August 2009 Greater Danbury Real Estate Market Data

Below is a snapshot of market data for the six towns in Greater Danbury from January to August.

Coming in to the fall market we see a lot of first time buyers in the market competing for homes because of the $8,000 first time home buyer tax credit, but also because of improved affordability resulting from lower interest rates and prices. In Danbury alone, there were 20 closed sales under $350k in August and there had been 26 in July, whereas typically activity levels would drop off. For more info on this phenomenon I suggest reading Janet Guilbault's blog Outsmart the Crowd: Skip the $8000 Tax Credit and Wait to Buy .

Also, the number of single family home sales in the $350k to $450k price range was 9 in August, compared to an average of 5.3 during the last 12 months. This is and encouraging sign. Investors out buying REO's and multifamily homes in cash. Over two thirds of all multi-family properties on the market right now are short sales or REO's which is making them attractive for distressed investors, even as rents continue to fall. Some are taking advantage of the glut of REOs to purchase their first rental property.

So what does this mean for me? It depends, of course!! When the market enters a down cycle, the cycle doesn't just last one year. For those who are waiting thinking that things will get better in 2010, I assure you it will take longer than than. The drumbeat from economists about the "double dip" recession continues to grow. The fact is that the cycles in real estate are long, 5-10 year cycles. This market presents some interesting opportunities, but only for those who act conservatively and are willing to take a long term view.