We all constantly hear from the media that real estate prices continue to decline. The media doesn’t differentiate between the regions when they report this; because of areas like Arizona, Florida, Nevada and California, the national averages continue to be pulled down.
These areas and others were all affected by exuberance during the boom years, and their large amounts of open space gave way to endless new construction. That new construction resulted in an enormous inventory of homes that became an oversupply when demand dropped, causing the values to plummet.
Because New England has limited space available for new construction that is heavily impacted by environmental considerations and local restrictions, we did not see that level of contruction boom. That is what has kept our real estate losses limited and prices now relatively steady.
I have seen a definite and considerable upswing in sales this year, and certainly no decline in prices. Analysts are predicting stability in New England, and that makes sense. Our real estate market is very different from the rest of the US.
In 2008 I told all of my clients not to buy; that prices would continue to drop. I had no business for over 6 months as a result, but I was right. 2011 is a very different market. Please watch the local trends, not national, to help you decide what’s best for you.
I am a resident of Newburyport and have worked in education, high tech and urban development. My interests in architecture and construction are invaluable to my clients. For more information please visit the Wellsco website.