| Economy: Stubborn unemployment, European Sovereign banking issues, U.S. budget worries and political grid-lock are all threatening a fragile U.S. economy that is struggling to stay out of a double dip recession.
EARLY FALL REAL ESTATE MARKET:: Could finally be bouncing along the bottom price-wise. Buyers are spooky, very selective, and subject to the murkiness of the "Macro Picture." Latin American, Asian and European buyers are showing up again looking to take advantage of favorable currency, lowered prices and decent left-over inventory. Lower end of the market in Westport/Weston seems to be selling better than Median Price Points of $1.5 Million to $3 Million. High end luxury is still going down. |
Stock Market: Very Volatile although surprising resilient considering uncertain "Macro Situation". Commodities have come down lowering inflation fears. Some 'smart money' is shifting gains into Real Estate to profit from perfect storm of low prices, incredibly low interest rates, REOS and foreclosures. |
| Inventory: Some old inventory still hanging on though the best choices are being "picked off" by value-conscious buyers who think the end is here or near. More homes just starting to come on daily, including a slow 'drip' of homes in foreclosure and pre-foreclosure. | |
| Pricing: Nearing or at bottom after 30% +/- correction from 3rd quarter 2005. Flat lining or going up or down another notch is the million dollar question. Buyers will continue to probe for weak links in the market chain. Generationally low interest rates make this an opportunistic time to buy if you have a compelling need. Buyers must have good FICO score, large down payments and secure employment. | |
| Trends: Westport 'Stealing Sales' from surrounding towns. Downsizing across the board. In-town and cul-de-sac living. Pools are in favor. Buying in a good location is totally paramount again together with compelling price. Buyers willing to pay for "luxury" rather than size. Waterfront and waterviews are desirable. Choosy buyers demanding better than "good condition" of potential purchases in all price ranges. Rentals as an alternative to purchase (and rental prices) are likely to continue to rise as sellers of short-sale and foreclosure properties seeking housing expand that market demographic. | |
