Wallingford Market Update

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Over the past three months, the Wallingford housing inventory has grown substantially, doubling from 104 single family homes in June to 207 in August; condos have increased also, from 55 in June to 88 in August. While the time on the market for homes has fallen, the increase in the inventory means that buyers have an even larger assortment of homes to choose from and cements the current buyer's market firmly in place. The condo situation seems far out of whack, with the number sold down from 192 in June to only 24 in August. That means there's about a 3 year supply of condos available right now, if they continue to sell at the current pace. We know it sounds wacky, but we double and triple-checked the numbers and they are right. Add to this that they're taking a little longer to sell and we're heading into the traditionally slow Fall market, and condo owners looking to sell may be in for a rough winter. We'll be posting September's figures in a few days, then we'll see if there's been any improvement.

Here are the numbers broken down by single family homes and condos:

Single Family Homes	June 2008	July 2008	August 2008
New Listings	21	48	31
Total Listings	104	169	207
Pending Sales	2	10	19
Homes Sold	35	25	27
Expired Listings	21	14	17
Average Days on Market	98	70	68
Average Price/SqFt	$183	$178	$179
Average Sales Price	$310,706	$312,472	$309,437
Absorption Rate (# of weeks to sell current inventory at present rate of sales)	13	29	33
Condominiums	June 2008	July 2008	August 2008
New Listings	7	17	7
Total Listings	55	78	88
Pending Sales	0	7	16
Condos Sold	16	7	2
Expired Listings	10	7	6
Average Days on Market	108	114	125
Average Price/SqFt	$171	$148	$172
Average Sales Price	$209,508	$199,071	$318,750
Absorption Rate (# of weeks to sell current inventory at present rate of sales)	15	48	191

For the purposes of housing market info, it is usually considered to be a seller’s market when there is less than 13 weeks of inventory on the market; 13-26 weeks of inventory is considered a balanced market, and more than 26 weeks indicates a buyer’s market.

Data used was provided by CTMLS (Connecticut Multiple Listing Service).

Mortgage Rate Update 9/26/08

With all the historic happenings on Wall Street, the interest rates nudged up a bit this week:

Friday, September 26th, 2008

All rate quotes are for a 60-day lock with 0 points

Conforming limits are up to a $417,000 loan limit*


30 yr conforming fixed: rate = 6.125% APR = 6.322%

15 yr conforming fixed: rate = 5.625% APR = 5.881%

7/1 yr conforming ARM: rate = 6.000% APR = 6.245%

5/1 yr conforming ARM: rate = 5.625% APR = 5.889%

30 yr FHA Fixed : rate = 6.000% APR = 5.904%

30 yr CHFA w/ 1 pt : rate = 5.875% APR = 6.146%

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Jumbo loan limits range from $417,001 to $1,000,000*

30 yr jumbo fixed: rate = 6.500% APR = 6.714%

15 yr jumbo fixed: rate = 6.000% APR = 6.226%

7/1 yr jumbo ARM: rate = **** APR = ****

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CHFA (Connecticut Housing Finance Authority) rates for the week of July 14 - 20, 2008:

Homebuyer Mortgage Plan:
Interest rate: 5.875 % (APR range 5.975 - 6.375 %)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term - 30 years, fixed rate

Downpayment Assistance Program (DAP)
(Rate listed is for DAP loans with Homebuyer Mortgage Program financing.)

Interest rate: 5.875 % (APR range 5.975 - 6.375 %)
Fees: Up to $200 Application Fee * Payable to Lender
Term - 30 years, fixed rate

(NOTE: If at any time the interest rate for the Homebuyer Mortgage Program exceeds 6%, the DAP interest rate will be capped at 6%.)

* Additional fees may apply


*Conforming loan limits listed above are for a single-family owner occupied residence.
Courtesy of The Harriman Team and William Raveis Mortgage

*All rates are subject to change. Minimum down payment and credit score requirements may apply.

Wallingford Condo Owners Stunned by Buyout Plans

Move over, Eminent Domain. There's a new sheriff in town making its own waves in the real estate market. It's name is the Common Interest Ownership Act, and it left has the owners of some Wallingford condominiums in a state of shock.

The story started in the first week of August when the owners of units at Parker Place Condominiums in Wallingford received letters in the mail from the law firm of Fasano, Ippolito & Lee in New Haven stating that their clients, 665 Foxon Road, LLC, intended to acquire all of the remaining units in the complex. They currently own 98 of the 120 units. The letter went on to say that, under the Common Interest Ownership Act as adopted by the state of Connecticut in 1976, they had the right to terminate the condominium and purchase all units at fair market value by a vote of 80 percent of the unit owners, which they said they already had. Further, they gave the condo owners until August 15th to reach an agreement with them in order to receive said fair market value.

To say that the 22 residents who received the letter weren't happy would be an understatement. One resident contacted his attorney who told him he had never heard of the Common Interest Ownership Act before. Even Attorney General Richard Blumenthal admits that it's not an easy law to grasp. Section 47-237 of the statute states in part: "...a common interest community may be terminated only by agreement of unit owners of units to which at least eighty per cent of the votes in the association are allocated..." Blumenthal went on to say that the law may not be fair to individual condo owners because it doesn't offer much protection from situations like this, and he plans to raise the issue of reforming the statute in the next legislative session. However, this will most likely not help the residents who are affected by this buyout. Some residents stated that the principal of 665 Foxon Road, LLC, Alex Vigliotti, has been sending them letters for years in an attempt to get them to sell their units to him.

Several of the unit owners were not willing to cede ownership of their condos so easily, and contacted a well-known lawyer to help in the fight to keep their homes. However, the lawyer wanted $50,000-$60,000 up front to take on the case. Not enough residents were interested in paying that much as a retainer, so that avenue was dropped.

Foxon Road has now scheduled a meeting of the condo association for September 23rd, at which time a motion will be presented to terminate the association. Since Foxon Road controls 80% of the units, they certainly have the votes to do so; however, they are willing to make the transition as easy as possible for everyone by allowing residents to stay in their unit until December of 2009, as long as they sign an agreement to sell to Foxon Road by that date. Also, any resident wishing to rent from Foxon Road after that date will be welcome to do so. Still, it's leaving a bad taste in the mouths of the 22 owners who received the letters.

"Would I like to fight?", one resident stated, "yeah, I would. but I can't fight this on my own. I feel terrible".

And so do we. We realize that some of the residents have been there for many years and have not been in a real estate market like we are currently experiencing. Therefore, we would like the owners at Parker Place Condominiums to know that The Harriman Team is prepared to assist them in finding suitable accommodations as quickly as possible. Give us a call at 203-605-3873 and we'll be happy to help.

Mortgage Rate Update 9/12/08

Well, this is the first rate update since the Feds took over Fannie Mae (FNMA) and Freddie Mac (FHLMC). We were hoping for a little bigger cut in the rates, but suppose this will have to do! A good write-up of the takeover can be found on the Wall Street Journal's web site.

Friday, September 12th, 2008

All rate quotes are for a 60-day lock with 0 points

Conforming limits are up to a $417,000 loan limit*


30 yr conforming fixed: rate = 5.875% APR = 6.012%

15 yr conforming fixed: rate = 5.625% APR = 5.881%

7/1 yr conforming ARM: rate = 6.000% APR = 6.245%

5/1 yr conforming ARM: rate = 5.625% APR = 5.889%

30 yr FHA Fixed : rate = 5.750% APR = 5.904%

30 yr CHFA w/ 1 pt : rate = 5.500% APR = 5.772%

-----------------------------------------------------------

Jumbo loan limits range from $417,001 to $1,000,000*

30 yr jumbo fixed: rate = 6.500% APR = 6.714%

15 yr jumbo fixed: rate = 6.000% APR = 6.226%

7/1 yr jumbo ARM: rate = **** APR = ****

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CHFA (Connecticut Housing Finance Authority) rates for the week of July 14 - 20, 2008:

Homebuyer Mortgage Plan:
Interest rate: 5.500 % (APR range 5.600 - 6.000 %)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term - 30 years, fixed rate

Downpayment Assistance Program (DAP)
(Rate listed is for DAP loans with Homebuyer Mortgage Program financing.)

Interest rate: 5.500 % (APR range 5.600 - 6.000 %)
Fees: Up to $200 Application Fee * Payable to Lender
Term - 30 years, fixed rate

(NOTE: If at any time the interest rate for the Homebuyer Mortgage Program exceeds 6%, the DAP interest rate will be capped at 6%.)

* Additional fees may apply


*Conforming loan limits listed above are for a single-family owner occupied residence.
Courtesy of The Harriman Team and William Raveis Mortgage

*All rates are subject to change. Minimum down payment and credit score requirements may apply.

Let the Good Times Start Here!

Wallingford expanded split level with contemporary flair situated on corner lot. Family room has cathedral ceilings, first floor office and bedroom, remodeled kitchen, finished room in lower level included in square footage. Sliders to patio overlooking in-ground pool and fenced yard. This would be a great home for entertaining! Also includes a security system and outbuilding.

Mortgage Rate Update

Friday, September 5th, 2008

All rate quotes are for a 60-day lock with 0 points

Conforming limits are up to a $417,000 loan limit*


30 yr conforming fixed: rate = 6.250% APR = 6.459%

15 yr conforming fixed: rate = 5.750% APR = 5.924%

7/1 yr conforming ARM: rate = 6.125% APR = 6.358%

5/1 yr conforming ARM: rate = 5.875% APR = 6.013%

30 yr FHA Fixed : rate = 6.375% APR = 6.558%

30 yr CHFA w/ 1 pt : rate = 5.750% APR = 6.286%

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Jumbo loan limits range from $417,001 to $1,000,000*

30 yr jumbo fixed: rate = 6.625% APR = 6.860%

15 yr jumbo fixed: rate = 6.125% APR = 6.338%

7/1 yr jumbo ARM: rate = **** APR = ****

---------------------------------------------------------------------------------

CHFA (Connecticut Housing Finance Authority) rates for the week of July 14 - 20, 2008:

Homebuyer Mortgage Plan:
Interest rate: 5.750 % (APR range 5.850 - 6.250 %)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term - 30 years, fixed rate

Downpayment Assistance Program (DAP)
(Rate listed is for DAP loans with Homebuyer Mortgage Program financing.)

Interest rate: 5.750 % (APR range 5.850 - 6.250 %)
Fees: Up to $200 Application Fee * Payable to Lender
Term - 30 years, fixed rate

(NOTE: If at any time the interest rate for the Homebuyer Mortgage Program exceeds 6%, the DAP interest rate will be capped at 6%.)

* Additional fees may apply


*Conforming loan limits listed above are for a single-family owner occupied residence.
Courtesy of The Harriman Team and William Raveis Mortgage

*All rates are subject to change. Minimum down payment and credit score requirements may apply.