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Halted Foreclosures: Positive News for Buyers

All real estate is local is the old adage and while Lower Fairfield County was certainly seriously impacted by the recession, we can say with confidence that in 2010 we turned the corner and have begun the road to recovery, therefore leading the country in that recovery.

Today Fairfield has had  five consecutive quarters of market acceleration, in both number of single family residences sold and dollar sales gains.  The Northeast as a region showed the strongest sales performance of the US in 2010.

Buyers are seeking homes that they perceive to be extraordinary value in order to take advantage of current market conditions.  THE OVERARCHING CONCERN FOR BUYERS TODAY IS VALUE. PRICING is the critical variable in the successful sale of a home today.

Home values in our region remain depressed versus the highs posted in 2005 by 20%-25% (As opposed to the 30%-50% seen in many other areas in the US.).  Therefore with prices down 20%-25% from their high point, excesses have been removed from most segments of the market.

The luxury segment remains the most fragile in all the pricing levels, with many sellers competing for few buyers.  We have seen very expensive homes selling for discounts of up to 50% off the original asking price, particularly homes which can be easily replicated in style and location.  There have been several examples of homes initially listed in the $5,000,000-$$6,000,000 range that have sold in the mid$3,000,000 price range.  Well informed luxury buyers have a strong interest in these homes and  are poised to act when unique opportunities emerge.

What can we look to in 2011?  With interest rates continuing at their historic lows and if the job picture continues to improve, the hope is for a return to optimism.  There is clearly a hint of that optimism which is beginning to pervade the psyche of our country.  With confidence restored, sellers and buyers will move forward on what has traditionally been a fundamental value in our country, home ownership.

 

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