When Christopher Fogelstrom and his fiancée, Jessica Humphries, had a chance to buy a home in Enfield’s historic district, it didn’t require a lot of consideration — they jumped at the chance.
“We had been looking for a while,” Fogelstrom said. “If you looked in the $150,000 to $200,000 price range a year before, you got something a lot smaller, or they weren’t in the historic district or a nicer area. We couldn’t believe we were able to get into the historic district. The house appeared to be undervalued.”
The 1,500-square foot, four-bedroom Cape built in the 1950s, surrounded by historic homes, was just what the couple was looking for.
Their bargain offers a window into the residential housing market that was, after all, at the forefront of events that triggered what’s being called The Great Recession. Across the nation, foreclosures are still rising and home prices are just starting to come off the floor, albeit unevenly.
Along the tree-lined Enfield Street, as US 5 is known in Enfield, ‘for sale’ signs dot virtually every block. The town’s appeal hasn’t changed.
“Jessica’s family is originally from Enfield,” Fogelstrom said. “Enfield is just a nice town, an old farm town. It sort of still has that rural, agricultural feel, but there’s this giant commercial center a mile from us.”
But the surrounding economic landscape has changed.
Real estate agents say buyers like Fogelstrom are unique. Only a few are looking to buy an historic property, which more often than not will need some work, and typically is located on a busy, main road like Enfield Street.
Local agents admit that residential real estate along US 5 in Enfield has been hurt by the recession, but a few bright spots indicate there is promise for the future.
“(April) was the biggest month we’ve had in probably two and a half years,” said Bob Alaimo, principal owner of Alaimo and Barile Real Estate in Windsor Locks. “There may have been a rush because of the $8,000 first time homebuyer credit. I think there’s been a lull since that expiration.”
In late May, after the home buyer credit expired, there were nine homes offered for sale on US 5 in Enfield, ranging in size from 1,700 square feet to 3,200 square feet and in price from $161,000 to $369,900. The oldest house was built in 1805. None of the houses was under deposit.
“This has always been a desirable location,” Alaimo said. “These are not typical first-time homebuyer homes — they are move-ups.”
Alaimo said the residential area of Enfield Street, while featuring a wide array of homes of all ages, conditions and sizes, is a reflection of the current housing market in most areas. There have been foreclosures, short sales — in which the homeowner owes more than he’s selling the house for — and homes that have fallen into disrepair. All of these present rare opportunities for the homebuyer looking to buy in such an area.
“Old houses aren’t as popular as they once were, but we have one buyer who looks at every old house that comes on the market,” he said.
“To live on Enfield Street is more nostalgic than it is just to buy a home — it’s being part of the tradition, being part of so much history,” said Greg Heineman, broker owner of Trend 2000 Real Estate of Suffield and Enfield. “A lot of people that I sell homes to want to be part of that tradition. You can’t really put a price on that, versus people looking for the average Enfield home.”
Heineman said the price per square foot for homes in the Enfield area has gone down 10 to 15 percent since 2006, creating a buying opportunity.
“The mint homes and those in better condition are selling,” he said. “Twelve percent of the inventory is short sales, which doesn’t add any value to the market.”
The economy has been a major player in the decision by some homeowners looking to sell their Enfield Street homes.
Brian McDonald, who has owned a 1914 center-staircase colonial on Enfield Street since 1999, also owns property in New Mexico and Arizona. While he still has family in Connecticut, business travel has him spending most of his time out west.
“If I could get there, I’d go back and enjoy it more, but I just don’t have the time,” McDonald said.
McDonald listed his 2,040-square foot, four-bedroom, one-bath home at $245,000.
He used to own rental properties in the Thompsonville section of Enfield, which he sold in 2007.
“Real estate has definitely dramatically changed the last couple of years,” he said. “It used to be that you could use real estate to build a little wealth, and that’s no longer the case. It’s a place to live — they’re not as liquid as they used to be.”
McDonald isn’t in the position where he must sell the Enfield house.
“I put it on the market to see what kind of interest there is,” he said. “If there’s no interest or no offers, I’ll just hold onto it — there’s always next year.”
McDonald said owning three homes — including one he rarely spends time in — just isn’t practical in this economy.
“I used to look at paying your mortgage as a long-term investment,” he said. “I don’t look at it that way anymore. Now it’s more of a practical thing — do I really need it?”
Alaimo said what’s happening with residential real estate now is nothing new.
“This is the fourth time I’ve seen this happen,” he said. “I remember when the interest rates were 18 percent. Every time, the market has come back and it’s come back to a higher level than it has ever been before.”
Heineman agreed.
“I think it’s going to stabilize out, as the inventory diminishes through the interest rates being at four and a half percent,” Heineman said. “Eventually, the surge is going to happen again.”
Real estate agents concur that what’s available on Enfield Street isn’t available in any old town.
“There are only a few places you can buy houses like that around here — stately houses,” Alaimo said. “There’s a niche market for this.”
