Cooling Real Estate Market

Will we see a rise in real estate foreclosures. This time last year all those exotic mortgages -- borrowing over 100% of home value or adjustable-rate mortgages, the result, some people are struggling to make their payments, and some aren't making it.

Also, a glut of new property supply, especially the condominium market in Danbury, thousands of new condominiums are getting ready to come to market, just as the market softens. With the new condos coming on line, and the market, at the best of times, can only absorb about 100 per year, this means an estimated 5-7 years of supply will be ready for market in the next year. As interest rates rise and the number of eager new buyers begins to diminish, adding supply to an already slow real estate market for sellers may mean a very good market for buyers and for property investors.

The people who are in the most trouble are flippers -- people who aim to buy low and sell high within a short space of time. Many were buying condominiums off the plans, which means the projects were yet to be built, in the hopes that when the homes were completed, they would sell for a tidy profit. The trouble is many of these flippers, lured into the market by stories of people making a huge killing earlier with a similar strategy, are now the ones to be slaughtered.

In the coming months, we'll see an increase in people dumping real estate they can't afford. They'll be forced to sell because they'll be eaten alive by negative cash flow. Investment properties that you have to feed money to every month -- if you can't afford to the property every month, it eats you.

Over the next couple of years, keep your eyes open for some great bargains But be patient, keep looking at real estate, but keep your hand on your wallet.

Dawn deLemos-Grabover, real estate agent at Keller Williams Realty. My service areas include Candlewood Lake, Ridgefield, CT, & Greater Danbury home of the championship Richter Park Golf Course. Virtually search homes and land locally or nationally from my web page. Or, I can email you weekly updates. I look forward to developing a long-term relationship. Contact me to discuss how I could best assist you. Call me at 203 438-9494 or visit www.SearchHomes-CT.com.

If I can be of any assistance to you when buying or selling your home feel free to contact me mailto:dawng@kw.com. My name is Dawn Grabover and I am with Keller Williams Realty. I service the Northern Fairfield County area with a focus on Danbury, Ridgefield and the beautiful Candlewood Lake Region.