Forecasting the Real Estate Market for the CT River Valley is a tenuous task at best. To do this we must first look back on what has happened in the past 36 months. Reviewing the real estate sales market for this 36 mos period revealed that the real estate market declined by an average of approximately 1/2% per month for approximately 26+/- mos till the last quarter of 2010 when the market showed signs of stabilization. Current market conditions appear to have stabilized in most areas of the CT River Valley and are projected to remain so for the next 6 to 12 mos. Interest rates are still at all time lows with rates beginning to fluctuate in the upward direction during the last few months. I expect interest rates to begin a slow climb into the 5 to 6% range by summer 2011 end and remain in the range for an extended period till the economic recovery fully takes hold. From a residential appraisal perspective, most work is expected to be refinance and equity loans with sales work slowly increasing during the spring/summer time frame. A full housing market recovery is not expected to take place till 2012 when most foreclosures will have been processed and removed from the market scene.
If my firm can be of any service for your appraisal needs, please drop my office a phone call or email. I look forward to serving my clients needs for the upcoming year and wish everyone a happy and prosperous new year.
Brian Paul Lessard, IFA
Thank you, we'll be in touch!