Re: new housing equals lower value?

["John Danahy" <JDANAHY@turbonet.com>]

While I am not a realtor, and cannot speak authoritatively, I will say that
the market for the over $200,000 homes has been very flat for many years.
However, this does seem to be changing lately as many homes inside of Moscow
are selling for that price and more.  I suspect that property values, which
have been steady for the last several years will take a considerable jump in
the next couple or years.  Two things may be at work simultaneously.  The
cost of construction may be great enough so those with the wherewithal to
build are buying and remodeling instead and the labor market, affected by
SEL hiring and the recent UI retirements is attracting new upper class to
Moscow.

John

John and Laurie Danahy
jdanahy@turbonet.com
----- Original Message -----
From: bill london <bill_london@hotmail.com>
To: <vision2020@moscow.com>
Sent: Wednesday, July 19, 2000 5:18 PM
Subject: new housing equals lower value?


> I wonder, as new homes pop up like mushrooms all over Moscow, about the
> effect of those new dwellings on the prices for older homes in town.
>
> With all those new houses on the market, have the prices of older homes
> consequently fallen?  It seems like a simple cause and effect, supply and
> demand, kind of relationship.
>
> So, does that mean that the new houses not only result in greater strains
on
> the city infrastructure (more traffic, need for a new sewage treatment
> plant, etc) but in a direct hit on my own family's equity position?  Are
we
> "losing" money as our own house is lowered in value by this booming
> construction cycle?
>
> BL
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