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THE REGISTER CITIZEN
SATURDAY, FEBRUARY 25, 2017
CONNECTICUT
according to data released Wednesday by the trade group Connecticut Realtors. Connecticut’s housing in sales of and the prices Single-family home sales By Luther Turmelle industry got off to a good for single-family homes were up 14.2 percent last
[email protected] start in January, with gains and condominiums sold, month compared to Janu@LutherTurmelle on Twitter ary 2016. There were 2,307 single-family homes sold statewide last month. 182 Birge Park Rd, Unit 1, Harwinton, CT 06791 The median sales price “Because you deserve the best” www.thewashingtonagency.com for single-family homes in
Housing industry off to a good start
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Sandy Marchetti A native to Connecticut, Sandy has worked in the fast paced field of construction for over 30 years. She brings with her a wealth of knowledge and contacts both professionally and personally. Sandy is excited to work in the field of Real Estate to help individuals find their perfect home. She can be reached at 860-482-7044 ext. 122 or by email,
[email protected].
By Michele Lerner The Washington Post WP Bloomberg
CAREER OPPORTUNITY
Currently Recruiting for Experienced and Newly Licensed Realtors to Join our Team. Call to Schedule an Interview!
DAVID L. SARTIRANA BROKER AND OWNER
98 Main Street, Winsted, CT 06098
126 Winsted Road, Torrington, CT 06790
nwctrealty.com
860-379-7245
860-866-1158
New Hartford- Reproduction Cape on a 3.3 acre, lots of sun to raise crops, combo 2-3 stall barn/two car gar & hay loft make this the perfect gentleman’s farm. The home features large EIK w/bay window facing east, formal dining rm, lrg family rm w/ FP. Large master w/ cathedral ceilings. $289,900 David 860-806-0225
Torrington- Charming updated colonial with lovely parquet wood floors. First floor has living rm & dining rm, large laundry rm with sink and shower. Upstairs is large w/totally new bath, 2 sinks, large tub & linen closet. Two car garage, carport and large rear yard. Lots to love. $114,900 Cathy Macias 860-307-6236
Winsted- Solid 3 bedroom colonial located on 1 acre lot in semi rural neighborhood. You get the feeling of being totally secluded. This is a one owner home and will require some cosmetic updating but well worth the effort. $164,900 David 860-806-0225
Torrington- 2 family home with large yard, detached barn/ garage. Replacement windows. Directly across the street from park. Great location. $89,900 Cathy Macias 860-307-6236 Hablo Espanol
Canaan- Perfect starter home or downsizing home on 2.57 acres. 3 bedrooms, 2 1/2 baths, dining rm, living rm with FP and a bonus room & family room in basement with wood stove. $160,000 Tami Reid 860-248-0195
Torrington- Spacious 4-5 bedroom colonial! Updated kitchen, formal dining room, 2 full baths, mudroom, deck, vinyl siding, thermal windows, level lot. Walk to shopping. $138,500 Ellie Peterson 860-309-1547
Canaan- Classic gem on 2.25 acres +/- This home features 4 bedrooms, wide board floors, 2.5 baths & an In-Law apt. The lower level of property features a 20x40 in ground pool, 2 car det. garage. With-in walking distance to town & shopping. $135,000 Tami Reid 860-248-0195
Torrington- New gas furnace Feb 2016, cathedral ceilings, open floor plan, large deck, circular driveway. Square footage does not include spacious family room with fireplace in the lower level. $129,900 Ellie Peterson 860-309-1547
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Winchester- Beautiful 1,500 sqft country Cape on a nice 1.75 acre lot. First flr boasts an open concept w/updated kitchen, FP in dining rm with a large 20x15 living rm along with a modest sized den/family rm. Two spacious bedrooms on the upper level. $174,900 Amy Sartirana 860-605-6217
25 Center St., Winsted (860) 379-2784 www.thedamoreagency.com New Hartford
Most borrowers, whether they are purchasing property or refinancing their home, focus on their mortgage rate and loan terms rather than the type of lender they choose. Yet the landscape of the lending market has shifted dramatically over the past few years from domination by big banks to a market where more loans are made by non-banks - financial institutions that only make loans and do not offer deposit accounts such as a savings account or checking account. “For consumers, it doesn’t really matter whether you get your loan through a bank or a non-bank, although in some ways nonbanks are a little more nimble and can offer more loan products,” said Paul Noring, a managing director of the financial-risk-management practice of Navigant Consulting in Washington, D.C. “The impact is bigger on the housing market overall, because without the non-banks we would be even further behind where we should be in terms of the number of transactions.” In 2011, 50 percent of all new mortgage money was loaned by the three biggest banks in the United States: JPMorgan Chase, Bank of America and Wells Fargo. But by September 2016, the share of loans by these three big banks dropped to 21 percent. At the same time, six of the top 10 largest lenders by volume were non-banks, such as Quicken Loans, loanDepot and PHH Mortgage, compared with just two of the top 10 in 2011. --Before the financial crisis, mortgages were the last thing a consumer would default on, Noring said. “That flipped in 2009, when people started defaulting on their mortgages first,” he said. “That was a tsunami for everyone in the mortgage business, and we’re still seeing the fallout. Lenders were not prepared to deal with it and didn’t do a great job, plus new rules were coming out that they needed to follow.”
your entire business,” he said. In the initial aftermath of the housing crisis and the debacle of loan defaults, banks began to add their own overlays, which are loan-approval guidelines and fees that go beyond the requirements of Fannie Mae and Freddie Mac, said Susan Wachter, a professor of real estate and finance at the Wharton School at the University of Pennsylvania in Philadelphia. Not only have banks reduced their mortgage loan volume, but the entire private market of investors in mortgages disappeared in 2007 and 2008 and, unlike other financial markets, has yet to come back, Wachter said. “The aftermath of the crisis was lots of litigation and a decline in trust across the board,” Wachter said. Banks were forced to pay fines and to take back loans that were considered flawed. At the same time, they were required to meet stress tests and have more capital on their books in case they have to handle more defaults, Wachter said. “Non-banks don’t have to have capital, which could mean that taxpayers are more exposed than in 2009 if numerous defaults take place among loans made by non-banks,” Wachter said. Noring said that nonbanks were more lightly regulated in the initial aftermath of the housing crisis, although in the past two years, regulators have stepped up their scrutiny of these lenders. Non-banks are regulated in every state where they are licensed to provide loans, said David Norris, chief revenue officer for loanDepot in Foothill Ranch, California. “Prior to the financial meltdown, loan-guarantee fees charged by Fannie Mae and Freddie Mac were substantially lower for banks compared to non-banks, but as part of the financial reform, those fees are now similar for all types of lenders,” Norris said. “Now banks and non-banks are competing on a level playing field, which encouraged more non-banks to increase their business.”
New-home sales rise in sign of housing market health By Christpher S. Rugaber AP Economics Writer
Americans bought more new homes in January after a steep falloff the previous month, a sign the housing market WASHINGTON >>
When Buying or Selling… Please Think of us! David and Patricia D’Amore, Brokers Owners MassacHusetts
Awesome Sunsets from this east side Waterfront Home on serene West Hill Pond. This Ranch has 3 bedrooms and absolutely incredible views. Separate Boat house sometimes used as Bunk house for overflow guests. Potential for partial basement to be made into additional living space. Deep water off concrete bulk head with diving board. Easily convert to year round, or build your dream home. Price drastically reduced! $349,900 Call David and Pat D’Amore 860-485-3508
Property includes three sub divided parcels of land equaling 3.58 acres. Center parcel contains 1.26 acres including a 2024 square foot restaurant. Restaurant, Bar equipment and Inventory is included. Outdoor facilities include a covered patio, large fenced in area with horseshoe pits, kids play area, outdoor lighting. Overflow parking is available for large events. Well established family restaurant in business for almost 40 years. High traffic area off a major route to the foothills of the Berkshire Mountains. $325,000 Call Rick Hahn 860-480-0947
wiNcHester
wiNcHester
Extremely Private 45 +/- acres. Pond, Bridge, 2 streams & Stone walls. This Contemporary Cape has Stone & Shingle Exterior and covered porch. Open floor plan with circular center chimney Fireplace. Master suite has balcony loft. Newer heating, Kitchen & Flooring. Hunter’s or nature lover’s paradise. $399,900 Call David & Pat D’Amore 860-485-3508
The withdrawal of banks from the mortgage business is the result of the fundamental shift in regulations that took place in response to the housing crisis, said Meg Burns, managing director of the Collingwood Group, an adviser for financial services companies in D.C. “The regulatory atmosphere changed from a risk-management regime to a zero-tolerance and 100-percent-compliance regime,” Burns said. “Not only were new regulations implemented, but new regulators like the Consumer Financial Protection Bureau were created. At the same time, the CFPB and other agencies became more assertive in their enforcement practices.” Burns said that steppedup regulations from the CFPB include prescriptive rules that pinpoint exactly how lenders are to make loan decisions. “The intent should be to broadly make sure borrowers can repay their loans and sustain homeownership instead of this narrow approach,” Burns said. “In the face of stiff penalties and aggressive scrutiny, banks were left with a tremendous uncertainty and risk that made it hard to keep lending.” Jeffrey Taylor, managing partner of Digital Risk, a provider of mortgage-processing services and risk analytics in Maitland, Florida, said that while the postcrisis regulations were wellintentioned, the result was to make banks more cautious. “Now banks only approve ‘perfect’ loans, not ‘goodenough’ loans,” Taylor said. “This created an opportunity for non-banks that focus entirely on mortgages and are less regulated than big banks.” The cost of complying with new regulations and the risk of making mistakes drove many banks to reduce their mortgage business, said Rick Sharga, chief marketing officer of Ten-X, an online real estate marketplace in Irvine, California. “Headline risk is another element of this, because if the media perceives you’re doing something incorrectly, it can really hurt
FREDDIE MAC WinstedMultiple possibilities on this high visibility, Main St. property. First floor is currently retail, second and third floor have open floor plan. Newer roof, windows and mechanicals. $149,900 Keith Meyer 860-309-9933
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Call Luther Turmelle at 203-680-9388.
Mortgage market is now dominated by non-bank lenders
Wonderful end unit features an open floor plan with 2 BR’s, 1 and a half BA’s, spacious living room with FP and hardwood floors, large private rear deck and a 2 car garage under. Affordable price! $75,000 Call Joanne Donne 860-986-6683
NEW AGENT
riod a year earlier. The total number of condominium sales in Connecticut last month rose by 23.7 percent to 579 units. Connecticut Realtors represents more than 16,500 real estate professionals in the state.
BUYING A HOUSE
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78 Lakeview Rd, Sunday, 2/26 from12-2PM Three BR Colonial with rights to Fall Mountain Lake, within walking distance to private beach area. Open floor plan, hardwood floors, master BR with walk-in closet and bonus room, oversized deck, shed and garden area. $213,999 Call Jenn Fenn x402
January was $235,000, an increase of 2.2 percent, or $5,000, compared to January 2016. The median price indicates that half the homes sold for more and half for less. The median sales price for condominiums in Connecticut for January was $155,000, a 4.4 percent increase over the same pe-
Can be used as In-law or two family. Recently vinyl sided, new roof, replacement windows, exterior doors and interior painting. 2 bedroom apartment / in-law above heated 2 car garage. Main house is 2 story colonial, spacious kitchen and den/bedroom and 2 floor has 2 bedrooms and full bath. Right side is oil fired Boiler, Left side is Propane Warn Air heat. Workshop/utility room off Breezeway. $169,900 Call David and Pat D’Amore 860-485-8602
is healthy despite higher mortgage rates. New home sales rose 3.7 percent to a seasonally-adjusted 555,000, the Commerce Department said Friday. That is 5.5 percent higher than a year ago. Solid job gains and some signs of rising wages have driven up consumer confidence, which has also risen since the presidential election. More confident consumers are more likely to buy homes. Sales of existing homes jumped to their highest level in a decade, according to data released earlier this week. The solid sales have occurred despite, or perhaps because of, a jump in mortgage rates since the fall. Many buyers could be accelerating purchases to get ahead of any further rate increases. Financial markets expect faster growth and higher inflation will flow from President Donald Trump’s tax cuts and deregulation initiatives. That has pushed up interest rates on both the 10-year Treasury note and mortgages. The average 30-year
fixed mortgage rate was 4.16 percent this week, little changed from the previous week. Still, that is up sharply from an average of 3.65 percent all last year. Low mortgage rates and a steady job market have helped the housing market recover from its bubble and bust cycle a decade ago. By some measures, home prices on average nationwide have returned to their pre-recession peaks. Yet homeowners are carrying less debt and have more equity ownership of their homes now than during the bubble, reducing fears of a repeat. A limited supply of homes available has helped push up prices, but there are signs that in the new home market builders may be addressing the problem. There were 265,000 new homes for sale at the end of January, up nearly 11 percent from a year earlier and the most in nearly eight years. Still, more home building is needed to address supply shor tages. T he number of existing homes on the market is near its lowest level since 1999.
