Changes are about to occur with FHA in Connecticut and throughout the country, the conditions needing to be met for a condominium complex to be approved for FHA backed financing will change as of Oct. 1, 2009 . Currently, a complex can be on the FHA approval list with 50% of the units having mortgages insured by FHA.  Looking to reduce their risk as the number of loans they have insured in the last 2 years has soared, FHA will now only approve a condominium complex with no more than 30% of the units  having mortgages insured by FHA. 

The FHA website offers a “pre” Oct. 1st approval list and a “post” list – much to my surprise, there are currently no condominium complexes in Connecticut on the “post” list.  I assume that the transfer of information has not been completed yet, but it does give me pause to realize that if a complex was not approved by FHA within the last year, the complex will now have to reapply for approval and I am told that process will take a minimum of 4-6 weeks.

At a recent FHA seminar, the discussion was held that the current list of over 10,000 currently approved condominium complexes will be reduced to 400-500 approved complexes for the entire country.  This is only until the complexes area able to obtain a new approval, but given the new restriction on  30% or less of FHA mortgage insured units, many of these complexes will not be able to overcome that barrier for years to come. 

One of the Attorneys we work with closely has stated that the expectation at the FHA seminar was that only one in 200 currently approved complexes will retain their approved status.  We see many of our first time home buyers buying condominiums under $200,000 and up to $250,000 in the Storrs, Coventry, Glastonbury, Tolland, Manchester, South Windsor , Willington and Vernon areas with an FHA backed mortgage, so some creative challenges will be facing Realtors, sellers and buyers with these new changes.

FHA has become a central player in financing as a buyer can be approved for an FHA backed loan with as little as 3.5% downpayment.  Most banks and lenders are no longer approving loans with a 3.5% downpayment unless it is guaranteed by FHA.

These changes will take place as of October 1st and if you are a buyer or a Realtor with a client  involved in a condo transaction I would strongly encourage you to have the lender get the FHA case number on or before September 30th.

As I listen to buyers and review the offers coming in on homes for sale in the Storrs area,  Tolland County, Windham County and Greater Hartford areas, it does not look  like  home prices have leveled off yet…and one of the indicators we are now seeing of this is the appraisal.

I had an interesting conversation with a loan officer last week who stated that she felt Connecticut property prices in the Storrs, Tolland County and the Windham County areas were starting to go up.  

I was pretty surprised to hear this - and when I asked her why, she said because she is no longer having any problems with homes appraising at the agreed upon sales price. She said, in fact, many appraisals are now coming in OVER the sales price.  This immediately made a bell go off in my head and supported what we have been seeing  in the market: housing prices are still going down.  I even wrote a blog about an appraisal coming in $20,00 above the selling price just a couple of weeks ago. (more…)

How does the School of Engineering at UConn have a positive impact on Storrs Mansfield CT real estate as well as other Greater Hartford towns?  The answer is easy:  The School of Engineering is hiring new faculty members!   So…what  does this mean whan we look at the reports about  the real estate market – does it impact the news we see everyday? 

Just this morning one of our clients emailed me and said “I can’t take it anymore. We’re in a recession, we’re heading out of a recession, it will get worse, it’s getting better…it’s driving me crazy. I don’t know what to do anymore!” (more…)

The Great Hartford Association of Realtors reports that for the second month in a row, pending home sales have risen over this same time period last year.  In May, Connecticut pending home sales in the Greater Hartford region rose 3.54% in comparison to May of 2008.  This includes the regions we work most strongly in - Tolland County, Windham County, Hartford County and CT lake area homes as well as the UConn area.

CT Pending Home Sales: 4 Month Streak

In regards to a short-term comparison of month to month changes, CT real estate continued to show a four month increase in Connecticut pending home sales.   The National Association of Realtors reports that pending homes sales throughout the contry have also continued to rise for the fourth straight month in a row.  (more…)

So, you have moved out of the Mansfield Storrs, CT area and have been renting your home to these very nice tenants.  Life has been good with them! They take good care of your charming home, and they even want to purchase it from you!  Sounds great, right? 

Reality hits, and you discover that they are not qualified to purchase the house. So even though they WANT to buy it, and love the CT lifestyle they have while living in your greater Hartford, CT area home, they simply cannot afford to buy it. (more…)

As greater Hartford area real estate agents, Tom and I deal with home inspection issues on a daily basis. When we navigate and negotiate through this complex part of a Connecticut real estate transaction, I often wonder why home buyers and sellers get so bogged down in this process. 

Real Estate is Emotional

I think the answer is pretty simple – real estate is typically an emotional process.  Remember, we’re dealing with homes (definition: the place in which one’s domestic affections are centered; emotional attachment)  not houses (definition: residence for human beings; no emotional attachment). This is the part of the negotiation where the home seller may be leaving a long loved residence and a buyer may be excited (and yet nervous) about the decision they have made to purchase “this” home.   (more…)

Take a Swing  at Real Estate in CT!

Spring is really in full swing! We sponsor  Mansfield, CT Little League,  AAU Team Connecticut Baseball, and sell a lot of homes throughout the year, but Spring is typically the busiest real estate (and baseball) season. It seems like hundreds of CT kids are swinging bats and yelling “heads up” when the ball goes flying!  The CT real estate market is in full swing, too…and what about the similarity between a pitcher trying to get a batter to take a swing and a home seller “pitching” to a buyer hoping they take a swing!  

CT Real Estate Optimism?

For real estate, we have a cautious and yet optimistic outlook by the National Association of REALTORS economist, Lawrence Yun. He states:  ”Housing affordability conditions have been at historic highs, but now the $8,000 first time buyer tax credit is beginning to impact the market.  Since first-time buyers must finalize their purchases by November 30th to get the credit, we expect greater activity in the months ahead and that should spark more sales by repeat buyers.” (more…)

Will CT Property Taxes Go Down?

Everyone asks me this question, so I thought it would be a good time to discuss it as there seems to be lot of confusion  - the short answer is, unfortunately, no. Lower CT property values do not mean your property taxes will go down.   The value of your home does not determine the budget for the Ct city or town you live in – and the money for the budget needs to be raised no matter what our homes are valued or assessed at.

CT Tax Assessments 

This is the way it works: The  tax assessor of each and every Connecticut town and city is required to list the value of all properties by Oct. 1st of every year. This is called the GRAND list – not sure what is so grand about it, but that is what it is called.  Every year all the new construction is added to the list,  increased home values when additions and improvements are made to are added in, as well as land development, etc.  Even without doing property revaluations, in a busy, upswing economy, this all adds up to a bigger GRAND list.  (more…)

You have a contract on your CT home and are ready to sell, now let’s make sure you get what’s coming to you!

The real estate market surrounding the UConn area is really getting into Spring mode and has been heating up (yes, pun intended)!  Meanwhile, once you have your home under deposit, you’re wondering what happens when the all important bank appraiser comes through and determines the value, right?  Do not fear, we have the answers! Here are the top 7 ways to get the most out of your home appraisal…

1. Make Your Home Presentable - Yes, Even for the Home Appraisal

I know, you have been “on” for way too long – you are tired of showings and do not want to get ready for anything else. PLUS you are trying to pack. Lucky you, now you have to get ready to move and pretend you are not………You don’t have to be able to eat off the floors, but seriously… clean the dishes in the sink, and fold the laundry. I know you would never WANT to show your house this way, but, sometimes life gets hectic and leaving things arond the house will not make a great impression. (more…)

Those Crazy National Association of REALTORS® Guys Are at It Again –  Giving Lots of Stats on Connecticut Housing!

Remember them?  NAR? Whacky, zany guys - who would have thought that the entire National Association of REALTORS® would be so kind as to release reports about housing, just so people like you and I, who live in Connecticut, could read them.  Do you believe it?  Then they give us statistics for the entire country! I mean, who doesn’t love a good housing report, right?

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