Does Connecticut real estate present the best real estate investing opportunities for late 2012 and 2013?
A Bloomberg article recently slammed Connecticut real estate in Fairhaven as some of the biggest losers from the recent fall out on Wall Street but as the market improves CT homes could actually prove some of the biggest winners for investors.
Connecticut real estate; the good, the bad and the highly-profitable…
CT posted the country’s second biggest jump in foreclosure notices and bank repossessions in July 2012 and some point to failing Wall Street as a concern for homeowners struggling to keep up with their home loan payments in the state.
It is true that the market has seen some continued dips in home prices and listing prices however, what most forget is that the state stayed strong longer than a lot of the rest of the country and didn’t see as large fluctuations as Florida or California. In other words we are simply lagging behind what is being seen in other states by a few months.
This is great news for real estate investors who have found markets in Miami, Phoenix and Sacramento too hot and competitive and who are searching for cities which are ripe for picking up great bargains to be flipped as local real estate catches up with the rebound.
Connecticut real estate is actually far better positioned than most imagine. Home purchases using conventional mortgages are up 8.4% for the first half of 2012 showing a market full of financially healthy individuals who can qualify for loans. Wall Street bonuses may have dipped 13% last year to an average of $121,150. However, with the median home sales price in New Haven, CT at just $130,000 according to Trulia, that’s plenty to buy a home for cash. The real tell of the direction of the market is home sales volume and according to the Bloomberg report volume is up 11% in the second quarter of 2012 and according to Trulia home sales are up 14.1% in New Haven year-over-year.
In other words; homes are selling faster, homes are affordable, there are plenty of qualified buyers and while there are many discounted homes to scoop up now we can expect a rapid uptick in home values in the near future. These are the perfect conditions for flipping houses and for the buy and hold crowd there is a great rental market too.
Just wait till after the election and end of year bonus time and watch for the numbers to skyrocket for Connecticut real estate.