FOLLOW THE MONEY

FOLLOW THE MONEY
SOUTHEASTERN CONNECTICUT DISCOVERED

Recession, sub-prime meltdown, foreclosures, real estate values plummeting. (Sound familiar?) Many people are waiting for the bottom to fall out before they make a move…especially with regards to the purchase and sale of real estate. Unfortunately, the Mystic Country portion of CT is lumped in with national statistics that don’t account for the local activity. Here are two compelling reasons for a different perspective.

New Retail Construction
Frequently analysts will point to activity within the retail sector of a region to forecast the economic health of that market. As a rule of thumb, we can follow patterns of growth in an area by looking at the amount of retail space currently under construction in comparison to surrounding areas. In particular, we can look at the big box stores such as Wal-Mart, Lowes, & Home Depot who hire firms to predict the feasibility of a store and the likelihood that the store will thrive. Are you aware that the majority of retail space currently under construction in this state (not including Fairfield County) is being built right here in our backyard?

Approvals have been obtained to develop 73.7% of the study area (CT – Fairfield County) or 1,322,272 square feet of retail space with more than 800,000 square feet pre-leased. Preliminary to these approvals, very expensive studies were commissioned. (This does not include casino expansions, the Preston state hospital proposal, the Norwich hotel proposal or the “Gateway” proposal in East Lyme).

Homes Selling for $750,000+
The number of people purchasing homes with sale prices greater than $750,000 rose 22% in 2007 over 2006 in New London County while sales in the 6 communities along Long Island Sound rose 28% with Stonington leading the charge at 71%. These buyers typically have significant personal assets and they are demonstrating a confidence in this market and its future.

Now Is The Time To Invest in Southeastern Connecticut
Look to the future like the investors do. Most investors use the less active real estate markets to position themselves for the future.