CT Attracts Millionaires, Not First Home Buyers

CNBC reports that Connecticut is the 5th Worst State for Business with the fourth-highest cost of doing business, third-highest cost of living and the nation’s second-worst economy. What’s bad for business is bad for the housing market, and the ripple effect is bad for all citizens.

A newly-wed couple was referred to me in April by the bride’s mother who is a member of my BNI Group. They were First Home Buyers and they had done everything right. Their wedding last fall was conservative so they could save money to buy a home as soon as possible. They set a budget of how much they wanted to spend for their mortgage payment, taxes and insurance. They were Pre-Approved for a mortgage amount, but it was for more than they felt comfortable committing to. They had good credit, good income from their primary jobs, some student loan debt, but still good DTI. They saved every penny from their part-time jobs for a down payment and closing costs. Everything was going great while they narrowed the search for their dream home.
That was until … you guessed it … she got a Pink Slip.  Company says it was due to “lack of work.” She never saw it coming!

Lot’s of broken dreams, lots of tears! Their plans are on hold now while she searches for a new job in an economy where quality employment is hard to find. I hope she finds one soon. If not, that little nest egg is going to get smaller as they struggle to make ends meet over the long haul. I can only wish them well and promise to be here when the future looks brighter.

Now take a moment to think about the ripple effect this one lay-off has on the whole economy. A potential seller loses out on an easy sale to qualified buyers, Realtors, attorneys, home inspectors, appraisers, appliance and furniture stores, yes…even mortgage brokers don’t get a pay check either. 

Just because Connecticut is able to attract millionaires, that doesn't mean does a good job attracting the business that will attract First Home Buyers.