West Hartford CT

CarolandChris,

What a great town.  Good schools, blueblack, and great architecture (alot of variety in styles).  You're absolutely right in my mind in terms of LT appreciation.  FYI, you'll see as you read these postings that alot of the most 'intense' discussions involve CA, FL, and other areas that were hit the hardest by the bubble.  So, not surprised if you're saying just some depreciation in your area, rather than the bottom completely falling out.  I'm of the opinion, after way too much reading on this stuff, that this market isn't going to turnaround until 2010 (some say 2011).  But I'm a pessimist. 

Buying and selling will be based on your circumstances, which I don't fully follow (are you a current homeowner? renter?).  Problem with selling now is it's a downward spiral.  To get an offer, you need to beat the comps.  To beat the comps you lower your price relative to the other guy and sell.  But of course...you're the new comp for the next guy!  And so the cycle repeats.  Nothing you don't know I'm sure.

Some analysts are predicting a bottoming of the market by Dec 2008.  But even so, you're looking at a "U-shaped" recovery.  Hence the 2010 timeframe for any real increases in value.  Either way, if no rush, then wait.  Hate to say it...but spring 2010.  (ouch).   As a buyer you can afford to.  (You're looking AT LEAST another year of very sluggish demand).  As a seller, you're buried in inventory and as you'll see on these threads, there are alot of folks looking for a bargain.  I can't blame them, but it's not going to be my house.

I bought my house in 2006, the worst time. And over paid with a mortgage I could hardly afford. That's a story for another day. I put work into it and it was darling. But when I realized what I had done and spent most of my cash and I needed to spend more I decided in 2007 to either sell or rent. One school of thought was to sell, cut my losses and move on. The other school of thought was to turn it into a "business" as rental property and hold on...and that is what I chose. Of course since 2007 I have lost another $10,000 to $12,000 of my equity. I still have some left but not much. I should have sold in 2007. Now I have renters and the house pays for itself.  When I turned it into rental property, I moved to my parents to save. So I have been saving, but my quality of life is horrible and my savings just offset my losses. So I am no better off. If I had sold in 2007 and taken the cash and added to what I have saved, I would be looking for a small manageable and affordable condo this year. So the question is what to do moving forward. It's all very emotional. Living at my parents until 2010 at 52 years old is not much of a life. And in 2010, as the value of my house goes up, so does the cost of my little condo. Its a vicious cycle.

OK, then maybe consider a sale in spring 2009.  My thinking is that at least you are not as likely to be selling at what some say is the absolute trough (Dec 08).  More demand for properties in the spring too, obviously.  Go to afew realtors now and get appraisals for your property.  Do this again as you approach March '09.  By "some" equity, I'm assuming it's at least $15K to $20K.  That should give you some margin to avoid a loss over the next 6 months.  If possible, plan on buying a condo AFTER you close on your existing home.  Thought here is operating 'trough to trough' since you mention concern of being priced out of a home.  As unhappy as you no doubt are, those renters are buying you a bit of time, so do your research and take your time.  Know that you'll probably be out of there by next spring and back on your own terms.  I do sympathize.  Tough to swallow at mid-life.  West Hartford is a beautiful place.  Hang in there and best of luck to you.

carol, look on the bright side, you are socking away money.

Yes, I am lucky to have the opportunity to sock my money away, but if I had sold in 2007 and grabbed some cash even at a loss and saved and saved this year, I would be one of those cash buyers without a property to sell now, with the option to continue to save and save until I found the perfect place. Now I have some cash, but my house holds the unknown rest of it...so my plan to be a home owner bombed and my plan to be a landlord bombed...it's been financial quicksand, this time I have to get it right before I end up with nothing! This market is not for the weak of heart.

Yeah, I sympathize.  My place has lost $100K from it's peak.  Since you are understandably concerned about waiting, how about getting afew realtors in there to appraise the place and put it on the market now.  If it doesn't move in the next few months - for a price you are OK with, then you can pull it and relist in the Spring.  I would be careful with how this impacts your renters unless they are plentiful in WH.  You don't want them to be alienated and move out when their lease expires, if you haven't sold yet. 

One thing you can do if you list, is make sure any showings are grouped around a specific timeframe to minimize disruption.  You can also promise them that sale to closing will be at least 3 months and if needbe you'll pay first month's rent elsewhere.  Focusing alot on the renters here, but you don't want to lose them if they're your mortgage lifeline.  If you can't wait to get out of your property, and you price it competitively at the FIRST listing, I think you are not making some lifelong mistake.  As I mentioned in my earlier post, you are probably looking at a fairly long timeframe to get back to the gravy in terms of home appreciation.  So, I don't see you selling it in the next 6-9 months and then missing out on a significant uptick in prices soon thereafter.  So, talk to a realtor for some local advice, and you might also talk to your tax assessor.  I've found they are a great resource for home values and trends - and they have no skin in the game (commission).  Good luck carolandchris.

You are so helpful and supportive. Many people just don't get it. If I were 32 I might play it out, but I'm 52. Another problem I have is a lease with the tenants. It is up in July 09. I don't think selling the house makes the lease null and void. At his point to be done with it and break even would be a plus as all I do is worry, I just don't sleep at night. Yesterday I went there to do some work and just started to cry. I wanted to take the keys to the bank and just hand them over. The house is in good shape, but any little thing costs money. The other option is to just list in the spring and not renew in July 09. If it didn't sell, I could move back in a refix it up with fresh paint etc and play it out that way. At least I would be back in West Hartford and have saved some money. Maybe I should just have the conversation with them. Poor you having lost $100,000. I would just be sick. They aren't going to like it as living in the house for three years was a specific goal oriented plan for them. My third choice, waiting it out the three years and save and save and move back in then then refinance the loan and have an affordable mortgage.

Yeah, try not to let it get you down.  As bad as it can be, you're still here!!  Don't feel too bad for me, either.  I still have equity, it's just that if I had sold at the peak in 2006, as originally planned, I'd have a $100K profit before taxes.  Good luck to you.  Keep checking the boards for advice.  If you can handle the occaisional rude flame from a doomer, you'll find alot of smart folks here looking to help.

Thanks...I was so not paying attention! I shouldn't have bought it then should have sold it! Where do you live, in Connecticut? I will never be more happy the day that house is gone, if it doesn't kill me first.

West Hartford will continue to do well. The 5 most preferred towns in Hartford county and the ones that have been most immune to the national real estate decline are W Hartford, Avon, Farmington, Glastonbury, and Simsbury. 

Rob 

You're an agent with listings in West Hartford...what do you see as the trend? What would you do if you were me? A W Hartford agent said she thought prices were headed up in the spring? If yes, do you think they will continue you? What's your gut feeling? Thank You.