In this day and age Americans crave info and we head to the internet to find it. For those that read this blog I hope it is informative for you. LoanClassroom is among many other things a place for people to go and find info on Connecticut, its real estate and mortgage news and its economy. If you are reading this and are moving to the state when you are done reading my article, contact me at Eversley Capital Mortgage LLC and I will be happy to help you with a mortgage for your home purchase.

Now on to the state, Connecticut is comprised up of eight counties. The median home price for the entire state is $236,559 dropping it in the top 10 in the U.S. and the annual family or household median income brings Connecticut in at # 2 in the country. The unemployment rate for the state is presently at 7.3% as of February 2009.

When looking at specific figures on homes in the state I want to point out several that I feel are of importance to know. Just over 70% of the homes in the state are owner occupied. So other than apartment buildings which would be more common in the urban areas of the state such as Waterbury, New Haven, Hartford, Stamford, Bridgeport or Danbury there is not a huge amount of rental opportunity in the suburban or rural areas of the state. A small percentage of homes built before 1939 are still standing, roughly 24%. The main heating source of the homes in Connecticut is oil heat, just over 50% and gas stands at 33% as a main heating source.

Education is important to anyone with children who are re-locating. Connecticut as a whole is the second best educated state in the U.S. it also ranks high with an elementary & secondary school pupil to teacher ratio for grades K-8 of 13.6 pupils for every teacher.  There are 105 private schools in the state grades K-8 and there are 46 colleges and universities.

Connecticut from a size comparison is a quaint and small state. There are only three other states that are smaller in the U.S. The biggest city from a population standpoint is the City of Bridgeport with a population of roughly 140,000. For being such a small state you will find it to be extremely diverse, and when I say that it is not a bad thing and it is hard to explain. For being such a small state it takes on so many different characteristics as you travel through it. From suburban to rural to urban and back to rural and then urban again, well you get my drift. You can dress to the nines and head out as if you were in Manhattan or throw on some boots and heard the cows at farm. I think that the state takes on so many different characters because it borders three very different states. Connecticut borders New York, Rhode Island and Massachusetts.

The close proximity of the three bordering states I feel adds to the characteristics and persona of the state. Living in Connecticut sort of puts you smack dab in the middle of everything. You can head into Manhattan for an evening on the town, you can take a couple hour drive up to Boston, and you can play on the beach along the shore on Connecticut’s large coastline or trek up to Vermont on a short 3-4 hour excursion and ski. As many sights and attractions that there are just over the border of the state there are as many in the state too.

The climate of the state is typical “New England”. A full four season climate with warm summers and cool winters along with breathtaking fall foliage add to the states seasons and characteristics. I have been a lifelong resident of the state and although I have traveled much of the United Sates and had the privilege to experience other states I still feel and enjoy the State of Connecticut as my home and if you are moving here I hope that you will too.

Rent vs. Own is an age old question. And the answer differs depending on where in the country you want to live. Connecticut is LoanClassrooms backyard so a comparison into CT real estate is what we are going to do.

I recently read an article in the local Norwalk Citizen newspaper. It was an article on rents in the Stamford-Norwalk area. It is what intrigued me to do this comparison.  I read the article and thought it was good stuff.

I was shocked to learn that in the entire US the Stamford-Norwalk area of Connecticut now requires the highest hourly wage to be able to afford to rent an apartment. In a recent report from The National Low Income Housing Coalition they detailed a report on hourly wages needed to afford two bedroom apartments by state, county and metropolitan area. The Stamford-Norwalk area was the highest in the country. Danbury Connecticut ranked 8^th. As a state Connecticut was sixth in the country overall.  The study pegged the required annual income at nearly $70,000 a year to rent a two bedroom apartment in Fairfield County based on a monthly rental amount of $1,750.

Now let’s look at what $70,000 would get you if you were looking to buy a home as opposed to rent in Fairfield County. According to Zillow.com the median price for a 2 bedroom single family home in Norwalk, CT is $375,000. Let’s say you have saved enough to put a 10 percent down payment for a purchase. You put down $37,500 for your down payment and take a mortgage for the balance, $337,500. Based on your mortgage payment of principal and interest, your property taxes, your home owners insurance, an interest rate of 4.875% for a 30 year fixed mortgage and applicable mortgage insurance or (PMI) the housing payment is $2,400. To put that in perspective on an income of $70,000 that is pre-tax $5,833 a month. With a mortgage payment of $2,400 that leaves food, utilities, taxes, insurance, cell phone, food, car credit card, general living expenses yet to be paid. Assuming you are in a 28% tax bracket your take home pay less taxes is roughly $4,100. Meaning $1,700 a month needs to cover all the rest. That is living pretty tight. Not impossible but darn tight.

In summary the old question here is rent vs. own and based on the numbers renting for a while might be the answer at that income level and purchase price. Keep in mind we used 10 percent for a down payment. The average median price for a 1 bedroom single family home is $265,500 in Norwalk, CT. So if you want to own and are in that income level buyers market or not you will have to look hard to find something in your price range in Fairfield County. It is understandable why Fairfield County is the highest income requirement to rent in the country.

The snow is gone, the ground is wet and the smell of spring is in the air. That means the Spring Real Estate Market is here. If you are in the market to buy a home you will certainly come across homes that have been foreclosed.  In February there were roughly 291,000 filings alone. Here are some things that you need to know when buying or putting an offer on a foreclosed home.

·         First of all there are several stages of buying a foreclosure. You can actually go to the auction and bid on the house. You need to be aware that the standard requirement is posted in the paper for the down payment. It is typically 10 percent of the estimated value and the funds need to be certified or a cashiers check.

·         If you are the highest bidder and have your funds ready, you have typically 30 days to close on the purchase. Make sure your mortgage is good to go or you could be at risk

·         Aside from going to the auction, nowadays it is more common for the lender to foreclose and then list it with an agent. He takes your offers to buy and works on behalf of the bank or lender.

·         Buyer beware, foreclosure sales are as-is. So if you are putting an offer on a home that was foreclosed and bank owned make sure you get an inspection before-hand. If not you may be in for more than you bargained for.

·         If you are looking at a foreclosure as an investment think long term. This is not a “quick” flip market. Six months minimum, if you know what you are doing you may be able to make a good profit. But the key is being able to hold the property for a while.

·         Often times there are liens or back taxes that are due on foreclosed homes. Have your attorney do a search to make sure that you are not stuck with the previous owners tax debt.

·         Do your homework with the bank or the real estate agent representing the bank to find out depending on where you live if the home was “winterized” before the utilities were turned off. You may also want to make sure the utilities are in working order before buying. Besides most lenders or banks want the utilities in working order before they lend you money for a mortgage anyway. However if by chance that is not the case you should investigate.

If you thought the stories you have heard or read about of the foreclosure ridden states of Florida, Nevada, California and Arizona were isolated and not applicable to Connecticut you were wrong. The foreclosure bus has long been going on in these states. You have read it, seen it on 60 minutes, Dateline, CBS nightly news, you name it they have reported on it. Groves of people hopping on a bus and taking a tour of the areas local foreclosed homes.

That foreclosure bus has now hit Connecticut. Taking a look at the mortgages that defaulted and the homes that are left. In an article in the Connecticut Post, Frank Hoinsky the owner of Hoinsky Realty put together that foreclosure tour. They toured homes in Ansonia and Derby, CT. personally if you are looking for a plethora of foreclosures Bridgeport CT is the state leader. However if I am not mistaken the Derby, Ansonia area is Hoinsky Realtys backyard. It is kind of crazy when you think about. You think that ‘those’ stories only happen in the hardest of hit states in the country and then all of sudden it is in your backyard. If nothing else it reconfirms the fact that the real estate crisis is an all of America problem and not just certain isolated states.

Click here to read the article that was in the Connecticut Post.    CT Foreclosure Bus

The foreclosure tour made its way from Hartford, Connecticut down the shore to New Haven and continued on down to Bridgeport CT. Bridgeport is the heart of the foreclosure crisis in CT.

The U.S. secretary of Housing and Urban Development and U.S. Sen. Chris Dodd toured the three cities of Connecticut. The Housing Development Fund is administering $ 6 million in federal funds to help Bridgeport Ct homeowners and the foreclosure crisis in the city.

As I previously wrote on LoanClassroom Bridgeport CT is ground zero for the state and its foreclosure crisis. Bridgeport alone has seen over 1,000 foreclosures. There was an article in yesterday’s Connecticut Post on Sen. Dodd’s tour. Click here to read the Post article.    CT Post Foreclosure Tour

The term ‘green’ is nothing new. In fact in this day and age it is becoming more and more a common household word. From recycled paper for our printers to recycled paper towels to environmentally friendly cleaning products, I can go on and on. The bottom line is these days we are looking for ways to help the environment.

In an article originally written in the Connecticut Post, Milford Connecticut is one of several communities in our state that are making the push to go ‘green’. There is a proposed adoption pending of a ‘green’ building standard in the town. The goal is to instill more energy efficient and less polluting building materials. For example Stamford Ct has already adopted a program based on the ‘LEED’ (Leadership in Energy and Environmental Design) standard for private buildings and it will take affect by 2011. Here is a link to the CT Post article.  MILFORD CT

Bridgeport, Connecticut nicknamed the “Park City” is ground zero for Fairfield County and the foreclosure crisis. The City of Bridgeport is by population the largest city and urban area in the state. The numbers vary but there are roughly 140,000 residents in the city.

The total number of homes that are in the city are roughly 55,000. Combine the number of current foreclosures and pre-foreclosures in the city which stands at about 1,000 and 2% or 1 in 55 homes in the City of Bridgeport are either in foreclosure or in the beginning filing stages of foreclosure.

In February of 2009 alone there were 375 new foreclosure filings for the city. While Bridgeport Ct is no Detroit MI it is the leader in the State of Connecticut for foreclosures. It is sad to see as Bridgeport itself has so much history behind it. In years past it was a Mecca of the state’s manufacturing business. And all is not bad in Bridgeport there are a lot of beautiful homes still in the city. In the past ten years or so the city has done a complete 360 degree turnaround. It is the central or heart of the city that is the hardest hit. In and around the heart of Bridgeport you will see the abandoned and foreclosed homes boarded up, like the ones below.

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Could this be the week that is the turning point of the financial mess? A fine week it has been. I am not sitting here yelling “bottom”, we have hit “bottom” just yet but the news flow this week has certainly been positive and the markets have proved it.

The Dow Jones Industrial Average started the week out at 7278 and closed yesterday at 7924 rallying nearly 10 percent for the week. A couple surprise earning announcements comingled with some light at the end of the tunnel in the Real Estate world and poof, we have a rally on our hands.

On Monday the report came out that existing home sales were better than expected. The figures reversed course of a downward trend and posted a 5.1 percent increase. The market cheered and on Wednesday new home sales data was released for February and that too rose unexpectedly. The Commerce Department said new home sales rose 4.7 percent to a seasonally adjusted annual rate of 337,000. Forecasts were for a 300,000 figure.

In historical comparison neither the existing or new home sales figures are great. In fact the new home sales figures were down 40 percent from the same month a year earlier and the adjusted annual rate of 337,00 new home sales is the worst on record dating back to 1963. We know all too well that the economy is in a recession and our equity and real estate markets have been in a never ending downward spiral. It is the positive news that we are looking to build on. Personally I do not think we are at bottom yet, for the sake of my livelihood as well as the rest of the country I hope that I am wrong. There are still too many facets of the economy that are in turmoil. The point that needs to be taken from this is positive, if for nothing else it is a relief from the doom and gloom to get a little positive news. It is also a signal that maybe not this week or next but soon we can start to say that we are in recovery and moving in an upward trend. This week shows us that there is light at the end of the tunnel.

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com

When we are in the market to purchase a home we often focus on the basics. You need to secure a mortgage, then you need to find a good Realtor and finally we go out on the joyous journey of finding a place to hang our hat. Seems simple right? Well it does not have to be difficult.

It is true that getting a mortgage that suits your needs is the first step and that will lead you to find a Realtor and start the search to find a home. Those are extremely important and should be first. However we often get wrapped up and enthralled with finding a new home that we do not think of the “other” important things to consider. We will refer to these other things to consider as the “nuts and bolts” of the home purchase.

·         Look for potential red flags in your home inspection.  Most used homes are in some way in need of repair. Minor issues are just that but you need to be cautious of major issues such as major house settlement, foundation cracks, high radon levels, lead paint, underground storage tanks, insects etc.

·         Check out the neighborhood and surrounding area. Look and see what is around your new home. Is a school around the corner? Are there any transfers or dumping stations that could cause a funky odor?

·         When you find a home you will know what the current taxes are on that home. Always check with that town or city tax assessor’s office to see if there are already approved tax increases. Sometimes tax hikes are phased in so checking this out is important. You may also want to see when the last time the town or city had assessed their property values to determine if a new assessment is coming up.

·         If you find yourself looking at a home and envisioning a remodel or addition it is prudent to contact the building department or planning and zoning. You may find out that the home you are looking at is on a variance and no additions can be made.

·         Be aware of the demographics of the neighborhood. Are you buying a cape style home in a neighborhood full of colonial style homes? It may affect your re-sale value in the future

·         Try and get the “history” so to speak of the house. Are the sellers the original owners? How many owners have there been? Asking these questions will also give you an idea as to what changes or renovations have been made to the home.

·         Make a list and anticipated time frames of upgrades or repairs that will need to be done. Will you need to paint the house in the next couple of years? How old is the furnace or the hot water heater? What kind of condition is the central AC unit in? How old is the roof? Is there extra cost associated for upkeep of a pool or Jacuzzi? You need to think of the other expenses that will or may arise soon after buying a home.

·         Take a drive by the home at different times of the day. Depending on where you are buying you may want to see what the traffic situation is. Obviously if you are looking at a home on a cul-de-sac the it is not an issue

·         Last but not least. You need to remember that when you are buyer at some point you are a seller. This is simply enough said. If the home you are looking at has been on the market for a long time look into why? As of now we are in a financial crisis so long listing times are more normal but just keep in mind and inquire if the home has been listed for a long time because we are in a buyer’s market or are your inheriting someone else’s problem?

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com

This map furnished from RealtyTrac highlights the 8 Counties in the State of Connecticut and their respective foreclosure numbers:

The most recent national foreclosure numbers that were released showed a rise of 24% of new filings. Connecticut saw a rise of 34% from the previous month in new foreclosure filings. The two hardest hit counties are Fairfield County which has the highest number of filings statewide and second is New Haven County.

The city of Bridgeport alone saw 375 new foreclosure filings in February alone. The next highest number for a town or city in Fairfield County was Norwalk with 62 and Stamford with 60. The lowest amount of foreclosure properties in the state are in Tolland County with Middlesex County a close second.

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com