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        <title>Seaport Advisory</title>
        <link>https://www.seaportre.com/blog/2023-07/</link>
        <description>Data-driven real estate insights, valuation, and strategy across Southeastern CT and Southern RI. Research-backed guidance for buyers, sellers, and investors.</description>
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    <guid>https://www.seaportre.com/blog/a-father-son-voyage-creating-media-for-vanquish-boats.html</guid>
    <link>https://www.seaportre.com/blog/a-father-son-voyage-creating-media-for-vanquish-boats.html</link>
        <author>tbray@seaportre.com (Tim Bray)</author>
        <title>A Father-Son Voyage Creating Media for Vanquish Boats</title>
    <description> <![CDATA[ 






 



We at Seaport frequently receive requests to assist in producing videos for neighboring enterprises. We take great pleasure in lending our support however we can. In the attached video, you'll see how my son Christian and I collaborated with Colony Video to generate media content for Vanquish Boats, a company based in New Port, Rhode Island. Not only was this a fantastic opportunity to strengthen our father-son bond, but it was also an incredibly fun experience.
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    <pubDate>Wed, 26 Jul 2023 05:22:00 -0400</pubDate>
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    <guid>https://www.seaportre.com/blog/seaport-market-analysis-report.html</guid>
    <link>https://www.seaportre.com/blog/seaport-market-analysis-report.html</link>
        <title>New London County Market Report</title>
    <description> <![CDATA[ 
Think creatively and look for opportunities - State of the market for new buyers in New London County


It is no secret that the housing market is in a tough situation right now. The problem is that the majority of Americans, no matter where they live, cannot afford to buy a home in the cities or towns in which they work. Why is that the truth? Looking back on the market, the selling price, along with the price per square foot, were at all-time highs just before the financial crisis in 2008. 








These all-time highs eventually dropped to all-time lows around 2015, before they started to slowly climb back up. Then, we had a global pandemic that decided to take a slow climb and accelerate at an exponential pace, and the slope of median selling prices skyrocketed. Additionally, we are currently experiencing a period in which mortgage interest rates are at 7, an extremely high level we have not experienced in the past twenty years. Right now, both selling prices are high, as well as interest rates, which is unlike the norm. Usually in the housing market when home prices increase, interest rates decrease. This time it is different, as we have all-time highs in both categories. Now this isn’t to say that we are going to have a housing market crash similar to 2008; however, we should expect some kind of drop within the next couple of years. The economy can not handle prices continuing to rise. As can be seen in the graphs below, for those making the median household income in a town, the median household selling price of homes is completely out of reach. 


This is particularly true in Lyme, Old Lyme, and Stonington. Moreover, the cost per square foot is continuing to increase for properties in Lyme and Old Lyme, although it appears somewhat more stable in Stonington when comparing rates from 2022 to 2023.  In contrast, the median cost of homes sold in Bozrah and Griswold have declined in the past six months compared to 2022.





You might ask, how do we solve this problem?  The first thing to consider is where you can get the most space for your money. When looking at New London county, the most affordable towns are Franklin, Salem, and Lisbon. When approaching a home purchase, you need to consider how much money you need to have to get into these towns. When using the median household income as a guide, it will be necessary to be able to put at least 15 down to have any discretionary income left, but more realistically, it would be advisable to put down at least 30 to 40 in order to afford other basic expenses.  


It is also important to recognize that listing prices are not necessarily equivalent to the selling price.  There has been a consistent trend dating back to 2000 of the median listing price being higher than the median selling price. Although this pattern has been disrupted following the onset of the global COVID-19 pandemic, Lisbon and Preston continue to average a lower sales price than listing price.


In addition, another portion of the decision for affordability will be shaped by the mill rate (tax rate) for the area. For example, if the median selling price in one town is exceeding the median household income, and that the town has a higher mill rate, it will not be a reasonable choice compared to an area with a lower mill rate. For example, Lisbon (22.23) and Franklin (22.97) have a relatively lower mill rate compared with Salem (28.80). 






 

Another thing to consider when choosing a location is the number of homes that are currently available. For example, in Franklin, Lisbon, and Salem, there are currently 14 homes for sale on the market across all three cities, with 35.7 below $400,000. In addition, the typical median house across these three cities have these attributes: 3 beds, 3 baths, 1,987 square feet, 2.09 acres, and built in the 1980s.  


For first time homebuyers, it is essential to think creatively. This includes potential first time home buying incentives, particularly for those with low- to moderate-income levels.  For example, New London is a targeted area by the Connecticut Housing Finance Authority (CHFA).  This means that families of 3 or more people who earn $167,300 or less may be eligible for a reduced interest rate on a mortgage for a home of $588,100 or less  (https://www.chfa.org/homebuyers/chfa-resource-map-target-areas/). In addition, even individuals with less than stellar credit ratings (i.e., 500-579) may still qualify for an FHA loan if they can put at least 10 down.  Many are reporting that individuals can get approved at higher ratios than seen in the recent past.  


It is also important to consider other ways that conditions for FHA loans can be modified.  For example, the front-end ratio, or the ratio of debt based on mortgage payment, taxes, insurance, and mortgage insurance premium (MIP) to an individual’s gross monthly income usually has to be no more than 31 for individuals with credit ratings of 500-579, but this can be increased to 33 to 45 when purchasing an energy efficient home with an FHA loan.  Similarly, there are compensating factors that can apply when looking at the back-end ratio (or total debt to income ratio) for FHA loans.  Although the maximum back-end ratio is typically 43, this can go up to 50 if there are two or more compensating factors (i.e., high credit score, cash reserves, no credit card debt, other sources of income, etc.). These factors will strengthen your buying power, which may open up other options.


In addition to considerations for traditional mortgages, buyers may want to consider other potential resources.  Are there other sources for a down payment, such as loans from family members?  Can someone serve as a cosigner for the mortgage? Does the property have rental potential, where a portion of the space could be rented to offset the cost? Another solution may be to buy land or a lot initially, and then work to build a home in a second phase.   


No matter what, there is some hope and light in some areas for your first home. For example, Lisbon remains a more realistic option for affordability and is within a 30 minute drive to New London or 40 minutes to Hartford. There are always positives depending on how you look at the situation. It's just a matter of having a well-thought out understanding of the market, being honest about the finances involved, and working diligently to find opportunities. With a knowledgeable agent at Seaport Real Estate Services, you can be confident that we can help locate the most affordable towns. We have additional resources available that allow us to effectively locate affordable towns given someone’s. 

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    <pubDate>Mon, 24 Jul 2023 00:03:00 -0400</pubDate>
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    <guid>https://www.seaportre.com/blog/harmony-of-luxury-and-wilderness-the-ultimate-riverside-estate-experience.html</guid>
    <link>https://www.seaportre.com/blog/harmony-of-luxury-and-wilderness-the-ultimate-riverside-estate-experience.html</link>
        <author>tbray@seaportre.com (Tim Bray)</author>
        <title>Harmony of Luxury and Wilderness: The Ultimate Riverside Estate Experience</title>
    <description> <![CDATA[ 




Crafted by an acclaimed housewright using the highest quality materials and bespoke finishes throughout, this remarkable estate is tucked away amidst the pristine wilderness that borders the tranquil Lieutenant River. It offers an unparalleled level of privacy and tranquility, with a rich tapestry of birdlife. The meticulously maintained grounds comprise formal gardens enveloped by woodlands, with no other signs of human habitation in sight – save for the occasional kayaker drifting by.


While this estate provides a haven for wildlife enthusiasts, its location is also convenient, being a mere seven-minute drive to grocery stores and I95 Exit 70, making it the perfect choice for commuters or city residents seeking the security of a second home. The estate's architectural style blends traditional elements with contemporary features, marked by lofty ceilings, large windows that offer views reminiscent of American Impressionist artworks, and open, light-filled spaces.


This exceptional residence emanates a palpable sense of elegance and sophistication. Its design offers a harmonious blend of modern aesthetics and the beauty of the surrounding natural environment. The carefully designed layout includes spacious rooms, ideally suited for multigenerational living, hosting weekend guests, and elegant entertaining, with ample discreet space for all.


Situated within a private association, just two miles from the town's cultural heart – including the Griswold Museum, Old Lyme Inn, Side Door Jazz Club, Lyme Academy of Art, Studio 80 Sculpture Garden, and the venue for Musical Masterworks – this serene oasis boasts friendly neighbors and easy access to cultural activities for all age groups.


This refined property offers luxurious living spaces and a sophisticated lifestyle set against the unmatched natural beauty of a tranquil riverfront backdrop. Please, take a moment to explore more about this exquisite property through our property packet.


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    <pubDate>Fri, 21 Jul 2023 12:26:00 -0400</pubDate>
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