Multiple trends in the real estate world are converging this fall to create a home buying environment that favors strategic buyers. Since the buyer pool is pretty shallow right now, we thought it might be worthwhile to devote a week’s worth of posts to buyers. Buyer Week; it’s kinda like Shark Week on The Discovery Channel. At least that’s how we imagine it in our minds…
So here is the situation (not to be confused with The Situation):
– Home prices have been generally falling in Greater Hartford for a couple years now. Nobody knows what will happen next. We don’t know where prices are headed, and neither does anyone else.
– The first time buyer tax credit pulled a bunch of sales forward to the first half of the year. This has already been documented for Greater Hartford.
– Mortgage rates are at historic lows. Again, nobody knows where they will go next, but we do know that they’re below the historical averages.
– The fall buying season is quickly coming to an end. There is an uptick in deals in September and October, but the market slows considerably as the calendar moves deeper into November.
– Buyers are strongly preferring picture-perfect, move-in-ready, done houses. Needless to say, most homes don’t qualify. Contrast that to five years ago when people fell all over themselves to get a place they could put a little sweat equity into.
– There are lots of interesting houses on the market. Though, yes, most of them need at least some updating, and some need significant work.
Based on that, here’s the angle for sharky buyers. Think about taking a peek at the market right now and going against the current trend by considering homes that need a little bit of work. If you see something interesting, then you may be able to get it for a good price with a terrific interest rate. And if nothing catches your eye, fall back to your original plan.
Anyway, just some thoughts. Whether you’re considering a purchase now or later, check back in the rest of the week for different stories for buyers.
Good thoughts. I have noticed some surprising prices (lower than I expected) in the West End for some nice locations with good square footage and pleasant curb appeal. Glad that house on Prospect sold – its lovely from the road and what a surprising asking price – 425k – for massive amount of square footage. I do think for now – and perhaps for quite some time (years) – buyers will be less and less willing to bother with a house that hasn’t been updated unless there is a very steep discount. One additional reason is that updating is not something that many people want to bother with – while some relish the challenge, many buyers do not have the time or the inclination. That’s particularly so in old houses – nearly 100 years. I personally find its not easy to find quality contractors who really know how to handle an older house – which makes updating more of a hassle. Those that I have found seem to be either extremely busy and not particularly hungry for the work, or semi-retired….. Still, America is supposed to grow by 100 million (eck) over the next 50 years – and location wise, close by the city will have some advantages and hopefully the required updating will occur.