Eastman Community Affordability

A few questions were put in front of me this am and I will try to answer them as best I can.

First I would like to say that home and condo prices are dropping everywhere. Prices in Eastman may have declined seemingly more than some other local areas and that may be true. I believe that there is more direct competition in the smaller radius of Eastman compared to other towns. Look at the size of Enfield, it’s about 52 square miles, New London is 25.6 square miles. Even though New London has the same amount of homes for sale the distance between them is far greater than homes in Eastman. This is one of the reasons New London’s home sales are down so much over the last few years. Prices have not declined as much and until they do New London will see a slow housing market.

The Buy In Fee: I do not believe the buy in fee has much affect on buyers. As stated before, buyers know that fee exists well before they drive into Eastman. If buyers are afraid of the buy in fee, they usually don’t show up.

The Annual Assessment: This cost does equate to about $40,000 in mortgage money. Using today’s interest rates and financing a home, an Eastman buyer paying $250,000 for a home in the community can for the same monthly outlay pay $290,000. So, yes I do believe the annual assessment does influence prices of homes.

Something else to consider is the cost of land. I believe that the cost of land in Eastman is so low that it dramatically reduces the over all cost of a home. Keeping the cost per square foot lower than if you built in New London or other surrounding towns. Considering a lower initial cost leads to a lower re-sale value. I think this idea gets left out at lot during many “value” discussions.