High Hopes for the Mystic Country Economy

A recent article in The Day News Paper quoted an economist as says, “Connecticut housing has become more affordable relative to residents' income, declining from a high of 5.4 times income to a current level of 4.2 times income - still about a point higher than the national average.”
This was a great article and I think that it deserves a look. Click here to view the article. We feel that the Mystic Country portion of CT is extremely unique and must be analyzed independently form the remainder of the state.

Homes selling at 4.2 times income levels are not necessarily a great thing. If we take a look at the Case-Schiller Index which states that equilibrium in a perfect world is 3 times household income then we still have a long way to go. Those figures become much less meaningful in towns where second homes are purchased and not just owner occupied primary residences are used for the calculation.

Many of the towns in the region appear to be close to equilibrium and a couple are actually below the magic number “3”...meaning that bargains exist.
Our next hurdle is the inventory. We must get rid of the inventory so that towns are absorbing the revenue streams from taxes. As soon as the towns are healthy then our budgeting gets cleaned up, schools are not shut down, roads get fixed, and town employees keep their jobs. Unemployment is another topic that warrants discussion.

People then become more confident in our economy and maybe by then the commercial loan debacle that is about to land on our laps is less disastrous. Baby steps are needed to turn things around. Activity breads results.

Tim Bray B.S. Real Estate & Urban Economics (UConn)
Sotheby's International Realty
860-912-7137
tbray@brayconsultants.com

We want to apologize to all the agents in Mystic Country

Entering the realm of Real Estate in South Eastern CT seemed like a natural progression when I moved here from Washington D.C. to be with my wife and her family. After all, growing up in a real estate family has made me passionate about the industry. As a child, I would listen to my father, Les, talk about real estate trends, valuation, spread sheets, and running a business in a moral and ethical way. Real estate was in my blood.

I knew when I entered the profession that it was going to be very difficult to gain traction and be successful over the long term in this industry. Statistics showed that 75% of all realtors leave the industry every 4 years. That was a huge failure rate and I did not want to be part of those statistics.

Early on, my father left his career as a very well known reputable Commercial and Residential Appraiser in Maine to join me in my quest for success. Together, we felt as though we were unstoppable. After all, he had been involved in over a Billion dollars in real estate transactions and I had a degree in real estate & urban economics from the University of CT. We had an edge over all the other agents in the region and we would use that edge to propel us into successful careers.

Looking back….it was scary. Most agents grew up in this region and had a sphere of influence to turn to for work and referrals. We had no one. The only edge we had was our knowledge of the industry, unique backgrounds, and our ability to represent clients to the best of our ability. We pushed our backgrounds to the news papers, bought radio ads, put up a website, and even placed signs on street corners. One of those signs we later learned was placed on the corner of another agent’s property. She was not impressed and rightfully so. We were exploiting our own attributes but at the expense of our reputations amongst peers in the industry. We were striving for a win-lose situation when negotiating with other agents. This was all in the name of giving our clients the best representation possible. Yes, we were gaining traction and quickly excelled to the top percentile in the industry, our clients loved us….but there was a cost. We lost the respect from some very well known and seasoned agents who deserve all the respect in the world. These agents were in the top 25% and had spent many years in the industry perfecting their craft. We want to sincerely apologize to these agents for our arrogance and disrespect.

Our business models are now parallel to Dale Carnegie’s teachings from the early 1900’s. We believe in a win-win philosophy where both parties leave the table feeling good about the transaction. We are here to guide our client’s and give them enough information to make the very best decisions possible. We are not here to exploit the short comings of our fellow agents but to help them become better through our own example.

Bright Spots Appear in a Gloomy Economy

While the economy in Mystic Country slowly recovers from this economic debacle, we look to each other for signs of improvement. We often ask our sphere of influence how business is going and believe that the answer will somehow act as a road sign for what is to come or a litmus test of our own present success level. For some reason there are always a few individuals in each trade who consistently remain busy and the work continues to flow to them like a river to the sea.

I pride myself in working with the best business people in our region. These individuals have not only mastered their craft but they uphold a moral code and desire to do what is right. Have you ever worked with someone who took pride and ownership in their trade? A sincere desire to do their best for others?

Rick Abdow, the founder of Shoreline Sentinel Home Watch,( http://www.shorelinesentinel.com/) is a great example of someone providing a unique, value added service to people who own vacation or summer homes on the Mystic Country Coastline. Many home owners enjoy the spring and summer months dining at our restaurants, shopping in our villages, and bouncing along the coastline in their boats but return to warmer climates during the fall and winter.

Rick provides peace of mind to these people by customizing a plan to make sure that their home remains safe and secure while they are away. Responding to alarms, watering plants, emptying dehumidifiers, assessing damage immediately after a storm and digitally documenting all concerns are just a few of his duties.

Occasionally owners will call Rick at the last minute to say they are coming into town with friends or family. Rick immediately races to the store with a short list including coffee, milk, eggs, flowers, beer and possibly steaks. The temperature of the home is adjusted, fridge is stocked, and boat is ready to go. Rick goes above and beyond to make sure that the owner’s stay is enjoyable.

If you know of a local, reputable, business person (painter, plumber, Dr., Dentist, etc) with traits similar to those of Rick, with an impeccable track record of satisfied clients…please send an email to tbray@brayconsultants.com as I would be happy to supply them with referrals.