Quote:
Originally Posted by skytrekker
Do not accept the concept that real estate only goes up - NAR gave that line and has been proven wrong. The days of rapidly rising prices are over for now, we can only hope that prices do not fall too much in CT.
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This is very true. NAR is looking at the historical trend which is irrelevant to the average homeowner whose frame of reference is usually shorter (7 years on average).
I suggest to all buyer clients that they are the only one who can assess their unique situation. Think of it in terms of "other" investments. A portfolio of a 25-year-old would most likely have a heavier percentage of investments in the "high-risk" category whereas a 55-year-old has probably shifter his/her investments to the "steady, low-yield" options. The analogy implies that a 25-year-old, over time, will see several more real estate cycles. The 55-year-old might want to be more patient.
As an aggregate market, prices in Connecticut are closer to those in 2003/2004. Late 2004/first-half 2005 was the peak. Calendar 2006 saw declines. Calendar 2007 saw mortgage failures and higher inventory levels.
The regional MLS of southwestern Connecticut has, on a scale of 1 - 5 (with 1 being a Buyer's market and 5 being a Seller's market), indicated the market to be a solid 1.
Don't freak out...don't be hasty...but do your homework.
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