational classifications, my husband and I would be considered members of Generation X.  But lately, with the changes we've made in our lives I've been wondering if we've moved from Generation X to a new generational label.  The problem is, I can't decide whether we're now Boomerangs, Sandwiches or perhaps a Boomerang Sandwich.  Here's why...

At the end of the summer my husband, our 4-year-old son and I moved from our condo to a house.  Nothing unusual with that, except that the house we chose to move to is the house where my husband grew up.  Oh, and my mother-in-law still lives there.  So now we have three generations under one roof (a roof that happens to belong to my mother-in-law).

Here's where it gets complicated...we're grown children living back in a parent's home after living independently, which is a key trait of the Boomerang Generation.  But, we did it to help my mother-in-law, who, while still very healthy, young & independent, did not want to consider having to ever leave the home she's lived in for 26 years.  So, we're caring for our young child and our aging parent - Sandwich Generation.  See how I've managed to get an identity crisis?

That's why I am starting to think of my husband and I as a "Boomerang Sandwich".  On one level, we moved back "home" because it made financial sense for us (just like a Boomerang): a beautiful home in a family-friendly neighborhood with great schools for a lot less money than it would have cost if we chose to buy a similar house on our own.  But we didn't have to move from where we were.  We moved because we wanted to give my mother-in-law the ability to stay in her home for as long as she wishes, without worrying about rising taxes, increased utility bills or expensive home maintenance. 

It turned out to be the best decision for all of us.  She's happy and secure in her home.  And we feel right at home, too.

Oh, and if you're wondering how we keep our sanity being so close to each other.  Well, it's easy.  She's got a fabulous in-law suite that's connected to the living room and her music room (formerly known as the dining room) with a separate entrance from outside.  And we've got a door that divides our side of the house from hers.  Separate spaces where we can each be comfortable and live our own lives, yet be right next door when one of us needs the other.  It really is the best of both worlds.  I guess being a "Boomerang Sandwich" isn't so bad after all.

What Happened in September?

Well, if August was vacation month, then everyone must have spent September focused on getting back to school and work.  Home sales slowed again this month, with both overall the Median Sale Price and the number of Homes Sold in the County going down over August.  But, that's part of the normal sales cycle for our local Real Estate Market.  September is always a slow down after the Summer market, so it's not too worrying.

Here are the overall statistics:

Single Family Home Sales Statistics

 September 2007 - All of Fairfield County
Median Sales Price: $527,000
# of Homes Sold: 549
Average Time on Market: 99 days

Some Good News - Inventory & Absorption Rates

The good news is that the average number of homes sold per month (absorption rate) remained almost level with an average of 463 homes sold per month through September, versus 465 homes sold per month through the end of August.  The rate is 29% lower than the number of homes sold per month for the first 9 months of 2007, which has been the trend most of this year.  However, in 2007 the drop in number of homes sold from August to September was 3% and this year it stayed steady, which is a good sign.

On the Inventory side, the number of homes actively for sale has remained almost level as well, with 5,463 homes currently for sale.  That's still almost 12 months of inventory, which means we're in a strong buyers' market.

Should You Stay or Should You Go?

All of the bad news in the media can make even the most optimistic person worry about whether or not now is a good time to buy or sell a home.  It really depends on many factors that are unique to each individual or family, such as:

• Do you have to (or want to) move right now?
• Are you in a stable job with stable income?
• How is your credit history?
• Do you have other debts (car loans, credit cards, etc.) that you can pay off first?
• Do you plan to stay in your next home for at least 3 years?

If the answers to most of those questions are positive, then you're likely a good candidate to buy a home, especially if you're currently renting.  Bargains are everywhere and buyers are snapping them up, which is why the median sales prices keeping going down in many towns. 

On the selling side, if you have:

• A desire (or need) to move (to downsize, buy a larger home or go to a different town or state)
• Enough equity in your home to be flexible about your sales price AND
• Your home will sell for at or below the median sales price for your town

Then you should seriously think about selling now.  You may get less for your current home than you would have in the past, but you'll also pay less for the house that you're buying so you're coming out ahead of the game.

Finally, if you're thinking about investing in Real Estate, now might be the right time to jump in and buy your first property.  There's a real need for rental properties (condos, apartments & houses) because of the people who can no longer qualify for a mortgage or have lost their homes due to foreclosure (theirs or their landlords).  You can buy the properties at much lower prices now and the mortgage rates for investment properties are still low.  But be warned - you need to have enough financial reserves to be able to cover all of the expenses on the rental property, and any unexpected maintenance, before buying the property.  Not only will many banks want to see that you have funds available before they give you a mortgage, but you'll have piece of mind knowing that if a tenant fails to pay rent or your property is vacant for any period of time, it won't be a burden on you financially.

As always, if you're thinking about buying or selling a home or just want to keep an eye on the market, feel free to call me at 203-952-4899; email me at Marcie@BersonTeam.com; or post your comments here on my blog.  It's my pleasure to help you any way I can.

Town by Town Single Family Home Sales Statistics

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 10/10/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.

The month of September has been crazy for me.  Between moving to a new house, going on a wonderful family vacation and Rosh Hashanna, my schedule is completely out of whack.  Many things, including this blog, have fallen by the wayside, but I'm getting back to business.

Early next week I'll be posting my regular Monthly Market Update and a special Quarterly Market Trend Analysis to see where the market has been so far this year. 

Now as far as where the market might be going - well that's something I'm going to try and tackle also.  The only thing I know for sure is that all of the Wall Street wackiness is going to have a definite effect on Fairfield County.  Not only do many financial, banking and Wall Street-related firms have a presence here, but many people living here are (or were) employed by these firms so when they aren't doing well, it starts to cause problems in our local markets. So I'm going to weed through the national and local news stories to find information to help make sense of what's going on and how it relates to the local real estate market.

Along the way, I'll continue to highlight any other news stories or items that I think would be of interest.  Thanks for your patience during my short hiatus.  I promise to have more good information coming along for you soon.

It seems like the local Real Estate Market decided to go on vacation in August.  Home sales for the month were slower than July and the average sales price dropped a bit below where it was in June.  This isn't unusual for the end of the Summer since so many people plan their moves around the school year and many local schools started before Labor Day this year.  Despite the overall drop in the market there were some towns that had increases in sales prices last month (indicated in blue in the table below).  Here are the overall statistics:

Single Family Home Sales Statistics

 August 2007 - All of Fairfield County
Median Sales Price: $580,000
# of Homes Sold: 912
Average Time on Market: 93 days

Is the Market Starting to Level Off?

The number of homes sold per month (absorption rate) went up to an average of 465 for the year-to-date.  It's still much lower than the first 8 months of 2007 when the average was 674 homes per month.  But it's a good indicator that the local housing market is still following a fairly normal sales pattern with sales increasing through the Summer.

Overall inventory is also down from last month with 5,432 homes actively for sale in the County.  At the current absorption rate, that translates to almost 12 months of inventory, so it's still a Buyers' Market, but there's1 month less of inventory than in July.

What Does This Mean for You?

Fall and Winter are typically slow home buying seasons, so if you are thinking about buying a home, it would be a good time to think about making your move.  You'll still have plenty of homes on the market to see and there will be less competition from other buyers.  Also the Mortgage Rates have started to go down again since the government "take-over" of Fannie Mae and Freddie Mac, making loans more affordable and more loans available.  Lending criteria is still very strict so be sure to talk to a trusted mortgage adviser to be sure that you can qualify for the type and amount of loan you want before you fall in love with a new home.

Town by Town Single Family Home Sales Statistics

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 9/09/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.

July was a good month for home sales here in Fairfield County.  The Median Sales price is up 10% over June and 2% (basically stable) over July 2007.  More importantly, the number of homes sold was almost 100 more than last month and only 14% lower than the number sold in July 2007, which is much better than last month's statistics.  Here are the overall statistics:

Single Family Home Sales Statistics

July 2008 - All of Fairfield County*
Median Sales Price: $612,500
# of Homes Sold: 728
Average Time on Market: 96 days

July 2007 - All of Fairfield County
Median Sales Price: $600,000
# of Homes Sold: 831
Average Time on Market: 92 days

It's Still A Buyer's Market

The average number of homes sold per month (absorption rate) so far this year is 448, which is up from last month.  Right now there are 5,640 homes actively for sale in the County which translates to about 13 months of inventory based on the current absorption rate.  Things are looking up for home sellers, but we're still firmly in a Buyer's Market.

What Does This Mean for You?

If you're a home seller, there's a light at the end of the tunnel.  Price your home correctly (ask your Realtor for advice on how to price your home competitively) and the right buyer will hopefully come along soon.  If you really need to sell now, price your home as low as you can handle it - the bargain hunters are out there and you'll get their attention.

If you're ready to buy a home, it might be time to get serious.  While I don't expect any drastic rise in home prices any time soon, the market looks like it's starting to level off.  There will continue to be more foreclosures coming on the market, especially early next year when a large number of adjustable rate mortgages are ready to reset, which will have an effect on the overall market and might bring some good deals for buyers (but do your homework before considering a foreclosed home).  If you can wait until after Labor Day, you'll be at a bit of advantage because there are usually less buyers shopping in the Fall and Winter and sellers who really need to move will be more willing to make a deal.  Of course, if you really need to buy something now, you'll still be able to get a good deal, as long as you do your homework (or work with a Realtor who will do the homework for you).  Happy House Hunting! 

Town by Town Single Family Home Sales Statistics

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 8/05/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.

When you're thinking of buying or selling a home, you want to keep an eye on where the real estate market is going.  To keep you informed, I'll be publishing statistics on the Fairfield County real estate market each month and identify any trends in the local market that could affect your buying or selling decision.

Single Family Home Sales Statistics

June 2008 - All of Fairfield County*
Median Sales Price: $550,000
# of Homes Sold: 638
Average Time on Market: 101 days

June 2007 - All of Fairfield County
Median Sales Price: $606,250
# of Homes Sold: 1,002
Average Time on Market: 90 days

As the numbers clearly show, the overall Fairfield County market is not doing as well as it did in June 2007, but the news isn't all bad.  The overall Median Sales Price is down 9.3% and the number of homes sold is down by 36%, while the market time has increased by 11 days.  However, as you'll hear many REALTORS say, "All Real Estate is Local" and that's especially true for Fairfield County with the wide variety of towns and cities it encompasses. 

When you look at the towns individually, you see that 9 of the 23 towns have Median Home Sales Prices that have remained level or increased over the same period last year, which is good news.  And the overall Median Sales Price is 6% higher than it was last month.  To see how each town is doing, check out the chart at the end of this post.

Absorption Rate & Current Inventory

Looking at the Absorption Rate (average number of homes sold per month) and the current Inventory (number of homes actively for sale) is another way to determine which way the market is moving.  For the 1st half of this year, there have been an average of 414 houses sold each month (Absorption Rate) in Fairfield County.  As of today there are 5,751 houses for sale in the County, which means that based on the current Absorption Rate we have almost 14 months of inventory on the market.  Generally speaking it's a Buyer's Market when there is more than 6 months of inventory for sale.  So we're well within Buyer's Market territory.

What Does All of This Mean for the First-Time Buyer?

Well, if you've been contemplating buying your first home, but you've been waiting for the prices to drop more, you might not want to wait much longer.  For many of the towns in the County, the sales prices are starting to level off or even increase, which means that the market is getting back to a positive trend.  Inventory levels are also starting to level off or decrease, which means that homes are selling or sellers are considering staying put if they don't have to move.  Of course, there will continue to be more homeowners facing foreclosure as their adjustable rate mortgages increase over the next few months, so there will be more foreclosure or "distressed" properties coming on the market.  But the competition for those properties will be fierce and they don't always present a good value (more on that in a future post).  My best advice is that if your finances are in order and you're mentally ready to be a homeowner, then don't wait.  A home is a long-term investment and if you buy it at the right price for the property (and for you) you'll receive a solid return on your investment if you stay in the home for at least 5 years.  And don't forget - it's not just an investment, it's your home and the memories you make there will far outweigh any financial gains.

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 7/14/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.

Thank you for coming to visit the part of the world that I call home - Fairfield County Connecticut.  Or, more specifically Norwalk, my home town (for now, but that's a story for another post).  For a first-time home buyer this can be an intimidating place - why?  Well, let's look at the numbers:

• The Median Home Sales Price in the County was $507,000 in the 1st quarter of 2008, which is almost double the Median Home Sales Price for the whole state of Connecticut
• Over 1/3 of the 23 towns & cities in Fairfield County have Median Home Sales Prices over $750K
• 7 of the top 10 "Least Affordable towns" in Connecticut are located in Fairfield County
• Only 36% of all homes sold were under $400K in Fairfield County in Q1 2008 (compared to 74% statewide)

Doesn't paint a great picture if you're a first-time home buyer with an average income who wants to live in this part of Connecticut.  But don't leave just yet..over the course of this blog I'm going to show you that there are many options - and good options, too - for home buyers at all price ranges who want to live in Fairfield County.  Consider me your own personal guide on the path to home ownership.  And why should you listen to what I have to say, well, let's just say that I know where you're coming from...

It was only six years ago that I bought my first home and made a lot of rookie mistakes.  Since deciding to make Real Estate my profession, I've made it my business to get educated on all aspects of the home buying and selling process so that I can pass that knowledge on to my clients.  Whether you're buying a home for $125,000 or $1.25 million (and I've helped clients buy and sell properties at both of those prices and everywhere in between), it's a huge investment that will affect not only your finances, but your overall quality of life and you should go into it feeling like you're making the best decision based on all of the facts available. 

It's my goal to help the people I work with do what's best for them, which may sometimes mean that they don't buy a home and that's OK.  Because if I've done my job and they are happy with their decision, then they will appreciate what I've done and tell others about it, which is a high compliment.  As Maya Angelou has said, "People will forget what you said, people will forget what you did, but people will never forget how you made them feel."  If my clients feel good about their new home, whether they own it or rent it, then I've done my job.