The real estate climate out there is complex! If you've been holding out for a correction, you may be waiting for a long time if you want to buy in the Boston area. While the Northeast and Midwest aren't showing signs of slowing any time soon, the Western part of the country is settling in with more of an equilibrium between buyers and sellers. Austin, Texas which made headlines for record prices during the pandemic is making the news again as their market dramatically shifted. "Inventory in Austin continues to run above pre-pandemic levels, putting downward pressure on prices which have fallen to -13.8% below peak, the largest gap of any market", according to Housingwire.com. New England, for the most part, is a different story. Let's get you up to speed!
  • On average nationally in 2023 there are three offers on one property according to the National Association of Realtors
  • I was in a bidding war last week with eight offers this week- topping the national average.
  • The luxury market, notably in Weston is brisk with a median selling price of more than $3M and averaging around 50 days on the market
  • After 12 consecutive months of declines, inflation fell to 3% in June
  • Interest rates stand around 7%- and this seems to be affecting investors, potential second home buyers and sellers the most. 
  • 82% of those who hold a mortgage have one below 5%. This is stopping them from selling and buying real estate at a higher rate.
  • With these groups on the sidelines, it is not helping build up much needed inventory, but at the same time it seems to be preventing any type of housing market collapse.

Some industry experts predict that job losses are the only way to really curb inflation. Others say we may be may be able to avoid that because so many other economic indicators are healthy. Only time will tell.

 

If you want to buy in this market, tie into an adjustable product where the lower interest rate moves in 5 to 10 year, but is lower than a 30 year fixed mortgage right now. The hope is you can most likely refinance in the near future since we are betting that rates will go down again. We may not see 2-3%, but wouldn't you take a 5% rate right now? I know I would! When that happens, prices could rise, but you will have more buying power. See below for this week's numbers which show a healthy amount of properties going under agreement. Have a great weekend!

 

 

I'm always available and more than happy to provide an analysis for you! Email me at teri@mgsgrouprealestate.com or call at 617-306-3642 to schedule a meeting.
 
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