Archive for May, 2008
The End is Near!
I regularly read articles about the imminent demise of real estate agents. You’ve seen them too. They go like this:
The internet is changing how real estate is bought and sold; see websites A, B and C. Consumers now have access to information they never had before. As more folks peer behind the curtain, real estate agents are going to suffer from fewer deals and lower commissions. The end is near!
Although I agree with much of the standard template, there are usually two critical assumptions that get glossed over, resulting in a conclusion (real estate agents are the next dodo bird) that I disagree with.
The first implicit assumption is that the only thing real estate agents do is match buyers and sellers. That’s the most visible part, but there’s actually more to it than that. We’ll save that story for another day.
The second implicit assumption is that real estate agents will ignore the internet revolution and cling to the status quo. Hopefully this blog is evidence enough that at least some agents are working hard to evolve their business to capture the best features of the internet.
Recent history has provided two examples of service industries that have been reshaped by the internet; travel agencies and stock brokerages.
Our family used to buy plane tickets through a travel agent – there was no other option. Now, nearly everyone that I know uses the internet to book their own trips. Yet travel agents remain. Successful agencies seem to focus on corporate travel, where the agency is able to manage and report on the travel of a diverse group of people, or packaged trips and other value-added services that capitalize on an agent’s unique knowledge. Travel agencies seemed at especially high risk for significant change because of the small transaction sizes, the relatively frequent purchases and the standardized products (all flights are basically the same).
In a similar way, stock brokers used to be the only access point to the financial markets. The internet was able to open the investment world to dramatically more participants, and the industry evolved in response. Today, financial advisors focus more on providing strategy and advice and less on gathering data and executing transactions. One could argue that financial services firms have benefited greatly from the internet because they are now able to provide higher-margin services to a more sophisticated and knowledgeable set of clients.
The real estate market will also evolve with technology, just like the travel agencies and stock brokerages. Despite the regular proclamations that the apocalypse is upon us, real estate agents will continue to play an important role for the foreseeable future. Buyers and sellers will continue to seek out professional advice for their very large and infrequent transactions that involve a completely unique property.
Like the NBC public service announcements, the more you know the better. Technology helps buyers and sellers know more about the markets and the process. Technology also helps agents stay on top of their markets more effectively. Most importantly, technology reduces busywork so that real estate agents can provide a higher level of service and advice, becoming more of an advisor throughout the transaction. As Michael Scott would be happy to report, it’s a win, win, win!
Greater Hartford Real Estate Market Report
Thanks to a loyal reader for the request of data on additional towns. If you would like to see other towns, just comment on this blog, or send me an email offline.
All info presented is from the Multiple Listing Service as of today, for single family homes only, deemed reliable, but not guaranteed…
There are 75 homes available for sale in Newington and 50 under contract waiting to close. Average days on market is 59 days. Newington is still a fast paced market and one of the more affordable towns for first time buyers.
There are 118 homes available for sale in Wethersfield and 32 under contract waiting to close. Average days on market is 57 days. Higher end sellers in Wethersfield don’t have much competition, but only 8 properties closed in the last year that were priced more than $500K. That means there is a year’s worth of inventory on the market for this price range.
There are 50 homes available for sale in Rocky Hill and 14 under contract waiting to close. Average days on market is 52 days. Most of Rocky Hill’s higher end prices come from homes built in the late 1990’s or early 2000’s, rather than brand new construction.
There are 82 homes available for sale in South Windsor and 35 under contract waiting to close. Average days on market is 73 days. Seller’s in the $300K-$400K range don’t have much competition in a price range that typically accounts for 25% of the sales in this town.
There are 220 homes available for sale in Manchester and 92 under contract waiting to close. Average days on market is 68 days. There are 80 homes on the market in Manchester at $200K or below. Manchester offers a lot of affordable opportunities for first time buyers, with a reasonable commute time to Downtown Hartford and surrounding towns.
There are 174 homes available for sale in Glastonbury and 55 under contract waiting to close. Average days on market is 74 days. 28% of the homes on the market in Glastonbury were built in 2007 or are to be built in 2008.
Farmington Valley Real Estate Market Report
Here’s the latest Farmington Valley real estate market report. The data provided is for single family homes, listed in the Multiple Listing Service. The info presented here is deemed reliable, but not guaranteed…
There are 142 homes available for sale in Avon and 46 under contract waiting to close. High end buyers have their choice of properties. Average days on market is 41 days.
There are 135 homes available for sale in Farmington and 43 under contract waiting to close. Farmington experienced the same number of sold homes in April of 2008 as it did in April of 2007, 15 houses. Average days on market is 83 days.
On a side note, 50 Cent’s house has been on the market for a year. No price reductions yet. I wonder if he really wants to move? After all, the Valley is a lovely place.
On another side note, it took me awhile to find a “family friendly” 50 Cent video. I try to keep my blog PG. 
There are 140 houses available for sale in Simsbury, with an additional 59 under contract waiting to close. Average days on market is 54 days. If you’re looking for a home in the $400K-$500K range in Simsbury, you have lots of choices. 21% of the houses for sale are listed between $398K-$500K.
There are 103 houses available for sale in Canton, with an additional 16 under contract waiting to close. Average days on market is 95 days. The various price ranges are fairly balanced. If you’re looking for a $1,500K+ home, you might want to try Avon, it has more choices available.