I was just reading a few days ago in the Wall St. Journal about how investors on Wall St. are starting to invest again in Real Estate via REIT's and new home-builder securities. The rationale is we are most likely at the bottom of the market from a securities investment standpoint and that there is (probably) only upside remaining from these investments. The latest month to month data has new and existing home sales down 4% across most major markets. Many of the buyers I am working with have told me that the reason they are still buying lake property up here while their home markets are relatively soft real estate wise is the increased security of a real estate investment in our market vs. their home market. It seems that the ones with real estate dollars to spend are not willing to spend it on their existing or new home (still wondering if the bottom of the market has occured), however, they don't seem to mind spending it up here because they feel it is more secure (and, historical data illustrates that this is correct). So, perhaps less real estate dollars are being spent, however, when they are, they are being spent up here because of our historical stability and the fact that the buyer's can actually enjoy their real estate investment if made up here!
Chris McGrath
