Real Estate Blog

Lowell MA Real Estate

September 23rd, 2008

The mortgage market in the US is in a state of doldrums. With mortgage refinancers Freddie Mac and Fannie Mae financially bankrupt and companies like Lehman Bros. declaring bankruptcy the scope of recovery in US markets looks very uncertain. Real estate is one of the worst effected sectors in this financial crisis. Property prices are falling and people are not making any fresh investments. Even people who have money are not willing to make any fresh investment. With future looking grim and development looking almost static, the growth in real estate will take place only if there are effects taken by the government and the private concerns to bring about stability in the market. People holding properties should not panic and sell, instead they should wait for the prices to stabilize then decide whether they want to sell the property or not.

One of the cities affected by the recessionary condition is the economy is Lowell. It is a small city in Massachusetts, with a population of over a 10 million people. It is the 4th largest city in the commonwealth of Massachusetts. Lowell during the 19th century was a thriving industrial district. It was famous for textile industry, but with the decline in manufacturing sector in the 20th century the city started facing hard times. People migrated to other cities in search for better jobs and improved standard of living.

Today things have changed in Lowell. The city workers are highly computer literate. The average salary is about 40000$ according to the census taken in 2001. There is also a high student population at Lowell. This is because of presence of university of Massachusetts. Enhanced student purchases have lead to the growth of retail market in the city of Lowell. The culture of Lowell is also very diverse because of presence of students from various countries and culture. This provides good form of recreation for the people of Lowell. Lowell is strategically located and provides easy access to points of interest in Massachusetts, New Hampshire and Maine. Lowell is close to 2 airports, one is the Logan Airport in Boston and the second is the Manchester – Boston Regional Airport in Manchester.

There exist good investment opportunities in Lowell. People make investments in residential homes, condominiums, retirement properties, waterfront properties and multifamily investment properties. Even though there is good investment opportunities people do not want to make any investment in the real estate sector.  The price of property is falling by the day people in Lowell are adopting wait and watch policy. The student population in Lowell is high and this provides for a good retail market but still, with the market conditions deteriorating everyday people do not want to make fresh investments. Also the rising price of commodities like oil, steel and concrete is adding to the burden of the builders. The cost of building new complexes is rising by the day and people not willing to pay a higher price for it, this makes it extremely difficult for the builders to start any new development. So unless market conditions improve you will not see any drastic improvement in the skyline of Lowell.

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Entry Filed under: Industry News