Submitted by [deleted] t3_ytzv8o in Connecticut
SouthOrangeJuice t1_iw77t1v wrote
Do you want to be near the water? That's an absolutely beautiful house, but the location isn't all that close to the ocean, relatively speaking, for Westbrook. At that price point, many want and can easily be within steps to the ocean. However, that home closer to the beach would be 2-3x that purchase price.
Another question to ask your realtor - did they do any updates in the last year to justify doubling the asking price from when it sold in February 2021? The listing doesn't mention this and judging by the kitchen, I'm assuming the answer is no. The market is way up, sure, but nearly doubling asking price in ~20 months, without significant upgrades, seems extreme.
Touchyfeelycomponent t1_iw7beod wrote
My thoughts exactly. But the house next door sold for comparable price. It’s very strange that this house sold for so much less 1.5 years ago.
Frequent_Jelly_4138 t1_iw87uds wrote
That’s not strange at all. The housing market is skyrocketing right now. I sold a house two years ago and it’s back on the market for 500k more than I sold it for with zero reno
Touchyfeelycomponent t1_iwbd5tv wrote
I thought this market was going down now due to rates. Not sure where it is.
Frequent_Jelly_4138 t1_iwbiq7v wrote
Noooo rates are going up making construction expensive limiting the supply.
Touchyfeelycomponent t1_iwbrn1h wrote
ugh. but more expensive for buyers of homes as well. complicated stuff.
SouthOrangeJuice t1_iwc7j4h wrote
Values are going down now, from the peak a couple months back, sure. Rates have dipped back below 7%.
Home prices fell in September on a month-to-month basis for the third month in a row, though the decline wasn’t as steep as in July and August. While prices usually drop from summer to fall due to the seasonal slowdown, they fell much more sharply than usual in 2022.
Prices are now down 2.6% since the end of June, which is the first three-month drop since late 2018 and the steepest such drop since the financial crisis of early 2009.
Touchyfeelycomponent t1_iwcgfvm wrote
Interesting. I’m thinking maybe a 5 to 10 per cent drop is possible but I’m buying long term so prob ok. Still if rates go way down prices may reverse.
SouthOrangeJuice t1_iwc6x42 wrote
It's relative though. If you sold your home for 2M and it's now selling for 2.5M, that's not surprising. If you sold for 500K and it's now selling for 1M, without any reno, that is unusual, for CT at least. The average home value has not doubled in 20 months, more in the range of 20-40%.
Touchyfeelycomponent t1_iw7clxn wrote
No need to be on water
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