2011 Predictions?

Well, we made it to the end of 2010. The question we all have is: “What’s in store for 2011?” We will soon find out, but the only certainty is what happened last year. So, let’s recap what we saw and compare. Unit sales were lower than in 2009 but the average sales price was higher. Overall sales totals by dollars of properties sold were roughly the same. Therefore, a flat market. With these statistics, one can only write a boring article. But here is something to ponder. Ten years from now, the buyers of properties this year may be seen as the intelligent investors. That makes one big assumption - a return to some normal growth in the economy will occur. There are indicators to make one think this will happen, but the past has made everyone cautious about making predictions of better times. Why should you believe that statement about the buyers? Prices have started to stabilize and it seems that is partly due to people having a perceived value of what a particular property is worth. The perceived values and the actual prices are converging to the same number. This is not a perfect science or evaluation of prices, but it seems to be occurring. As the economy in the area (and I include the Massachusetts and Connecticut economies in the “area” label, because so many of our residents work there) recovers to better levels, so will the conviction of buyers to come back into the market. At the same time, sellers will be less likely to move. That will begin the next climbing trend in prices. Then, more people will think about moving and the volumes could rise to past levels. Thus, the start of a new cycle. Looking into the crystal ball, will this trend start in 2011? I'm still looking for that person with the accurate crystal ball.