WHAT IS GOING TO HAPPEN?

09.25.08

This is on the minds of all real estate agents throughout New England after the crazy "time" we had last week! One area agent described a "coming new era" in the real estate market where we may have only a "super rich" category who will (hopefully) be buying the most expensive property listings that you see advertised around here.

Everyone else, this agent surmises, will be re-setting themselves to a different level of real estate interest, read "value", at which they might purchase country property. I agree to a point, and in fact think that we, in the NW CT real estate area, will see a new "value structure" for real estate in the coming months.

Out of this comes the following thought: all "developed" real estate will most likely be a better buy than a land purchase with new construction. Materials costs and labor costs would have to come down greatly in order to replicate existing properties' values and short of a land value collapse, I see little hope for building something cheaper than what is already available.

Interest rates should remain very affordable which will help, but unless long term operational/travel costs come down, and stay down, only real estate purchased as a primary home is likely to dominate a key part of our market.

I think this Fall may see some terrific colors. The yellows are already appearing along some roadways. There has been a lot of heavy foliage growth this year and when it turns, it will be wonderful!


©2008 R. Leech features.