Movements in the real estate market are very closely correlated to the economy as a whole. I think that as a major component of the US economy, the real estate segment will lag behind a general recovery at first and then lead the way to better times for all. Although many residential transactions are valued based on existing market conditions, most buyers and sellers are really motivated by life changes such as births and deaths, divorce, job transfers and more. Since life goes on even in a tough economy, I see that there is a lot of pent up demand for buying and selling homes and as soon as people feel a bit better about the economy, we’ll see a surge in activity and stability in prices.

This is certainly true in the areas that I practice real estate including Ridgefield, Redding, Danbury, Newtown, Stamford, Norwalk, Wilton and the rest of Fairfield County.