March 23, 2020

Will Covid 19 lead to a CT housing crash?


With growing uncertainty in the world today is Connecticut headed for a housing crash?

 

 

Here are five simple graphs to prove. This time is not like the last time back before the housing bubble burst. Everybody that had a signature had a mortgage. Nowadays, the mortgage companies are much more selective in who they give their pre-qual letters to and that's a good thing. It makes it harder to get a mortgage, but the people that are getting mortgages are actually qualified. The six years leading up to the housing crash, we saw double-digit appreciation on homes. This wasn't a good thing. It was setting us up for a crash. Over the last six years, we've had 5% on average increase. It's been very steady. That's also a good thing. Last time there was an oversupply of inventory. We had 8.2 months worth of homes on the market. Right now, there's 3.1 months' worth of inventory. The lower inventory means less chance of a crash. The last housing bubble burst and scared a lot of people back then. People on average spent 25.4% of their income on their homes. Right now, people are being a little more frugal. They're only spending 14.8% of their income on their house today, much less of a family's monthly income is going towards their mortgage payment.

Leading up to the housing crash. People were using their houses like ATM machines. They were pulling out equity. Any chance they got to the tune of $824 billion worth of equity pulled out from 2005 to 2007 in comparison from 2017 to 2019 us has only pulled out 232 billion worth of equity, just a fraction of what they did the last time. While I agree, it's a scary time. I don't think Connecticut's headed for a housing crash. The economy was doing way too well before this happened. We'll get right back to it. In the meantime, listen to what they're telling you to do. Stay home. Enjoy your family, wash your hands. Practice social distancing, and for the love of God. If you don't need three packs of toilet paper, leave some for your neighbors. Hope to hear from you soon. Let me know if you have any questions.

I'm Dave Jones with Dave Jones Realty. This is CT life. If you're interested in life here in CT, then click subscribe up above. We're here to provide information on all the people, places, and things that make Connecticut awesome.

 

covid 19 in Connecticut

covid 19 in Connecticut

covid 19 in Connecticut

covid 19 in Connecticut

covid 19 in Connecticut

 

 

 

Posted in Market Activity
March 20, 2020

Three Reasons Why This Is Not a Housing Crisis

Three Reasons Why This Is Not a Housing Crisis

Three Reasons Why This Is Not a Housing Crisis | MyKCM

In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.

1. The Market Today Is Vastly Different from 2008

We all remember 2008. This is not 2008. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, excessive equity-tapping, and more – we’re not where we were 12 years ago. None of those factors are in play today. Rest assured, housing is not a catalyst that could spiral us back to that time or place.

According to Danielle Hale, Chief Economist at Realtor.com, if there is a recession:

"It will be different than the Great Recession. Things unraveled pretty quickly, and then the recovery was pretty slow. I would expect this to be milder. There's no dysfunction in the banking system, we don't have many households who are overleveraged with their mortgage payments and are potentially in trouble."

In addition, the Goldman Sachs GDP Forecast released this week indicates that although there is no growth anticipated immediately, gains are forecasted heading into the second half of this year and getting even stronger in early 2021.Three Reasons Why This Is Not a Housing Crisis | MyKCMBoth of these expert sources indicate this is a momentary event in time, not a collapse of the financial industry. It is a drop that will rebound quickly, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years. Although it poses plenty of near-term financial challenges, a potential recession this year is not a repeat of the long-term housing market crash we remember all too well.

2. A Recession Does Not Equal a Housing Crisis

Next, take a look at the past five recessions in U.S. history. Home values actually appreciated in three of them. It is true that they sank by almost 20% during the last recession, but as we’ve identified above, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6% (see below):Three Reasons Why This Is Not a Housing Crisis | MyKCM

3. We Can Be Confident About What We Know

Concerns about the global impact COVID-19 will have on the economy are real. And they’re scary, as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.

According to Bloomberg,

“Several economists made clear that the extent of the economic wreckage will depend on factors such as how long the virus lasts, whether governments will loosen fiscal policy enough and can markets avoid freezing up.”

That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.

The reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. As noted in a recent piece in the New York Times, “Everyone needs someplace to live.” That won’t change.

Bottom Line

Concerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, let’s connect to discuss your needs.

March 18, 2020

Why Connecticut Is THE Place to Live

 

Yo-ho, yo-ho, a CT life for me! Connecticut: the nutmeg state, the constitution state, the place I call home! In this series I’m going to show you why Connecticut is THE place to live. Do you like color tv? How about helicopters? If so, you’ve got the state of Connecticut to thank for those inventions. Alongside those, it is also the birthplace of nuclear submarines and speed limits. 1901 was when the first speed limit was put into place at a whopping 12 miles per hour! 

 

Another claim to fame Connecticut has Louis Lunch in New Haven. Family owned and operated, they are currently one of the oldest, family-run businesses in the country. They are also the birthplace of the hamburger sandwich. They are so committed to serving a classic hamburger that they will refuse to serve it with ketchup, only cheese, onion, and tomato as garnishes. The burger itself is cooked inside a steamer, not a grill, to give it more taste. 

 

Aside from all the delicious food Connecticut has to offer, they also have plenty of outdoor activities to keep you happy and on the move. The most popular being the Farmington Canal Heritage Trail which is 80 miles long. Whether you are a runner, walker, roller blader, skateboarder, or bike, this trail is perfect for you and anyone else with an active lifestyle. 

 

Last, but certainly not least, is the iconic Yale University. This 6% acceptance rate university has 5 presidential alumni and other political leaders such as Hilary Clinton. With 169 cities, Connecticut has a huge variation in house prices. The cheapest area being Waterbury where houses average at $122,000 and the most expensive being in Greenwich, with their houses average $1.35 million. If you’re looking to find the right fit in the right area of Connecticut, I’m your guy! Feel free to reach out to me and be sure to subscribe to stay up to date with all things CT!

March 10, 2020

H.E.A.T.

 

Please join us at Woodland Regional High School located at 135 Back Rimmon Rd. Beacon Falls, CT. on Tuesday March, 10, 2020 from 6P.M. to 7:30P.M. for Heroin and Opioid Awareness Event sponsored by the U.S. Attorney's Heroin Education Team. This event will be educational and is open for anyone to attend.

Posted in Community
March 9, 2020

Greater New Haven St. Patricks Day Parade

WELCOME TO THE 2020 PARADE DAY

The largest single-day spectator event in the state of Connecticut.

The Greater New Haven St. Patrick’s Day Parade, steps off at 1:30 p.m, on Sunday, March 15, 2020.

Posted in Community
March 8, 2020

The 49th Annual Greater Hartford St. Patrick's Day Parade

Come down to the parade route early and get your seat! The parade begins at Capitol Avenue by the State Capitol, takes a left on Main Street, a left on Asylum, a left on Ford Street, and then ends by the Memorial Arch. If you can not make it downtown, the parade will be broadcast live on CW 20 (beginning at 11:30a.m.) on Saturday March 9th, and will be replayed on Fox 61 on St Patrick’s Day, Sunday March 17th at noon. Please note, there will be some road closures along the parade route before the parade. Parking is available in various lots and garages near the XL Center area and Convention Center.

Posted in Community
March 6, 2020

Corned Beef and Cabbage

 

 

 

 

 

 

 

 

 

 

 

 

Place corned beef in large pot or Dutch oven and cover with water. Add the spice packet that came with the corned beef. Cover pot and bring to a boil, then reduce to a simmer. Simmer approximately 50 minutes per pound or until tender.

  1. Add whole potatoes and carrots, and cook until the vegetables are almost tender. Add cabbage and cook for 15 more minutes. Remove meat and let rest 15 minutes.
  2. Place vegetables in a bowl and cover. Add as much broth (cooking liquid reserved in the Dutch oven or large pot) as you want. Slice meat across the grain.
Posted in Community
March 5, 2020

Free First Saturday at the CT Historical Society 2020: Hartford

Free First Saturday at the CT Historical Society 2020: Hartford

 

Saturday, March 7, 2020   9 AM - 5 PM

1 Elizabeth Street, Hartford, CT   Connecticut Historical Museum and Library

From: Connecticut Historical Society

"Free admission to the museum galleries all day. Please note that free admission does not include the Waterman Research Center."

Posted in Community
March 4, 2020

Waterbury AOH St. Patrick's Day Parade

Annual St. Patrick's Day Parade and Open House at the Ancient Order of Hibernians Hall, 91 Golden Hill St., Waterbury, CT. Washington Park. Saturday, MArch 7th 2020 12-6pm

-Dave Jones Realty Events

Posted in Community
Feb. 28, 2020

10 Steps to Buying a Home

10 Steps to Buying a Home [INFOGRAPHIC]

10 Steps to Buying a Home [INFOGRAPHIC] | MyKCM

Some Highlights:

  • If you’re thinking of buying a home and you’re not sure where to start, you’re not alone.
  • Here’s a guide with 10 simple steps to follow in the homebuying process.
  • Be sure to work with a trusted real estate professional to find out the specifics of what to do in your local area.