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Thursday, September 24, 2020

The Wealth We Create

 I'm astounded at the wealth Catskill Farms generates, near and far.  Real estate commissions on our resales, return on investment for our clients, wages to our employees, traffic for our local businesses in a 90 minute radius, tax for schools and towns, interest to banks, premiums to insurance companies, $1m a month to assorted businesses.  This might not be a big deal in the scheme of things, but in our little pond, it's more than a ripple of impact.

It's even more pronounced now, in this pandemic era, with more liquidity and sales in the marketplace.  Money being made all over the place from our homes, our resales, our marketing.  It's eye-popping actually, even for someone like myself who was aware of the fact beforehand.

What causes me to comment is the relisting of one of my homes that I sold for under $460k now being priced at $850k.  Sure, there is a pool, some stonework, etc...  It's a nice abode for sure, but it's shocking to me on how slim our margins are/were  - it's a tough marketplace and navigated it carefully, but now for it's easy for a broad range of real estate related businesses, and frankly, it's a little disorienting.

But not hard to understand for anyone with a basic understanding of economics - stick 500,000+ new people in a marketplace that only had 100 good homes to begin with, and really the real question is, where will prices plateau, since the imbalance is so extreme, and the buyers so motivated.

Farmhouse 12.

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