Wallingford Market Update July 2009

The Wallingford housing market continues to improve, albeit modestly. The number of houses sold in July rose by only 10% over June, but they sold over 62% faster than last month. This resulted in inventory levels reaching a new low for the year at 5 weeks. As in Meriden, it appears that first time home buyers may be leaving their mark as more and more make a move to take advantage of the $8000 tax credit, set to expire at the end of November.

Condo sales improved dramatically. Sales rose by 63%, bettering last month’s performance, and the time these condos stayed on the market declined to just 50 days, a 67% improvement over June. This resulted in inventory levels reaching another low point for the year at 8 weeks worth, almost half of last month’s levels and nearly 70% lower than May. As we head into Labor Day and the beginning of the Fall market, it will be interesting to see if the market is able to sustain these kinds of numbers. There may be a flurry of activity in September and October as people scramble to get under contract for the sake of the tax credit, but passage of an extension to the credit may negate that rush, since people will feel less pressured to act quickly.

We said this last month, but it bears repeating: The deadline to take advantage of the $8000 tax credit for first time home buyers is fast approaching. There are only 90 days until the credit expires on November 30 and, since closings typically take place from 4-6 weeks after a contract has been signed, prospective home buyers should be looking to have a home under contract no later than October 15th to ensure closing prior to the expiration of the credit. Short sale and foreclosure purchases should be under contract even sooner, as those can and often do take longer than 4-6 weeks to complete. There is still hope for the expanded $15,000 tax credit to make it through Congress, but you should not hold off buying a home waiting for that to happen as interest rates could be negatively impacted in the meantime. If you’re a first-time home buyer, the time is now to decide if you’re going to take the plunge or not.

Here’s the comparison of the last three months:

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 the CTMLS (Connecticut Multiple Listing Service).

Tagged as: 06492, market update, real estate, Wallingford