[Fredslist] Re: Real Estate Group Meeting

[Brad Aron]

I attended the December 3 Real Estate Group meeting at the Friar's Club.  I rode the circuit as a guest from the Fairfield County Group.  I was very impressed with the friendliness, knowledge and professionalism of the members of this group.  I learned a great deal about the current state of the commercial and residential rental and sale markets in Manhattan.  I enjoyed sharing with people my thoughts and experiences on the condition of the real estate market in the Connecticut.  While it appears the residential market in Manhattan may be experiencing some firmness due to foreign demand there is still a reluctance by banks to lend.  From what I heard at the meeting, many of the sale transactions on the higher end are being done with little or no financing. This cannot bode well for the intermediate to long term health of the real estate market if buyers are not going to be able to obtain bank financing.  In Fairfield County, Connecticut, we have recently seen a little pick up in residential transactions.  Prices have not really seen any increase, and most of the people getting loans are those who either have stellar credit or don't really need to take out a loan to buy a property.  Given the difficulty prospective buyers are encountering in trying to obtain financing, the weak job market and the steady supply of inventory, I expect to see an uneven residential market for the foreseeable future with a rash of foreclosures to continue well into next year.  Banks are going to continue to do what is best for them, shore up their balance sheets, and not what is best for the economy, lend money.  Unfortunately, the federal government gave out TARP money to the banks with little or no stipulations attached, such as the requirement to increase lending.  Banks that have received TARP money, i.e. Bank of America, are trying to pay it all back so they cannot be pressured by the federal government to conduct business in a manner more in line with the economy's interests.  I just hope government comes up with a plan soon that will loosen up credit to enable more qualified prospective buyers of homes to obtain financing.  If something is not in place by the time the tax credit for new home purchases expires at the end of June, 2010, I fear residential markets across the country will further weaken.                   


Brad M. Aron 
Attorney at Law 
180 Post Road East 
Westport, CT 06880 
phone: 203-226-3442 
fax: 203-226-6113 
web: www.bradaronlaw.com
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