Will Prices Go Down More?

Many media and industry experts are saying that the total price drop on the average home in this economic decline will total 35 to 40%. If that's true, there's another big drop to come. I think the wild card is the effect of the stimulus plan. No economic indicators from the past can be entirely accurate when compared to what we are seeing now. Although, IMHO, there is a great deal to criticize about the way in which the government has gone about randomly helping some people and not others, the result is that activity has been propped up through a combination of relief, tax credits, and a moratorium earlier in the year on foreclosures. It's anyone's guess as to what would have happened to the real estate market had those things not occurred, and it's equally unclear what would have happened had the program been rolled out differently, but it IS clear that billions of dollars have been dumped into the economy. No programs from the past have been as sweeping.

Will everything that has been done keep prices from falling as they would have? It's almost like having a shelf over the side of a cliff, where someone who falls off can land, and keep from tumbling further. Here's hoping that the cliff is big enough and sturdy enough for us all to huddle in safety!

Connecticut Commercial Real Estate Now

We had an interesting Commercial Department meeting this morning. One of the agents said that the selection of good commercial properties in our area is the best that it's been in a long time. Well-located, well-priced buildings are now on the market, for buyers who can come up with the financing. Based on what else we are hearing, that may mean that they have to have cash! Even that is not a total bar, as there are many investors around who do have access to cash or capital from others. While some may suggest that it's best to wait until prices fall further, I'm not sure that we know enough about the stimulus plan to know when that will be (or even if it's now!).

Well, it's snowing AGAIN. Since no one buys real estate in the snow, my only question for the rest of the day is whether yoga will be held. Yoga is one of the arrows in a real estate broker's quiver these days--whatever calms you down is good.