Archive for the 'Buying' Category
2011 Closed Stats From 50,000 Feet
Last year we gathered up all the Hartford County residential transactions since the beginning of the CTMLS in 2000 and showed how the very high level trends had changed over 10 years. Today we update those charts with the data from 2011. As always, the CTMLS is deemed reliable but not guaranteed.
Observations
The total number of single-family home transactions fell again in 2011, decreasing about 8% from the 2010 total. With the latest data point, activity for this type of property is about 41% off the 2005 peak in Hartford County. Last year we wondered whether we had seen a bottom in the number of deals – clearly 2010 was not the bottom.
As sales volume fell, showing a decrease in overall demand, the average sales price was apparently not changed. We don’t put a lot of faith in average prices because they are strongly influenced by the mix of homes that sold in a particular year, so we think something else is going on.
Our anecdotal experience is that home prices are still falling in all the towns and markets in which we do business. We also see more interest in higher priced homes, which will tend to inflate the average, and believe that’s why the average sale price edged up slightly. We’ll work on building the case to either prove or refute this hypothesis and share that result too.
Big picture analysis like this is never especially satisfying since we usually end up with more questions than answers. What are you guys seeing out there as you follow the markets? Michael called 2011 almost perfectly in the comments from last year’s post, so we clearly have knowledgeable readers!
Also, we have this data broken down by every single town in Hartford County. If you’re interested in a specific town, email us and we’ll send you the charts.
December Contracts: Making Up For November
December single-family contracts came in at 357 for Hartford County, which was slightly higher that the number of deals that came together in November.
December is traditionally the slowest month of the year, so having it outpace any other month is a bit of a surprise. We think that the usually large snow storm, which was felt through the beginning of November, worked to push some business into the year’s final month.
This December also showed an uptick in activity compared to December of 2010. The number of homes that went under contract this past month is nearly 10% higher than the total from the previous year. It’s difficult to know how much of this observation can also be attributed to the snow storm. Our feeling is that it is not a result that we should read too much meaning into.
Results were well distributed at the town level, though not over as extreme a range as we have seen in previous months. More interesting is that the number of homes actively for sale has come down to about 6.6 months worth of inventory. It was at 7.3 months in the November report, and peaked at 8.8 months in the June report.
Inventory levels should be lower at the beginning of the year. Many sellers take their properties off the market over the holidays so they don’t have to worry about keeping their home in “show condition” and accommodating visits from potential buyers. New listings will begin to come on the market at a steady pace, and the pace will increase as we get through the winter and closer to the traditional spring real estate season.
We’re working on our 2012 real estate predictions, and will hope to have some more analysis of 2011 available in the coming weeks.
Firing Clients
The other day I called an agent to get some feedback after they showed one of my listings. The agent informed me that they were not sure what the person thought about the home because they had fired their client and would no longer be working with them. The agent indicated that the client repeatedly wasn’t respectful of their time and the agent was cutting their losses, rather than continue to be disrespected.
Honestly, it is not a common practice for real estate agents to fire clients. Most agents realize that this is a high stress job and do their best to provide good service to their clients. We work with all different types of people and personalities who are partaking in a large, often stressful, financial transaction. Some clients are easier to work with than others, just like you would see in any other customer service job. Agents that do well in this business are able to adapt to work with a variety of personalities and put things in perspective for people, when needed.
But there are times when certain clients do just need to be let go and told that the business relationship is not working. I have severed relationships with less than a handful of clients during my time as a real estate agent. I don’t take firing clients lightly. In each instance I thought long and hard about it, but in the end it was the right decision.
What would lead to me firing someone? Verbal abuse, for one. I had one seller client that verbally disrespected me during nearly every conversation. I have enough self respect for myself that I won’t put up with someone talking down to me. I suggested that our relationship wasn’t working and that they would be better served by someone else. I cancelled our contract and went on my way. They did hire someone else, but their home still has not sold. I hope the new agent is receiving more respect.
The only other reason I’ve found to stop working with a client is the same reason the agent above mentioned, disrespect for my time. If you’ve asked me to schedule showings for you, please show up at least remotely on time. It’s disrespectful to the seller and to me if you don’t. I’ve had a few clients that wouldn’t show up for showings and wouldn’t call me. Or others who repeatedly showed up more than a half hour late and wouldn’t even apologize. Changing your appointment times or being late every now and then is understandable. Everyone is busy. But repeatedly being a no-show or really-late-show wastes my time that I could be spending with other clients.
I have good relationships and experiences with the vast majority of my clients. I enjoy helping people and I think that shows in the service I provide. But at times a client relationship just doesn’t work. In those situations it’s sometimes best to be professional and let them know they may have a better time working with someone else. Hopefully everyone involved will have a better experience.
Should I List My House in the Fall?
It’s the middle of October in Greater Hartford. The leaves are turning. It’s getting dark outside earlier. We’ve turned our heat on (much to the chagrin of my better half). To me, this signals the seasonal slowing of the real estate market. But I’m still getting phone calls from folks that want to sell their homes. Should they list their house now? Or should they wait until the spring?
There are a few things to consider when selling your home in the not-Spring market.
1. Does your house show well when the landscape isn’t in bloom?
2. Are you willing to keep your heat at a reasonable level to be warm and inviting for showings and turn on numerous lights for your showings?
3. Are you willing to have your home sit on the market a little longer than it would if it were Spring?
4. Are you willing to have fewer showings of your home than it would if it were Spring?
If you answered “yes” to these questions, it should be fine for you to list your house in the late fall and winter months. Realize that there will be fewer buyers (so fewer showings) in November through February. Typically only serious buyers are looking during these months. They are not preoccupied with holidays and need to focus on finding a home for one reason or another. That can be a good thing for sellers.
Many homes come off the market in the late fall that didn’t sell during the Spring and Summer market. This means less competition for sellers that are newly entering the market. Another good thing.
I always advise my fall and winter sellers that they need to be a little more patient with the market. Most are fine with this because they’re making the conscious decision to list now, rather than wait for the Spring. Fall selling isn’t for everyone, but if you’re not the nervous type, it may be a great time to put your home up for sale.
91 Girard Avenue, Hartford’s West End
Steps from the UConn Law School and Hartford Seminary, this West End home has 4 bedrooms and 1.5 baths over 2,230 square feet.
This classic Scoville Victorian offers original architectural charm and a bright, open floor plan. The foyer with its turned staircase opens into the formal living room with fireplace. The formal dining room has plenty of space for entertaining and leads to an office. The remodeled kitchen features great cabinet space, granite counters, stainless steel appliances and an eat-in area. A renovated half bathroom and mudroom complete the first floor.
Upstairs the master bedroom has a dressing room space with built-in storage. The second floor has three additional bedrooms and a remodeled bathroom.
The third floor has a finished room and plenty of unfinished space which could be completed for additional square footage, if needed. Skylights make this a bright, welcoming space with great possibilities.
Outside the backyard offers privacy, a slate patio and 1-car garage.
91 Girard Avenue is offered at $272,000. If you’d like to see this home, please have your agent arrange a showing, call me at 860-655-2125 to schedule a visit, or stop by the open house on October 23rd between 1:00pm-3:00pm. More details and a photo tour are available.