Peggy Chirico ~ Hartford & Tolland County Real Estate Blog: January 2010

Homebuyers and buyers' representatives out there will probably agree that on everyone's (or almost everyone's) wish list is the CUL-DE-SAC.  A favorite of families or soon-to-be families, the cul-de-sac represents the epitome of safety, with images of happy toddlers riding tricycles around the circular end of a neighborhood development.

However, a recent article in the Hartford Courant reported on the possible demise of the cul-de-sac.  Fascinating!  Who would have thunk it?  But apparently there are downsides to cul-de-sacs, and those downsides include the following:

• They contribute to suburban sprawl and a dependence on driving.
• Traffic from cul-de-sacs must turn onto main roads, causing congestion.
• They are less accessible for emergency vehicles.
• Cul-de-sacs are harder to plow in the winter.
• The safety factor is largely a myth.

Some cities, such as Portland, Charlotte, and Austin have banned cul-de-sacs from new development, and Virginia became the first state to strictly limit them.

Read the entire article from the Hartford Courant.  The comments to the article are interesting as well.

With cul-de-sacs falling out of favor, can stainless steel appliances be far behind?

I have been reporting on market statistics for larger towns like Manchester, East Hartford, Vernon, and South Windsor.  In comparison to those towns, Ellington's housing market may seem less active; however, the population of Ellington is about 15,000 (by recent estimates; the new census will provide more accurate information). 

Another factor that seems to have influenced housing activity is the $8,000 first-time homebuyer credit.  In markets that have lower-priced inventory, which most first-time buyers will find easier to qualify for, we saw that the tax credit made an impact.  Ellington doesn't have as many homes in those price ranges, so it limits the numbers of buyers.

According to the town's website, Ellington is conveniently located 15 minutes from Hartford.   Ellington, which was incorporated in 1786, has an agricultural heritage and still has 3,000 acres dedicated to agriculture, making it one of the largest production areas in the state.  Ellington draws people to it for its rural nature, but there are plenty of suburban amenities, town services, housing, and space to attract people. 

In October 2009, there were 11 closed sales with a median price of $340,000 compared with 12 closed sales and a median price of $252,500 in October 2008.

In November 2009, there were 10 closed sales with a median price of $266,500 compared with 11 closed sales and a median price of $294,000 in November 2008.

In December 2009, there were 10 closed sales with a median price of $369,425 compared with 8 closed sales and a median price of $290,450 in December 2008.

Here's the breakdown by price range:

If you are interested in purchasing a home in Ellington, CT, there are currently 79 homes on the market including new construction.  Of those, 45 are over $400,000 and 34 are under $400,000.

If you would like more information about homes in Ellington, CT, please contact me.

If you are like so many of us who promised ourselves that we would eat better, maybe even getting those five servings of fruits and vegetables a day into our diet, you probably know that half the battle is having the food on hand.  If it were, maybe we wouldn't succumb to that "bad snacking" that is so easy to do.

Well, I found a FABULOUS resource to help me keep the promises I made for healthier new me:  ALDI!

ALDI believes that people should have the opportunity to buy the highest quality groceries at the lowest possible prices.  I was lured by their flyer in my Sunday paper advertising fruit prices.  Our store is located on Route 83 in Vernon, CT next to Spare Time Bowling.

Here's what I bought:

• Package of three Romaine hearts
• Bag of flat leaf baby spinach
• Package of four Anjou pears
• Two four pound bags of navel oranges
• A three-pound bag of Granny Smith apples
• A bunch of six bananas
• A whole pineapple

Total cost?  $11.76!!!!!

If you are fortunate enough to have an ALDI near you, check it out.  The fruit and produce was fresh and tasty.  It's definitely making eating healthier much easier.

If you have been reading about the real estate market, it is very difficult to ignore the statistics surrounding the housing market.  It can also be difficult to understand and interpret what is meant when statistics are being reported.

Remember that math class so very long ago when you learned about different types of averages?

For a refresher, there were three types that we all learned:

MEAN: (or what we commonly call AVERAGE):  Add up all the values and divide by the number of items.

MEDIAN:  Arrange all the values in either ascending or descending order and select the one that is exactly in the middle.

MODE:  This is the most frequently occuring value in the range of numbers.

All three types of averages can be useful, depending on the situation.  But in real estate, medians often give a better picture of what is actually going on.  One closed sale at $900,000, for example, can really distort a mainly $200,000 housing market, showing a much higher number than really occurred. 

Here's an example.  Listed below are all the properties that closed in Ellington CT during November 2009:

• 25-28 Green Street                             $100,000
• 27 Elizabeth Street                              $128,000
• 41 North Park Street                            $192,500
• 3 McKnight Circle                                 $210,000
• 44 Ludwig Road                                   $240,000
• 21 Kibbe Road                                    $293,000
• 7 Daisy Lane                                       $400,000
• 1 Jonathan Drive                                  $470,000
• 10 Overlook Pass                                 $620,000
• 2 Monticello Circle                                 $647,301

If we took the average price, it would be $330,080. 

But if we took the median price, it would be $266,500.  That's quite a difference.  And most of the time, the median price will reflect a more accurate picture of what is going on in the market.

Another statistic to be wary of is Days On the Market.  Most of the time, the average DOM is reported, but again that might not show what is really going on.  One stubborn over-priced house that has been on the market for 365 days will skew all the other data.  It may be worthwhile to look at median DOM.

If you would like to know median prices and median days on the market in your area, contact me. I would be glad to provide that information.

For the last several months, my hometown newspaper the Journal Inquirer has printed an ad for a beautiful one-year old dog named Emily. 

According to the ad, Emily is an affectionate, sweet, trained, healthy pit bull mix, and she tore at my heartstrings.  My son has a similar dog (except Brother is male) and he really is so sweet!  I would love to adopt Emily but I have a cat and a dog of my own and I may need to take in another dog.  So everyday, I would hope that the ad wouldn't be there because someone had adopted her.

For a few weeks around the holidays, I noticed that the ad was gone and I was thrilled.  But last week, the ads started again. 

The Sadie Mae Foundation in an animal rescue organization that works to save animals from euthanasia in overcrowded shelters and pounds.  It is a non-profit concern that relies on a small group of volunteers and charitable contributions.  They are vigilant in ensuring that the animals are healthy and placed in suitable homes.

Here is a picture of Emily and her story - she is the featured dog on the right-hand side!

If you have been looking for a pet, would you please consider Emily?

HOW'S THE REAL ESTATE MARKET IN SOUTH WINDSOR, CT?

South Windsor, a town of about 26,000, is an active real estate market, with houses moving fairly quickly, especially in the lower prices.  There is a broad range of housing options, from starter homes to condos to upscale housing.

We have seen, in prior market reports, that 2009 statistics outpaced the same periods of 2008, and this December was no different.

In December 2009, there were 14 closed sales, with a median price of $222,500.  In December 2008, there were 11 closed sales, with a median price of $255,000.  The decrease in median price for this year seems to be a reflection of the first time homebuyers' tax credit that encouraged brisk sales at the lower prices.

If you are one of the many potential homebuyers looking to find your dream home in South Windsor, CT, you will be pleased to know that there are currently 66 properties for sale in South Windsor, CT.

Here is the breakdown for sold properties in December 2009 compared to December 2008 and the available properties by price:

One of my favorite shows on HGTV is Color Splash with David Bromstad, who earned his spot on the network by winning the Design Star challenge.  He is a talented designer who focuses on color when he creates a new look for a room.  His designs are beautiful, he is down-to-earth, he really listens to his clients, and he keeps his ego in check.

But the most interesting aspect of his show is that for each redesign, he paints original artwork for his clients.  I have always thought it would be very cool to just create some kind of original artwork on the spur of the moment to fit into my own decor.

Yesterday, here in Connecticut, was freezing--so cold I didn't want to leave the house.  I had bought a canvas a while ago and just decided that it would be the perfect day to try my hand at painting.  I had watched enough of his shows to absorb a few of his techniques and thought it would be fun to see what would happen.  I knew it would harder than it looked; after all, he is talented and I am not.  But I figured that if I didn't like it, I could just paint over it.  So I got out the paint, some brushes, a small paint roller, and some plastic wrap to remove globs of paint.  I painted the entire canvas with some leftover wall paint, and then dribbed and drabbed paint as the spirit moved me. 

And ta-da....my own original artwork! 

The best thing, however, was that I had been looking at a bare wall in my living room for over a year and could not find anything that would work.  So I hung it.  All in all, a very satisfying day. 

Thank you, David Bromstad!

How's the real estate market in Vernon, CT?  I am often asked that question, so I compiled some results. 

Let's take a look at what has sold in Vernon, CT in December 2009 compared with what has sold in Vernon, CT in December 2008.  What we will see is that the activity was robust compared to the prior year, and just as important, the current market presents a great opportunity for first-time homebuyers as well as repeat buyers.

In December 2009, there were 18 closed sales with a median price of $200,500.  In December 2008, there were 13 closed sales with a median price of $200,000. 

Currently on the market are 93 homes, with 64 priced at under $250,000.  With a few months left for buyers to take advantage of the $8,000 first-time homebuyer tax credit or the $6,500 repeat buyer tax credit, there are plenty of choices if you want to live in Vernon, CT.

Please let me know if you would like information on the homebuyer tax credits, details about properties currently on the market, or information on what your home is worth in today's market. I would be glad to help you!

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Today is the anniversary of my search for my first home--many years ago.  I always remember the date because we waited til the first business day after New Year's Day to start our home search.  We were desperate to get out of the apartment we had been living in, and the holidays just made our desperation worse.

We lived in the middle unit of a three-family home downstairs from the renter from hell.  At first, we tried to ignore the boot-clomping at all hours of the day and night, the never-ending seepage of cigarette smoke through the floors, the overflow of stinky garbage into the hallway, and, worst of all, the shouting matches when the ex showed up.

We hadn't even planned to purchase a home; we loved the freedom of just paying rent and letting someone else do the work.  We traveled whenever we could afford it, and we knew home ownership would cut into some of that freedom.  But a particularly disastrous and very unjoyful holiday week made our decision to buy a house a clear-cut choice.

So a young couple walks into a real estate agency.  Sounds like the start of a joke, and in some ways it was.  Back then, there was no internet and everything was in print in large books.  But we met a very nice agent, talked to him about what we thought we were looking for, and ended up with four houses to look at that day.

The first house was a cape, which felt a little closed in to us, especially since every wall in the entire house was encased in heavy real-wood paneling.  We figured they had stock in a lumber company.

The second house was a ranch that looked fine from the outside, but it reaked of dirty diapers.

The third house was on the corner of two busy streets and had a very steep driveway.  We drove a stick shift and worried about whether the emergency brake would hold.

When we finished with the third house, we were feeling pretty dejected about what we could get for the money in the town of our choice.  As we got back into the car, the agent said the last house on our list was not in the town of our choice (it was just over the line) but it showed very nicely and would give us an idea of what we could get in that town.   At that point, we figured we had nothing to lose. 

The house was on a wide quiet street with mature trees and large lots.  We pulled up to the house and walked to the front door. We were no sooner in the front hall, about to follow the agent up the stairs, when I yanked on my husband's arm and said, "This is the one!"

Long story short, we put an offer in that day, came to agreement by the next day, and closed on March 4.

A lot has happened since then.  And a lot has changed since then.

We were two very naive young buyers in a day when there was no buyer representation (in Connecticut, that came in the late '90s).  We had the advantage of very low home prices, but not much else.

• Back then, a buyer consultation took just the time that was necessary to see if we made enough money to buy a house.
• Back then, even the agents who took buyers to see homes were actually working for the seller.
• Back then, we were not advised to do a home inspection (and we didn't)!  The only negotiation with the seller was for the price.
• Back then, we did not have a property condition disclosure - or we might have known that the driveway, which was covered in snow, needed replacing. Or that a major construction project almost in our backyard was scheduled to begin within the year.  Caveat emptor ruled the day.

But did any of it matter to us? We didn't know any better and we never regretted our decision. But many years later, when I became a Realtor, I realized that it should have been very different.  Fortunately for us, our agent was a very nice man and things worked out, but the system left much to be desired.

I remember this as though it were yesterday.  And when I am working with first-time homebuyers, my own first-time experience is always on my mind.  I want them to know the things I didn't even know enough to ask.

Yes, today's buyers are more savvy because the internet is a great educational tool.  But they also have legislation to protect their interests that weren't even in place twenty years ago.  They have agents who work for the buyer and put the buyer's interest first and foremost; they have mandated property condition disclosures; they have Realtors who ascribe to a Code of Ethics; they have legislation for fair housing, environmental issues, and truth in lending.

But more than this, I also remember the sheer emotion of walking into a house, before even ascending the stairs, and knowing without even seeing the rest of the rooms that this is THE house.  Some things shouldn't change.