National news says one thing, reality can be another.
Connecticut 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:
- New Jersey
- New York
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
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