Regardless of the area of the state of Connecticut from the New York metropolitan area on the west of the state and are the most densely populated in Connecticut to the eastern most counties. Connecticut has experienced a down turn in real estate values similar to all other states in the US. Counties such as New London County and Windham County which are much less populated compared to the New York Metro Counties of Fairfield County, Hartfield and New Haven have not been spared the repercussions of the global economic slowdown.
Connecticut has the second highest home prices in the United States after California with 3.3% of all homes valued at over 1 million dollars. This difference in home prices is reflective of the pay scale of a number of residence in Connecticut actually working in New York and commuting to the less populated and more family oriented Connecticut for their residence. This also gives Connecticut the distinction of being the state with the 4th highest household income in the country.
The commuters may chose to retreat to Connecticut after work but there is no escaping the ravaging that has hit the housing market. Connecticut is a big draw to New Yorkers and this is part of the reason that the real estate market in Connecticut has been such as strong market in years past and will be again once the market corrects itself. Until such time however New Yorkers trying to escape some of the Nations highest taxes look to be moving out of not just new York but the entire New York Metropolitan area. Connecticut residence see only slight reductions in taxes as Connecticut ranks 3rd highest in the nation for tax burdens. New York is one of few states that have actually seen a decrease in population while Connecticut, long since the refuge of the wealthy New Yorker is currently experiencing a similar population shift. The total population growth of Connecticut is one of the lowest in the nation with an increase of .4 percent. With a growth rate of less than half of a percent has Connecticut ranking 40th of the 50 states. This very slow growth can be attributed to several things, high taxes, a dense population and lack of opportunity.
Not only are taxes high in Connecticut but throughout the entire region with New York, New Jersey and Connecticut all ranking in the top five of all states in the nation. This is one of the main contributors that have caused the flight of thousands of wealthy citizens and those that strive to become wealthy in search of states that do not have such punitive tax policies. (see Florida). Population density is a leading indicator of opportunity for real estate speculators and investors but the average cost per home in Connecticut puts home ownership out of reach of many. The historic high prices of homes in the state has only recently been good news for homebuyers as Connecticut currently ranks #8 for the number of foreclosed homes per housing unit. Ranking eight when combined with abnormally high taxes, high population density indicates Great opportunity for those who can see it. More pointedly, if you are in Connecticut and you are not in foreclosure, you should be buying foreclosure homes. Buy medium priced, moderate foreclosures. This opportunity may never present itself again in our lifetimes.
As home values continue to reset themselves in Connecticut from their highs of the pre 2008 bubble caused by the mortgage crisis smart investors are taking advantage of the depressed market and buying foreclosures at prices that are below anything seen in the state for decades. Real Estate prices are forecast to be at their lowest point by the third quarter of 2012. Before the prices are completely corrected and the market has stabilized is the best time to make as many real estate investments as possible. Trying to time the market perfectly will leave the tentative home-buyers out of the sweet spot of the market. The prices of homes in Connecticut will continue to be affected by the number of and frequency of homes being foreclosed upon.
Unemployment in Connecticut is slightly lower than the rest of the country at 9.1%, which is another good indicator of real estate opportunities. In states like Nevada it can be risky where the joblessness is resting in the 14 percentile. But in a state that has lower than average unemployment the rebound will be seen earlier and therefore the real estate market also will see a speedier recovery.
This lower percentage of unemployment does not mean that Connecticut is without a glut of foreclosures and opportunities for those looking at buying a Connecticut foreclosure listings. Every price range, every county and city has been hit and will continue to feel the repercussions from the depressed real estate market, albeit at a lower overall percentage than the nation overall.
Connecticut foreclosure buying opportunities will continue as interest rates adjust on thousands of sub-prime mortgages that were taken on homes while downward pricing pressure eliminates the possibility of refinancing. Experts agree that this perfect storm of foreclosures will increase over the next several years.
You should be buying foreclosure homes now! It may take two or three years to see the incredible upswing that will take place but it will as it always has.
Particular cities that show the best short term upswing are Bridgeport, Hartford, New Haven, Stamford, Waterbury, Norwalk, Danbury and New Britain. These cities are high in population count, have several different price ranges and have industries that support the populations secondary buyers and renters.
Read more about how to buy foreclosures and educate yourself on the communities you are most interested in buying a foreclosure and start shopping here for the foreclosure home that meets your needs. If you are facing a pending foreclosure call a local real estate professional and determine what types of options you have. Your options will depend on your particular situation. Other variables in Connecticut include where a home is located, density of that areas population, which can vary greatly in Connecticut, how much is owed on the home and how much the particular home is worth in today's market. Real Estate markets in Fairfield, Hartford, New Haven and New London appear to be the most stable in the state with some pockets of depression in each but with an average price which is more stable than the national average.
Q. Does the higher number of foreclosures mean that there are too many homes already for the population?
A. No, Connecticut has been and will continue to be a destination for others from outside the state and has its own strong economic base. Residence will always need homes and a good investment today in a down market will result in a better upswing in the future.
Q. Has the average home in Connecticut lost more of its value than in other places?
A. Slightly, and this is good news as the real estate market continues to improve an investment today will reap higher rewards in the near future. Recent initiatives have also created an environment which has placed the majority of the blame on the banks and removed the financial stigma of being foreclosed on. Thus we will see more foreclosures until the employment improves nationally and locally.
Q. Why would Connecticut be more affected by the mortgage crisis?
A. With a higher than average income, the fourth most densely populated state in the country, Connecticut is a smaller pond that feels the ripples, both negatively and positively more quickly than almost any other state. Buying foreclosure real estate now will prove to be an incredibly wise thing to have done in 18 to 24 months.Search Connecticut foreclosure listings