Closing Conducted by: | Attorneys |
Conveyance: | Warranty Deed |
Primary Foreclosure Method: | Judicial |
Process Period: | 5 - 6 months |
Notice of Sale: | Court |
Redemption Period: | Court Determined |
Income Tax: | 3.0% - 6.99% |
Corporate Tax: | 9% |
Sales Tax: | 6.35% |
Estate Tax: | 7.2% - 12% |
Inheritance Tax: | No |
Median Property Tax: | 1.63% |
Property Taxes by County: | http://www.tax-rates.org/connecticut/property-tax#Counties |
Closing Cost: | $2,555 |
Transfer Fee: | Transfer fee 0.75% up to $800K; 1.25% of value over $800K |
Origination Fee: | $1,885.00 |
Median Home Value: $326,124
1-Year Appreciation Rate: +20.7%
New Listings (Second Quarter): 16,220 (+19.8% year over year)
Number Of Sales (Second Quarter): 11,139 (+23.7% year over year)
Average Days On Market (Second Quarter): 43 (-42.7% year over year)
Median Listing Price (Second Quarter): $319,000 (+16.0% year over year)
Average Sales Price (Second Quarter): $513,113 (+29.9% year over year)
Median Rent Price: $1,486 (+11.9% year over year)
Price-To-Rent Ratio: 18.28
Unemployment Rate: 7.2% (latest estimate by the Bureau Of Labor Statistics)
Population: 3,605,944 (latest estimate by the U.S. Census Bureau)
Median Household Income: $73,781 (latest estimate by the U.S. Census Bureau)
Foreclosure Filings In First Half Of 2021: 836 (-69.5% year over year)
Studio: $1,009
1-Bedroom: $1,221
2-Bedroom: $1,550
3-Bedroom: $1,782
4-Bedroom: $2,194
Tax Lien or Deed: Tax Deed Sale with Right of Redemption
Interest Rate: 18% after Tax Deed sale
Redemption Period: 6 months after Tax Deed sale
At 2.84%, interest rates on 30-year fixed-rate mortgages are attractively low. Today's lower borrowing costs may simultaneously offset higher acquisition costs and help Connecticut real estate investors increase monthly cash flow from properties placed in operations. If for nothing else, the less investors have to pay in monthly mortgage payments, the more they can keep from their rent checks.
Inventory levels are lower than ever, and competition is making it increasingly difficult to own, even for those who can afford to buy. As a result, more people in Connecticut will be relegated to the renter pool, which decreases the risk of vacancies. Perhaps even more importantly, the resulting demand will allow real estate investors in Connecticut to increase rental prices.
The latest increase in home prices has made it more challenging to flip real estate. Acquisition prices are growing to the point that they are detracting from profit margins.
The local market will build on recent momentum: For the better part of a decade, the Connecticut real estate market has trailed behind national trends. While not quite stagnant, progress has been made slower than the rest of the country. However, as the calendar gets closer to turning over to 2022, there is a heightened sense of momentum in the market. In particular, the Connecticut real estate market appears to benefit from a high volume of buyers and sellers. It is officially safe to assume real estate in Connecticut will see a lot more activity than in years past.
Foreclosure activity will increase: While government aid and forbearance programs have significantly decreased foreclosure filings in the last year, they are set to expire soon. Therefore, it's safe to assume that filings will increase in the Connecticut real estate market once landlords collect past due rents.
Home values will increase: The Connecticut real estate market is well below healthy inventory levels. As a result, demand will continue driving prices higher, just as it has for the last 12 months.