Sunday, April 09, 2006

The High-End of the Local Real Estate Mkt...

When I first began my research on the North Country Real Estate Market in Jan 2003, I can remember commenting to a friend that the entire MLS (multiple listing service) contained only 26 properties (land/commercial or residential) priced over $300k (roughly 2.5% of total listings at the time) . Today the total number of properties priced over $300k stands at 177!

With the total number of listings standing at 1,710, this means over 10% of listed properties are now over $300k. I contend that a number of these listings are "Window Sellers" - listing a property for an outrageous sum in the hopes that a developer might bite and give the seller the equivalent of a winning lottery ticket. However, the fact remains that the market in high-end properties (be they commercial, residential or seasonal) has grown dramatically.

Buyers of premium properties in the North Country need to be very careful not to overextend themselves as valuations are getting more difficult at to justify at these levels (speaking in broad terms, of course).

Now, this is a picture worth a 1,000 words - check out this photo from bubble meter it shows a bench near a condo complex in Virginia.

Apparently, there are 220 units in the building and there are 47 lockboxes (lockboxes are used by listing agents to give other agents access to a property without the listing agent having to be present). So 20%+ of these condos are for sale, that's a buyers market.

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