Who's Gonna Buy These Places?

   That's the first question I am asked when I describe the 68 attached housing units proposed by Cherenzia on Mary Hall and Greenhaven roads. The question carries an air of disbelief as well a practical assessment of the local real estate situation.

        A Harvard study published on June 12, 2011, reports that “the U.S. housing market has a very bumpy road to travel ....with millions of owners stuck in homes ... and existing home sales remain[ing] depressed while new home sales continue near record lows.” 

       The article goes on to state that “total housing construction starts were well below 1 million for the third consecutive year in 2010, while completion of single- and multi-family houses was down to 652,000 .... New home sales dropped another 14 percent in 2010 to a low of 323,000, marking the fifth consecutive year of double-digit declines.”

       Local new reflects national news stories.  Patch.com reported July 12, 2011, that there “is currently 18 months of inventory on the ... Stonington market.”  And a headline from The Day in a July 17, 2011, story said: “Region’s home prices stay stuck on low.”  The piece reports that “the bulk of sales consists of foreclosures, short sales and home under $200,000 for first-time buyers.”

Broker Peter A. Harvey wrote a “Feasibility Market Study” for the Cherenzia project in November 2010.  He identified three market segments as potential buyers.