Connecticut News: A Glut of Foreclosures

So, what do you think? Is this is no longer the doldrums, but the calm before an economical Tsunami?

New Milford a Leader In Sad State Category

From the above linked article above:

"...Gary Passineau, a realtor with the New Milford office of William Raveis Real Estate and Home Services, ..."With the glut of foreclosures on the market, the banks have not been able to deal with the situation,"

Mr. Passineau said. "I jokingly tell people that if all the bank properties came back on the market and reasonable offers were accepted, the real estate crisis would be over. I say that because there is so much inventory that the banks are holding."

The Catch 22 to Mr. Passineu's observation:

Sellers (including banks) can ask any price for their property, but Buyers set the price of a property when it closes.

A reasonable price may be much lower to a Buyer, and if accepted by a Seller or Bank will drive down the prices of all comparable properties, foreclosures or not. Foreclosures will sell faster, but home values would continue to drop, and probably at a much faster rate.

If the value of properties started to drop (at a faster rate), then those people who are just getting by, and have mortgage payments they can barely afford may decide to "walk away" because the properties are worth much less. This would create even more foreclosures!

Not to mention "taxes" ... Will towns go back and re-assess???

Connecticut Post: Home Sales Price Plummet - Where Do Those Numbers Come From

The Connecticut Post: Home sales, prices plummet

"...The Greater Fairfield MLS Tax Data comes from The Warren Group. The (CMLS) Greater Fairfield MLS provides municipal tax and sales data for 36 communities in Western Connecticut. This information is gathered by the Warren Group, the publishers of the "Commercial Record" trade paper. The updated information is sent to the (CMLS)Greater Fairfield MLS once the information is certified by the state.

The tax database also includes sales transactions, warrantee deeds, quiet titles, etc. The sales database is updated every six weeks depending on the timeliness of the municipality.

Also, the Connecticut Statewide MLS integrated the tax data from all Connecticut towns from The Warren Group."

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