Hamden, CT

Recent headlines have stated that foreclosure homes accounted for 20% of all sales last year. That grabbed my attention, so I thought I would check to see how Hamden compared to the national statistics. According to the Greater New Haven Association of Realtors, 358 single family homes sold last year in Hamden. (That's up from the 354 I previously reported. Seems like some agents were slow to report their end of year closings.) Of the 358 Hamden sales, 44 or 12% were foreclosed properties. In addition, 28 or 8%, were short sales, which probably would have resulted in foreclosures. Added together, we have our 20%.

These are sobering statistics for an area that has some job protection from the universities in the area, which are the major employers. What it may reflect is the consumer's inability to obtain credit from other sources. With lines of credit reduced or cut entirely, the consumer has very few options, when money runs low.

To make matters worse, we are hearing that there may be a new wave of foreclosures in 2012. Many banks halted foreclosures last year due to questions about improper foreclosure procedures. Now that some of these issues have been addressed, the banks are ready to move forward to reduce their inventory. Foreclosures are a blight on their balance sheets.

What does this mean to our sellers? Houses have to be priced to perfection in 2012, if they hope to have a chance to sell. A seller can increase the value of his/her house to some extent, with landscaping, staging, and good maintenance. Few buyers, however, will pay a premium for amenites they expect to find in a home. That said, the market seems stronger in Hamden this January. Inventory is seasonally low at 251 houses currently for sale. We have 27 homes on deposit and 13 sales this month. Compare this to 7 sales at the same time last year, and you can see there is some energy here. We can only hope that the momentum carries the market forward and up this year.

This Saturday, September 17th, the Whitneyville Branch of the Hamden Library system will be open from 9:30 to 1 p.m. , thanks to the efforts of the Whitneyville Civic Association and the generosity of librarian Nancy McNichol, who has switched her normal scheduled hours and given up a part of her weekend, to make the library available to the community. I love to spend time at a library, so I'm thrilled to have it open for a Saturday morning outing for kids and book lovers of all ages. These Saturday hours will continue through the Saturday after Thanksgiving. We hope it can become a permanent schedule.

The Whitneyville Civic Association is a group of volunteers that work to improve the look and the quality of life in our neighborhood. The request for weekend hours was part of a Top 5 Priority List presented to the Town of Hamden, which includes things like bike lanes for those who want to bike to nearby New Haven, about 1.5 miles from the center of Whitneyville. Mayor Scott Jackson, attending the last Association meeting, remarked how citizens and town officials working together can get things done, despite tight fiscal budgets. It takes vision to improve a community, some creativity and the work of so many volunteers. You can read about the Whitneyville Civic Association at www.Whitneyville.org.

You can visit our library at 125 Carleton Street, corner of Putnam Avenue, one block west from Whitney Avenue. Make sure you thank the librarian!

Now that we are back from the Labor Day break, it feels like a good time to take stock of what is going on in our local market. Here in Hamden, sales of single family homes year to date number 225. This compares to 287 at the same time last year, so we are down 22%. Barring any unforeseen stimulus packages, it looks like a down year. Ever the optimist, I'm thinking we can only go up from here, right?

Our average sales price is $236,568, down from $250,135 a year ago. "Average" roughly translates to a 1700 square foot house with 1.5 to 2 baths. Average price per square foot is $138.80 vs $145.54. Marketing time is up to 88 vs 67 days on market. The Sales Price to List Price percentage is 94.53% now vs $96.04 YTD in 2010. So what can we learn from this and our own observations as Realtors? Anyone selling a property now is facing some severe headwinds. Bank short sales and foreclosures are still a large percentage of the market. 46 of the 225 homes sold, or 20%, fell into this category. In the prior year, it was closer to 10%. This skews the statistics by quite a bit, and makes pricing a home for sale a research project. I have noticed that banks are getting a bit more anxious to move their properties, and are dropping prices on unsold inventory more quickly. All statistics are courtesy of the Greater New Haven Association of Realtors.

Are there any positive here? I think so. Our inventory in Hamden is still moderate at 308 single family homes for sale. A good percentage of listings are expiring unsold, and many are not relisting. Bank owned properties are selling. Their prices have dropped to a point where they are quite attractive to investors. The numbers finally work. People with good credit have many good choices. This is a perfect market for someone who wants to buy a property and has nothing to sell. Those are the people who should be jumping into the market now. Housing is certainly not a passing fad - we all need a place to live, whether as owners or renters.

Hamden CT is selling the old Maselli farmhouse to the Greater New Haven Habitat For Humanity. Habitat for Humanity will rebuild the home and give it to a low- to moderate-income Hamden CT family to live in the house. The family would pay taxes and a mortgage, and the mortgage would be held by Habitat at no interest.

Habitat For Humanity builds and rehabilitates homes in the Greater New Haven area with the goal of creating safe, decent, affordable houses that add to the revitalization of New Haven’s neighborhoods. Habitat accomplishes its mission by partnering with individuals, religious and civic organizations, local business and corporations.

For more information, check out:

Ann DeMatteo's article in the New Haven Register. This article discusses the sale price of the home and details surrounding Habitat's development plans.

Also read Ann DeMatteo's March 14 2011 article about the legal battle over the Maselli Farm, where a developer had planned on constructing dozens of homes on the property. Local Dunbar Hill residents and the Connecticut Trust for Historic Preservation battled efforts to develop on the site.

What is a Short Sale?

Short Sale: when bank agrees to accept less than what home is CURRENTLY valued at.

Home values in the town of Hamden as well as New Haven County have dropped drastically over the past few years. Short Sales are becoming increasingly common in the area because of the benefits in contrast to a foreclosure or deed-in-lieu. In the case of a Short Sale, banks allow a house to sell for less than the outstanding liabilities.

It is not uncommon for REALTORS® in attempt to please sellers and to circumvent conventional wisdom to list home for more than it's value. The problem now is with: 1. Hoping it sells; 2. the APPRAISAL (which will reiterate CURRENT property value). The wiser decision would be to look at the dynamics of the seller's situation and determine if property is or could be a short sale canidate.

Hardship Test

To qualify for a Short Sale, you must pass a HARDSHIP TEST.

* Have you lost your job since home purchase?
* Has your interest rate increased and now hardship prevents mortgage payments?
* Have you incurred any large medical bills?
* Have you had any illnesses, injury or bad accident that prevents you from working?
* Was there a death of a spouse?

When lenders investigate the hardship of a seller, they will look for and identify any assets held in other real estate (including equity), CD's, bonds, and stock. In addition, they will look into whether home was aquired by fradulent measures; whether it was a misstatement on the loan application regarding employment, wages, or other assets.

Shortsales whether in Hamden, New Haven County, Connecticut or any other city, county, or state are very detailed and intricate transactions with much required documentation from sellers. In certain cases, the lender will be willing to take a loss, but not just for the sake of seller attempting to save credit score or history.

This is Part 1 on a Series of Short Sale information for Hamden and New Haven County. For questions, email me@mattdirect.com or call 203-654-6966.

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