Westport and surrounding towns are out performing the national and regional real estate markets as reported by the National Association of Realtors.

Westport Connecticut and surrounding towns Real Estate Market performance Through July, 2010: You can see data and trends at the following link;

Westport and surrounding towns are out performing the national and regional real estate markets as reported by the National Association of Realtors.

On Tuesday August 24, 2010 The National Association of Realtors reported that existing-home sales in the Northeast dropped 29.5 percent in July compared to June and dropped 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.

However, in Westport, sales increased 66% in July compared to June and increased 53% compared to last year. And, the median selling price of houses sold was flat vs. last year.

Westport

Median Selling Price: The median selling price for 2010 YTD thorough July was the same as same period in 2009 ($989,000 vs. $990,000)

Properties sold: The number of properties sold for 2010 YTD thorough July was up significantly from same period in 2009 (222 vs. 134 for 66% increase).

Average days on Market: The average days on market were down slightly in 2010 YTD (104 vs. 122).

Westport and surrounding towns (Westport, Wilton, Weston, Norwalk, Fairfield, Easton, Ridgefield, Redding and Bridgeport)

Median Selling Price: The median selling price for 2010 YTD thorough July was up 12% from the same as same period in 2009 ($408,000 vs. $365,000)

Properties sold: The number of properties sold for 2010 YTD thorough July was up significantly from same period in 2009 (2245 vs. 1877 for 34% increase).

Average days on Market: The average days on market was down slightly in 2010 YTD (105 vs. 108).

Inventory of Properties for Sale in Westport and surrounding towns

On Tuesday August 24, 2010 The National Association of Realtors reported that total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.

However, for Westport, the number of houses and condos for sale in July was 295 an increase of 8% vs. last month and minus 4% since last year. There are 13 months on inventory on the market vs. 19 months of inventory for same period last year.

For Westport and surrounding towns, the number of house and condos for sale in July was 3769 an increase 14% since last month and minus .4% since same month last year. There are 12 months on inventory on the market vs. 16 months of inventory for same period last year.

You can see data and trends at the following links

Www.swreily.com

Stephen Reilly

Higgins Group

Best Practice Real Estate

203-246-7372

swreilly@swreilly.com

Bridgeport Real Estate Market out performs National Market (Treeland, North, Brooklawn, Lake Forest, Beardsley Park)

Bridgeport Real Estate Market out performs National Market (Treeland, North, Brooklawn, Lake Forest, Beardsley Park)

On Tuesday August 24, 2010 the National Association of REALTORS® reported that "existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain."

"Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995."

However, for slected market areas in Bridgeport (Treeland, North, Brooklawn, Lake Forest, Beardsley Park) the Real Estate Market performance was much better.

Properties sold YTD through July, 2010 were up 15% from same period 2009

Properties sold in July, 2010 were down 10% from July 2009

Median selling price was down 3% for period through July, 2010 compared to same period in 2009.

And, Median selling price was down 3% in July, 2010 compared to July, 2009 same period in 2009.

Regards, Steve

Stephen Reilly

Higgins Group

Best Practice Real Estate

278 Post Road East

Westport, CT 06880

203-246-7372

swreilly@swreilly.com

www.swreilly.com

What to do about Fannie and Freddie?

What to do about Fannie and Freddie?

The financail crisis that we have been suffering thorugh since 2008 was started by people buying houses that they couldn't afford and defaulting on their mortgage obligations. Financial organizations were mandated by the federal government to make these loans to provide "affordable housing" and the financial market complied with low down payments, no documentation loans and bogus appraisals. I saw this with my own eyes.

These mortgages were purchased by Fannie Mae and Freddie Mac and when people started to default on the loans, these companies thate were privatelty owned and implicity supported by the federal government, started to losed billions of dollars. This resulted in the government take over in 2008.

Now, the Obama Administration starts a debate this week about what to do about Fannie Mae and Freddie Mac the organizations that support the home mortgage market in the U.S. and continue to lose, and cost US tax payers, billions of dollars. So far, these organizations have needed $148.2 billion in bailout money since late 2008 to stay afloat and now are looking for another $1.8 billion in taxpayer bailout based upon 2010 losses.

What’s at stake is that these two corporations together own or guarantee about half the mortgage debt in America. And what happens to them will affect the ability of the economy and the housing market to recover. It also has big implications for US taxpayers, who could foot even higher bailout bills if the mortgage-insurance business isn't fixed.

The group reviewing option is chaired by Timothy Geithner, Treasury Secretary and Shaun Donovan, Secretary of HUD.

Edward Pinto an ex senior executive of Fannie Mae reported in the WSJ on 8/17 that “what seems to be evolving is a consensus around explicit guarantees of a large portion of mortgage backed securities, a tax on these securities to fund low income housing projects and a requirement that issuers if securities meet affordable housing guidelines.”

He argues that “we will never get a rational mortgage system until the government’s affordable housing mandates are ended.”

In Mr. Pinto’s opinion, “short term policies need to be implemented that promote larger down payments, stricter underwriting standards, reliance on the private sector and private capital and the removal of the affordable housing mandates”.

Let’s hope these people figure out and do the right thing and get government out of the home mortgage business.

Stephen Reilly
Higgins Group
Best Practice Real Estate
203-246-7473
swreilly@swreilly.com

Can’t we learn from our mistakes?

Can’t we learn from our mistakes?

Recently I received an offer for a multi family property that I was selling in Bridgeport Connecticut. The offer included a pre approval letter with 3.5% cash down, guaranteed by the FHA.

At the time I thought to myself that this can’t possibly be a valid offer due to the low down payment. If the market goes down a mere 3.5% the buyer would be under water with no equity in the property, not a good situation.

On research and conversation with the financial institution that was prepared to make the loan, I discovered that this loan was valid and would be guaranteed by the FHA Federal Housing Authority.

The guidelines that you can see at FHA.com are made by mortgage, savings and loan or bank and insured by FHA include primary residence, 1,2,3 or4 family home with a minimum of 3.5% down. The mortgage can be fixer upper or reverse mortgage as well as house in good shape.

Although the FHA has made these loans harder to get, increased premiums for people with a low credit score and allowed less to be used for closing costs, these loans are ultimately backed by the US tax payer.

With foreclosures rising 75% in metro areas in first half 2010, lack of jobs and the FHA’s financial reserve way below what is mandated by Congress, this is another house of cards.

This loan guarantee program sounds very much like what got us into the financial mess that started in 2008 in the first place.

Can’t we learn from our mistakes? Its common knowledge that the recent financial crisis was caused by the Federal Government insisting that financial institutions loan money to people to buy houses that they couldn’t afford. The loans required very little down payment and did not require documentation of earnings. These bad loans were packaged through a financial process called securitization and sold to investors. When the people defaulted on the underlying mortgages the securities were devalued and the banks had bad investments on their books.

This caused the financial crisis of 2008, a market sell off, a lack of confidence, a down turn in the economy and numerous miss guided financial stimulus packages sponsored by the Democratic controlled congress while George Bush was still in office, TARP which was designed to get the bad assets off the ban’s books and the Democratic sweep in 2008 which made things worse through the huge spending binge, specter of higher taxes and an enormous amount of new, business stifling regulations.

Stephen Reilly
Realtor
swreilly@swreilly.com
203-246-7372

How is Westport Connecticut real estate market performing according to Case Shiller

Case Shiller released their monthly real estate market performance for May, 2010 during week of July 26th.

Case Shiller reported that home prices increased nationally in May, 2010 vs April and this was widely reported in the news.

When these report come out I look at how both the NY and Boston Market performed since individula markets can vary from the national averages and these markets reflect how Fairfield County is performing.


The specific numbers are;
Top 10 markets +1.25%
Top 20 markets +1.27%
NY Market +.82%
Boston Market +1.56%

NY market under performing the national market by 30%
Boston market out performed the nationa market by 25%.

Call or email if you want to stay up to date with how the local real estate market is performing.

Steve Reilly
Higgins Group
Best Practice Real Estate
203-246-7372
swreilly@swreilly.com