Litchfield County real estate information, local events and more.

head_left_image

Connecticut still in the top 5 for foreclosure inventory in the US

National news says one thing, reality can be another.

Top 5 foreclosure listConnecticut is still slogging through the foreclosure inventory that has built up. We actually rank 4th in the US for foreclosure inventory.

According to CoreLogic, a company that tracks many real estate statistics, the amount has decreased nationwide from last year, and yes, the housing market is improving. But for those of us living and breathing real estate these foreclosures are something we need to consider.

The top 5 states with homes sitting in foreclosure are:

  1. Florida 
  2. New Jersey
  3. New York
  4. Connecticut
  5. Maine

The problem is, although pricing may seem attractive, foreclosed homes can be out of reach for those needing a mortgage to purchase a home.

There are those that can be financed, usually the price will reflect that if there is nothing wrong with the home. But then there are those that have suffered significant damage and will require an investor to come in, purchase for cash, rehab and resell at market rate.

The real estate market does seem to be improving in Southern Litchfield County. I will be looking carefully at sales in July and posting them within a few days, but at first glance I see sales for July may be down compared to June. I like to wait to give agents time to record sales in the multiple listing service before pulling my statistics.

The process may have been started 2 years or more before the actual foreclosure happened.

 There are places in Connecticut that see more foreclosures than we see here in my neck of the woods, cities may have been hit harder than rural areas. But with no way for agents to easily track what is coming down the pipeline, it can be a wait and see thing. 

One other thing to consider is lenders have not been quick to foreclose. It can be like a wave that started in the middle of the ocean much before hitting the shoreline. Home owners gave up and left the homes vacant, some lenders foreclosed and just let the homes sit without putting them on the market. 

Unemployment rates also affect the housing market.

Connecticut took a small uptick in unemployment rates for June, the rate was 8.1%, the previous 4 months had been 8.0%. We are higher than the national average of 7.6%. 

We will continue to slog through short sales and foreclosures in Connecticut for the foreseeable future, and it will continue to affect the real estate market. I hope to see us drop off the top 5 list, as this is one top 5 list I really think we don't want to be on!

Stay tuned for July 2013 real estate market stats to see what actually happened in Southern Litchfield County!

 

Andrea Swiedler, Realtor, Southern Litchfield County Real Estate

2017 President, Greater New Milford Board of Realtors

2017 Connecticut Magazine 5 Star Realtor

 

 Search homes for sale in Litchfield County, CT.

 

Coldwell Banker Residential Brokerage

Litchfield County Regional Office,375 Danbury Rd, New Milford, CT 06776

 

© Andrea Swiedler 2009 - 2017

 Always do right. This will gratify some people and astonish the rest. - Mark Twain

Comment balloon 43 commentsAndrea Swiedler • August 01 2013 06:28AM

Comments

Yes to this post, subject matter and affect it has on the industry...good post

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) almost 7 years ago

Andrea, where there is turnover in real estate inventory, for any reason, there are opportunities. Here in Florida, foreclosures have created so many opportunites for investors, and first time home buyers, not to mention RE Agents. We are coming out of our down market with a reset cost basis for properties and that is great news to curb the over-inflated prices that were run-up in the 2000-2008 market.

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Lend Smart Mortgage, Llc.) almost 7 years ago

Andrea: Are you basing your numbers on the total number of foreclosures or the percentage of the population. It could make a big differrence. Homeownership is on the decline and is at its lowest in 18 years. The big investor is buying up the properties and renting them out. This will not last forever. I will never believe NAR's numbers.

Posted by Jimmy Faulkner, The Best Of St. Augustine (Florida. Homes Realty & Mortgage) almost 7 years ago

Richie, they have a large effect on us.

Norman, we have some investors, but not as many as I would like to see. The first time home buyer here is having a very hard time with these. If they are mortgage-able, they are gone in a heartbeat! I can't disagree with the over inflated prices that's for sure. Connecticut is behind you, we were late to the party.

Jimmy, this is based on total number not percentage. I know we are improving, but it is one step forward, half a step back type of progress. And some surprises to the market recovery should show up in my stats, but I am cautious about posting for a few more days. 

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) almost 7 years ago

Hi Andrea.... I'm surprised Ct is there over some of the southern states.... 

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) almost 7 years ago

Andrea, I am surprised as Barbara is that we are that high on the list here in CT.  I am not doing as many purchase loans on foreclosed properties as I have in the past.  The ones I have done more of are HUD owned properties.

But thank for bring this to my attention, it is good to know. 

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 7 years ago

Barbara, I am not surprised, but not happy about it. I would rather be farther along than this.

George, I wonder if that is because many of them are not qualifying for mortgages, or if they are just sitting vacant. 

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) almost 7 years ago

Why have I always considered Connecticut as a wealthy state?? 

Why have I always considered all of the states in the North East as prosperous??

There is a long ocean shore, that should bring the housing demographics up a bit??

Where did I go wrong????

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) almost 7 years ago

I wouldn't guess CT to be in the top 5, always interesting to see the dynamics of how this type of property presents itself in different geographic locations.

Posted by Morgan Evans, LICENSED REAL ESTATE SALESPERSON (Douglas Elliman Real Estate) almost 7 years ago

Lenn, well, it was. Good news, the coast line is seeing improvements in the housing market, but the further in you go, the slower it gets. What is unfortunate is we lost a lot of jobs over the past few years. What is good is that New York City money seems to be flowing again, so the second home market will see improvement and then it may translate to the rest of the market. 

Morgan, I know, but it is true. But as I said to Lenn, with New York City money flowing better we shall see improvement here. These foreclosures have been sitting for far to long, it is like the lights from stars reaching us after the star has already burned out I guess. At least we are behind New York and New Jersey? Sorry about that. 

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) almost 7 years ago

I was shocked as others to see Connecticut in the top 5 and also would have thought Florida would now be out of their foreclosure challenges.

California made it through our Foreclosure crisis providing opportunities for the foreclosed owners to recover and also for the entry level buryers to start their lives.

Continue to share hope to your home owners and congratulate the buyers who are in a great situation and have waited patiently to buy their home.  Everyone will be in a better position soon.

Posted by Michele Peterson, Sellstate Realty First (Sellstate Realty First) almost 7 years ago

Yikes, who would have thought the east coast is in such dire straights..... not good.

Posted by David Popoff, Realtor®,SRS, Green ~ Fairfield County, Ct (DMK Real Estate ) almost 7 years ago

Thanks for sharing this information. I wasn't aware the east coast had the most foreclosures. I hope you get knocked off that list soon as well. :)

Posted by Trisha Bush-LeFore, Providing Realtor Services in the Walla Walla Area (Preferred Properties Land & Homes) almost 7 years ago

Michele, I know we will make it through, just a matter of time. Hard when the forecast is so rosy nationally. 

David, not good, but we were last to get into the mess. 

Trisha, me too! 

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) almost 7 years ago

Being from Florida, I know Connecticut's pain.  I hear the stories about the market improving but in my area of Florida - the only reason prices are edging up is because the shortage of inventory.  It's not a real shortage, mind you, there are zombie properties everywhere - still plenty of properties abandoned by homeowners yet not foreclosed by the banks.  There are many properties that have been foreclosed but not yet on the market.  

Recently Florida passed HB787 - it's original intent perhaps was to expedite the foreclosure process but in reality, it only gave the Plaintiffs (banks) a way to cherry pick which foreclosures they would like to expedite.  

There is little motivation for delinquent homeowners to even initiate a short sale when they can continue to live rent free.  Back in the day, the strategy would sometimes be to stall the foreclosure to give homeowners the opportunity to prepare to move - nowadays homeowners know they can stay even after the foreclosure sale!  One of my recent listings, the former owner stayed another 6 months after the foreclosure - it took that long to evict them.  

It's still a mess.  Sorry to ramble.  I love my job.  I love my job.  I love my job.

Posted by Wendy Smith, Real Estate Advisor (Wendy Smith Real Estate) almost 7 years ago

Surprised California isn't on the list. Foreclosures do cloud the market and hold value down. Hope your world gets better. Understand it Living in Florida.

Posted by Bill Reddington, Destin Florida Real Estate (Re/max By The Sea) almost 7 years ago

It is interesting that Connecticut is still slogging through the foreclosure crisis as deeply as it is.  And like Lenn, I wonder why it was the North East was so heavily hit!

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) almost 7 years ago

Also, in regard to Bill's #16 comment, California is actually on a slow steady recovery track.  We managed to balance our budget for the first time in a decade.  The bad news is we increased taxes to accomplish it.  I'm in the Greater Sacramento region, and we experienced a 30% increase in home values year over year.  We are currently leading the nation in the housing recovery.  We were so far down a few years ago, we had no direction left to go, but up!

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) almost 7 years ago

Andrea, we have our problems here and the facts about unemployment are not at all true as the numbers are significantly higher.

For Lenn:  the figures for wealth in CT get skewed because of the wide disparity of wealth found in lower Fairfield county, the towns that border New York. The wealth there is by far the highest accumulation in the states as Fairfield county is the wealthiest county in the country and that brings the rest of the state up. If that county were annexed to New York, our per capita might be more like a county in the deep south

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) almost 7 years ago

Interesting statistics that I was unaware of Andrea. Four out of five northeast states. That explains why I have so many clients from up north, waiting to move south, but can't sell their homes there. Even in this improving economy.

Posted by Mitch Muller - Charlotte NC Real Estate, Certified Residential Specialist (ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com) almost 7 years ago

Yes Andrea.. Unfortunately we are ahead of you in the numbers. Pockets of good things happening, but don't be fooled that we are out of the dark.

Posted by Janis Borgueta, LIC RE Salesperson (Key Properties of the Hudson Valley ) almost 7 years ago

This list was a surprise to me.  I hope before too long all states will start to see the end of foreclosures.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) almost 7 years ago

I am surprised at the data.  I expected Nevada and California to be right up there with Florida.  Number of sells in our rural Western North CArolina community are up from last year but our average sale price has not increased.  There doesn't appear to be many stablizing economic factors to get excited about.

The unemployment figure is next to useless.  It accounts for only those receiving unemployment compensation.  It does not count those who gone of the roles, the under-employed, or those who never qualified for unemployment benefits. 

Posted by Allen Lomax, WNC Mountain Homes & Horse Farms Specialists (Steed Talker Realty is with two hours of Tryon International Equestrian Center and we offer the best properties in the area.) almost 7 years ago

Top 5 in inventory, but #1 in lawn care :)

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) almost 7 years ago

Did you guys allow 100% Owner Occupied financing?  I know CA, AZ, and NV did, which helped cause the crash.

Posted by Gary Frimann, CRS, GRI, REALTOR and Broker (Eagle Ridge Realty / Signature Homes & Estates) almost 7 years ago

Wow, that is an interesting tid bit.  I am glad I am licensed in FL and CT  2 of the top 5 foreclosure states.

Posted by Brian Sharkey, SharkeyRE - #SouthFloridaBroker (SharkeyRE LLC) almost 7 years ago

Andrea

Sad to see things are still so touch with regard to foreclosures. I think CA, along with other states in the areas, is a judicial state, so the courts have really slowed down the process in the last few years and inventory has built up. We have worked through a lot of our inventory (at one point CA was one of the states with the largest number of short sales and REOs. Hopefully things will continue to improve.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (eXp Realty of California) almost 7 years ago

Interesting about Florida -- many of the states that were leading the foreclosure parade, have worked off a lot of that inventory over the past several years (think Arizona, Nevada, and California).  But given that Florida still is leading the list, it illustrates just how out of control the problems was there.

Posted by Eric Crane -- Your Full Service, Discount Fee Realtor®, Greater Metro Phoenix Arizona (DPR Realty LLC) almost 7 years ago

Andrea, thank you for sharing so interesting information, great blog post!

Posted by EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD, Short Sales, Foreclosure & Bank Owned Real Estate (LAROSA REALTY) almost 7 years ago
Sorry to hear about the struggling market in Connecticut. Hope things improve soon.
Posted by Ralph Gorgoglione, Hawaii and California Real Estate (310) 497-9407 (Maui Life Homes / Metro Life Homes) almost 7 years ago

Andrea, that's a surprise news as I believed CT is an affluent state....and even more surprised not to see AZ and NV in this list, not to mention MI.

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) almost 7 years ago

Shadow inventory and National Debt coupled with unemployment is a VERY scary reality we cannot avoid much longer. Its going to get very interesting very soon

Posted by David Shamansky, Creative, Aggressive & 560 FICO - OK, Colorado Mtg (US Mortgages - David Shamansky) almost 7 years ago
Andrea - This just goes back to the concept that real estate is local.
Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) almost 7 years ago

Andrea I am not surprise the Northeast  States are now in the top 5 of foreclosure states since they were slower to foreclosure and homeowners in some cases used the legal system to delay the process. 

Real estate is truly local, some areas within the State are  doing fine,  while others are struggling.

Good topic for discussion.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) almost 7 years ago

Numbers and stats can say many things, at first glance they can appear contradictory.

For instance according to CoreLogic Florida is the #1 Foreclosure state.

But in the greater Pensacola Florida area housing inventory is the lowest since 2005 and distressed home inventory is a smaller part of that inventory.

Resale sales are up, new home sales are up and prices are rising.

How can that be? Fewer properties are going back to the bank and those that are have a being sold quickly.

That being said, as we all know, real estate is local and so is the economy. Local economic problems can lead to real estate problems. I hope things improve in Connecticut soon as they have here.

Posted by Emerald Coast Realty, Realtors (Emerald Coast Realty) almost 7 years ago

Wendy, it is a mess still. We see homes sitting and sitting empty, and who knows how many have their owners or former owners waiting for the sherrif to show up with an order of ejectment. And yes, many owners do know how long it can take. Others are surprised at the swiftness of the process. No rhyme or reason. We are seeing a shortage of the lower end, and often these foreclosues are in that group because they are either in such bad condition or because they are homes that never should have gotten the mortgage amounts approved they did and they are for first time home buyers anyway. Glad you love your job, LOL.

Bill, we were later to get in than you were, we are going to be later to get out. Could work out to the same time frame.

Myrl, employment possibilities plays a great part in this mess. CT got too expensive for companies to be here and they left, or they laid off. I can't say CT is on a good recovery track because as Ed points out below, those unemployment rates are not true one.

Ed, Ed, right as always.

Mitch, there are many who can't sell their homes here, you are right. But we are seeing a bit of improvement. I am concerned when I stop to think how many foreclosures we have to slog through though. And it is all still so fragile.

Janis, I have my eyes wide open for sure.

Joan, I hope, but it will still take time.

Allen, I agree with the unemployment numbers, but it is what they feed us, you know?

Laura, LOL, what can I say. We won't be as these foreclosures are not taking care of their lawns.

Gary, yes we do, but the house has to qualify too. And they are often in bad shape.

Brian, lucky you!

Jeff, we are a judicial state also.

Eric, it does speak to how out of control the problem is in Florida. And all over...

Emilia, thank you.

Ralph, it is an up and down thing, very fragile. We all hope it improves.

Praful, read Ed Silva's comment above.

David, this shadow inventory is scary. Interesting to say the least.

Christine, it is local, very local.

Jennifer, you hit the nail on the head. I am sure you are going through exactly what we are going through.

Kim & Bill, local economics have everything to do with it. Next, is the state business friendly?

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) almost 7 years ago

Thankfully, we are not seeing this problem in the Charlotte area. But the Northeast is still clearly needing time for recovery as compared with other parts of the country.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Realty) almost 7 years ago

Andrea, it surprised me to see Connecticut on the list. Hopefully, things will turn around for the people in Connecticut.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA almost 7 years ago

Sorry to hear about the situation on Connecticut.  We are just really getting into the full effect of foreclosures in the Virgin Island, In my opinion the banks are still learning how to handle them and they are more of a shadow inventory.

Posted by Tanya Van Blake-Coleman, Improving the Quality of Your Life (Van Blake-Coleman Realty, St. Thomas/www.talk-to-Tanya.com) almost 7 years ago

For some reason I find this shocking. I lived on the east coast for years and I guess it's just hard to imagine that Connecticut could be in that top 5. Thanks for sharing. 

Posted by Jeff Stevens, Jeff Stevens, Associate Broker (Berkshire Hathaway HomeServices New Mexico Properties) almost 7 years ago

Thanks for sharing the good information on foreclosures. Being in the top five for that would not be a happy situation. Hope that changes for your area soon.

Betty

Posted by Team Honeycutt (Allen Tate) almost 7 years ago

Andrea I feel for all of you. You and I talked a lot when AZ was in the middle of foreclsure hell. It wasn't a pretty picture.  I only hope you pull through this faster than we did.  I know you and you'll find a way to thrive not just surrive.

Posted by Anna Banana Kruchten Arizona's Top Banana!, 602-380-4886 (HomeSmart Real Estate BR030809000) almost 7 years ago

All the empty homes create problems in areas, the banks don't take care of  the yards they were bad enough here, you have green things that grow

Posted by Jack O'Neal (HomeSmart Elite Group) almost 7 years ago

Participate