Millie Legenhausen, CRS, GRI, CIPS, MBA

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.

Hamden experienced a slower market in 2011, which comes as no surprise to those of us who follow economic data. Despite lower listing prices and historically low interest rates, worries about jobs and uncertain local, national, and world economies weighed heavily on buyers' minds. Money was cheap last year, but really hard to get from banks. Wealthy people with great credit had no problem obtaining mortgages. This was reflected in the surprising number of homes that sold in the upper brackets - $750,000 and up. The middle range got hit hard and the low range, below $150,000, made up of short sales and foreclosures, dragged the market down. Buyers drove a hard bargain, and sellers not willing to negotiate are still holding their homes. I don't see a big change in the market this year, unless there is a stimulus of some kind to move the bank-owned inventory and make money more readily available to all buyers.

In 2011, 354 single family homes sold in town, down 11% from a year ago sales of 397 homes. More troubling, the average sales price per square foot dropped 6% to $135.54 from $144.47 in 2010. I'm using data from the Greater New Haven Association of Realtors and looking at "average" sales prices. As we know, statistics are skewed by the sales of very low priced foreclosures, but that has been a factor for several years now. We are still seeing a drop in prices.

What's it going to take to break this log-jam? For one, it's getting cheaper to own, than to rent. With four big colleges in the area, there is always a demand for rentals, so prices stay high. It makes sense to try to find a mortgage, such as a Connecticut Housing Finance Authority "CHFA" mortgage, and buy a private home right now. Housing is not a luxury - we all need a place to live. I tell my clients, "If you are paying for housing, why not pay for a place you can own?" By the time renters come up with two month's worth of security and the first month's rent, they effectively have a down payment. Second, there are small signs of an improving economy. These recessions don't last forever, despite the never ending feel of this one. The economy will start to grow again, and it can't come a moment too soon.

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.

Springtime means spring cleaning. How many of you have old computers, printers and related "stuff" in your basements right now taking up valuable space? Bring those electronics to Hamden Middle School this Saturday, May 22nd. Besides computers, you can bring monitors, printers, fax machines, copiers, old televisions, VCRs, phones, stereos, radios, microwaves, cameras and camcorders.

In addition to recycling, there will be a "shredding event", where you can bring up to 4 bags of personal paper and household records for shredding. It's a great way to safely dispose of old bills with personal information and account numbers.

Who: This recycling event is open to residents of Hamden, Cheshire, Meriden, North Haven, and Wallingford.

What: Electronic Recycling, Paper Shredding limited to 4 bags per household

When: Saturday, Mary 22, 2010 from 9 a.m to 1 p.m.

Where: Hamden Middle School, 2623 Dixwell Avenue, Hamden, Connecticut

Why: Let's keep Connecticut green!

See you there!