There is only good news to report for homebuyers in Eastern Connecticut, as conditions continue to improve from a buyer’s perspective. Interest rates remain very favorable and there are many mortgage options available, allowing buyers to purchase a home with little or no money down. In even better news for buyers, inventory in Eastern Connecticut has increased 35% over a year ago, giving buyers more choices than they have had in over 5 years. But while there are plenty of homes to choose from, prices have not changed significantly over last year, as prices dropped slightly in some towns and not at all in others. For home sellers in Eastern Connecticut, after a 40% increase in area home prices over the previous 3 years, the market has readjusted. Increased inventory and lower demand means homes must be priced better and be in superior condition than the competition. What should also be important to today’s home seller, is hiring a real estate agent who has the experience of a down market. According to the National Association of Realtors®, over 50% of their membership has been in the business 4 years or less. As reported in an article in CNN Money “Buyers and sellers are negotiating this rapidly changing market with the advice and guidance of agents who may not be terribly familiar with the current landscape.” Experience does matter, now more than ever. What’s in the future? I’ve read numerous predictions. While none of the predictions are doom and gloom, none are particularly rosy. The number of sales should continue to drop slightly and prices should stay flat in 2007. These predictions assume a continuation of favorable interest rates and some area job gains. The Mohegan Sun and Foxwoods Resort Casino are embarking on 700 million dollar expansions which should lead to job gains in the area. And while the Utopia Studios proposal appears to have gone bust, the property remains prime for development and there are already suitors waiting in the wings. A comprehensive State of the Market Report will be available January 31st. Please contact me to reserve your copy. | 
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