The Hammond Real Estate Report

New Haven real estate and properties in the rest of the Connecticut have suffered from frighteningly high foreclosure rates over the recent months.  Luckily, the trend seems to be ending soon.  According to Dan Levy’s Bloomberg article on November 12, 2009, “U.S. foreclosure filings surpassed 300,000 for an eighth straight month as unemployment made it tougher for homeowners to pay their bills.”  Additionally, “rising vacancy rates and the resulting loss of rental income will lead to the reduction of the market values of properties and increase foreclosure rates.”  However, foreclosure filings in Connecticut dropped over twenty-six percent to 2,306.  This positive change brings hope to several homeowners who have watched foreclosure rates increase in nearby New York and Massachusetts as of late.

New Haven homes for sale have maintained a relatively consistent price level despite other areas experiencing price cuts of up to forty-three percent, like in some Floridian neighborhoods. However, New Haven properties have not been immune.  In Daniel Taub’s Bloomberg news report on November 12, 2009, it appears as though more than thirty percent of homes in New Haven have experienced price reductions, although more recent numbers show that price reductions are beginning to taper off as the economy recovers and sellers begin to regain some pricing power.

A large part of real estate in New Haven is dedicated to Yale University’s faculty, staff, and students, and is largely seen as immune to most changes because of the properties’ operational necessity to the school.  Regardless, Yahoo! Real Estate reported 244 foreclosures in New Haven between October and November 2009, selling at a median price of only $139,000.  This price tag is a 0.7 percent drop from the previous month’s median.  The median price for other homes for sale didn’t change.

North Carolina real estate has seen an upswing in real estate activity thanks to the extension of first-time buyer tax credits by the U.S. federal government.  According to David Bracken’s November 6, 2009, article about credit and the housing market, “About 1.42 million U.S. taxpayers have qualified for the credit through August, including nearly 45,000 in North Carolina, according to the Internal Revenue Service.”  The income tax credit is valid for purchase agreements signed by April 30, and closings final by June 30 and can be applied to individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Another victory for real estate in North Carolina on October 26, 2009, when the RealEstateRama newspaper reported that “foreclosure prevention efforts that have helped more than 1,100 North Carolinians save their homes got a boost earlier this month when the North Carolina Housing Finance Agency was awarded an additional $895,350 of federal funds from the National Foreclosure Mitigation Counseling Program.”  The worthy program has ensured that hundreds of families are kept in their homes and given the resources to refinance their homes.  The news article claims that “funds from the earlier grants are expected to provide counseling for more than 14,000 homeowners by year’s end. Of those who have completed counseling, 1,158 are known to have avoided foreclosure and only 40 are known to have been foreclosed on. The third grant is expected to assist 2,800 homeowners by June 2010.”

North Carolina homes for sale dropped in median price in places like Raleigh and Cary but also rose in price and gained value in several places.  David Ranii of the News Observer reported on November 10, 2009, that “the average sale price of existing homes in Durham rose 3.6 percent in the third quarter compared to a year ago, defying the national trend of declining home prices, according to a survey released today by the National Association of Realtors.”