Dana Voelzke

Question: Hey, I thought this was a buyer's market? My fiance and I have a great, stable jobs with strong income and $50,000 to put down in cash. We will be getting married soon. We've been trying to buy an entry level house for $350,000 in the Greater NYC area for over a year. I have looked at over 60 homes and made offers on a few but none have been accepted. I still think prices in this market are too high. What gives? Signed, Frustrated

Dear Frustrated:

Statistics tell the story of what is happening in your market. While many in the media focus on by how much prices have decliined and how much below the sellers asking price you can offer, you need to be focused on how much inventory exists in the segment of the market in which you are bidding. If you simply ask your agent, I'm sure he or she can provide you with that. There is more inventory in the upper price ranges of the market than at the entry level, where you are, which explains why it may not feel like such a buyer's market to you. You're not the only one, believe me. Most of the activity in the area where a commute to NYC is accessible is from first time buyers who are focused on the entry level price ranges, bringing inventory down to an almost 'balanced market' levels of 6 months or less in some areas.

Real estate laws vary by state, but your buyer agent should be the one charged with finding your home, listed on the MLS or otherwise, so that you get the benefit of professional counsel, pricing advice, etc. on each home you consider for purchase. This market can be tricky because prices in all areas aren't necessarily coming down in a nice clean 10-20% linear fashion. You need an agent who knows prices in your market and can provide you with an opinion of value on homes you're bidding on. A "cheap" bank foreclosure can quickly turn out to be not so cheap when the cost of repairs is added to the bill.

You also need to realize that if you're looking for a deal, like everyone is, you need to be wiling to buy when no one else is. For example, if homes in your price range are attracting 20 people at an open house, then there may be too much traffic chasing too many homes (further evidence of my comment above on inventory). Make sure you have your pre-approval and financial house in order. Be sure to work with an experienced lender who can help you understand how the many recent changes in underwriting criteria may affect your specific situation. Know your numbers, keep saving more money, and do everything you can to continue to prepare yourself as much as possible.

Your agent should be able to give you basic insight into the seller's motivation before you even walk into the house and can counsel you on potential negotiating strategies. You should be looking to purchase from motivated sellers if you are "looking for a great deal".

Good luck!! Be patient and stick with it!!

It's early April and it seems we are already seeing quite a healthy uptick in activity this spring. Buyers are out attending open houses, new listings are getting more showings, and a few multiple offers on attractive, well-priced properties seem to be occurring.

Statistics for the first quarter of 2009, broken down by price range, show that the number of pending sales is greater the number of sales from January through March 2009, which is what demonstrates that the spring market is pretty strong. However, the numbers also show that there is quite a bit of inventory on the market to be absorbed.

What is interesting is the wide difference in inventory levels between the different price ranges. Clearly the sweet spot is between $250,000 and $350,000 in Greater Danbury, which is about how much it costs for a 3BR single family home at around 1,500 sqft. that doesn't need major structural repair.

Below $250,000 are quite a few homes, many in need of structural improvements, and are more difficult to sell. Of the 45 or so current listings in Danbury as of today, half of these are distressed sales - about one third are short sales and another 25% are bank owned foreclosure properties.

Between $350,000-450,000 inventory is quite a bit higher - almost 17 months!!! Pricing in this segment is less driven by the urgency of the issues in the lower price ranges, however, it must also reflect the current level of inventory that is far above the average of 12 months where the market has been for some time and a long way above a balanced market of 6-9 months.

In the upper ranges $450,000-600,000 and the luxury category of $600,000 and up, inventory is above two years, calling for extremely competitive pricing in order to see any showings or offers.

Pricing is inventory driven in this market.

New Website: BetterInBrookfield.com

McCaffrey Realty Professionals offers a website filled with real estate resources about Brookfield, CT. Search for information on homes, neighborhoods and schools, financing, market trends and more. Visit www.BetterInBrookfield.com.

About Brookfield, CT

Population: 16,000
Area: 20 square miles
Median home price in 2008: $419,500

A thriving community for most of its history with stagecoach stops, railroads, taverns, hotels, mills and farms, Brookfield today is one of the fastest growing communities in the Greater Danbury/ New Milford area. Notwithstanding its progressive development in recent years, the town has remarkably managed to maintain its small-town friendliness and rural character. Much of Brookfield's quality of life is attributable to the varying styles of homes, convenience, and abundance of shopping facilities, along with its wealth of natural resources, particularly Candlewood Lake.

Source: DanburyRelocation.com

Just sold Cute 4BR cape with 1 car garage and nice level back yard. The sale price was $210,000 including a seller's concession for closing costs.

Click the link below for details:
http://CMLS.fnismls.com/publink/default.aspx?GUID=bdf8d338-6939-4e7e-b768-e0e061901138&Report=Yes

For about a year and a half now I have been helping working families, especially those who recently purchased their first home, to deal with a series of financial challenges related to their high mortgage payments, often with variable interest rates.

Many times the challenge comes from a job loss, high investments in things like remodeling the home, purchasing new furniture, etc. which has left them with a heavy debt load, or sometimes they made assumptions about growth in future income that never happened or had family or health issues that added to the financial burden of raising a family.

The conclusion I have come to is that there is never an easy answer, and there is no silver bullet. I have had some really happy endings, but each case is different and requires a detailed, careful analysis of the complete picture. I have guided some of the people I've helped in one way or another through loan modifications, short sales, bankruptcy, or foreclosure and learned a lot during the entire process.

One thing that is important in all of the cases is that the sooner you deal with the problem, the more options you will have available to you. Many times people don't adjust fast enough to a coming crisis and by the time they react they are already accumulated substantial debt or are already several payments behind and the number of options open to them has dwindled by this point. Declining real estate values have made the situation worse. If you got out of a house you can't afford while the values were still higher, you may have come out better off. It's easy to say, but hard to do. Many people who fought hard for home ownership want to hang on to the dream of home ownership as long as they possibly can.

To make matters worse this crisis in homeownership has brought out a number of unscrupulous individuals who are seizing on people's vulnerable position as an "upside-down" homeowner, when the balance owned on the mortgage is greater than the current market value of the home.

It is really important that homeowners seek educate themselves on the different options open to them, and distinguish between their own interest and the interests of lenders and investors, buyers, and real estate professionals, and how these interests may influence their decision. For a list of questions to ask yourself and your trusted advisors, visit www.mccaffrey-realty.com and click on the "Q&A Short Sales and Foreclosures" button in the upper right hand corner.

Remember: the most important thing is to keep yourself and your family safe and to ensure that you are healthy and united to get through this challenging time.