Throughout most of Connecticut currently you will find more people interested in purchasing homes than in selling them. This is a typical condition for most of the country, and is common when there is a recession. When home values take a nose dive, owners are more likely to hold onto their investments until they can get a little better turnaround. There is not much said about Connecticut commercial real estate and how the current economy has affected it.
The trends of the commercial real estate market in Connecticut and the rest of the country vary to some degree on the industry. While some industries may be growing and expanding, others are downsizing. With the potential for growth comes a greater need for commercial real estate properties. One trend that is reducing the demand for more commercial real estate is outsourcing. When a cell phone company decides to add a thousand customer service representatives to better serve their customers, they no longer have to worry about building offices to house them all. Instead the jobs are outsourced to an overseas location. This cuts costs for the company in terms of labor but also eliminates the need for physical expansion, i.e. more commercial real estate.
Much of eastern Connecticut is experiencing a dip in their real estate market, especially for those trying to real estate. This affects the commercial real estate market to an extent, but will most greatly affect the residential side. Such is the case in Newtown CT and its surrounding areas. This is not to say that homes are not selling or available for purchase, because the prevalence of homes for sale is there. The fact that the average home price is currently $475,000 leads one to believe that even in a recession this area will most likely be just fine.
Central Connecticut, such as Hartford, Bloomfield and other cities are also responding well to the recent real estate market changes. Since last year home prices are down just around 5%, with a continued decline to be expected. For current home owners, this is hardly a devastating tragedy. Anyone who has owned their home for five years or more has seen the value increase exponentially so that a decrease of 5% would not spoil much of the profits if they were to sell today. For anyone currently in the market for a home, the price decreases could be beneficial and substantial in many situations.
The economy and the real estate market as a whole continues to change on a regular basis throughout the country. Those people closest to the bottom of the income earnings will always feel a hit harder than someone that has never had to worry about money in their lives. The vast majority of the citizens are somewhere between those categories and will be affected by the changing real estate market in one way or another. Some parts of Connecticut will continue to rise in price while others will take a hit. Some areas will see a steeper decline than others, which is present in the commercial real estate market as well as the residential sector. Like the rest of the country Connecticut is expected to weather this blip on the economic radar and keep going.
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