"It depends on who you ask!"

 

 

That is my answer when it comes to people questioning if the market has shifted dramatically. In Metro West, Realtors will tell you it's certainly a different environment than just a few months ago. In the Boston/Brookline area our agents are busy, busy, busy, especially in the luxury market. These are my takeaways after a busy few weeks here...

 

This COULD be the top of the market,

but there are buyers out there.

Click the photo for more information on 15 Howe Street, Wellesley!

There are certain houses that are experiencing all-out bidding wars! Buyers are losing out after offering to pay way over the listing price and throwing hefty deposits down on paper. We have seen them in Cambridge, Boston, Marblehead, and Wellesley. I had one buyer call me with deep regret that he didn't offer asking or above on a property. He was discounting the price based on a correction he predicted for the future. In the end, he missed out on a great house that can't be replicated and was upset. Other homes are not selling after a few weeks and we are seeing price reductions to entice a sale. Hard to pinpoint the pattern just yet- it's spotty in all price ranges. There are record sales and others aren't moving.

 

"My current mortgage rate is so good, why would I ruin that and trade up with a higher rate?"

This is the most common thing I am told by sellers who want a change, but the low cost of staying put is too enticing. In my opinion this will be a key factor for keeping inventory low- preventing a build up which is customary in a down market. What a strange dichotomy to have a struggling housing market because of rates, yet still there are so few homes for sale. Buyers- keep your eye out for a good opportunity and take it! Look at the big picture.

Rent, rent, rent...

In one day I had four people reach out about rentals in our area. Rental prices have not gone down and people are willing to pay them. Investors are still looking for good deals to take advantage of the demand, especially those who can pay cash. They are happy to park their money in real estate as the stock market tumbles. Buyers are willing to wait out the interest rates.

Change the mindset...think 2019 

It was unrealistic for houses to sell in a matter of hours for years. A typical balanced market allows people to be thoughtful in their process and really get to know a house before buying it. This can lead to healthier deals that stay together. We do live in a "blue chip" market though, that people will always want to relocate to, so if there is a downturn the hope is we will not drop as quickly and dramatically as other parts of the country. And guess what, if that happens we will rebound as well. It's all a cycle.

A home is where we live and build our lives,

not a place to always build wealth.

Always look at the big picture. If you lived in your home a long time, do you remember exactly what you paid? I bet you don't! (Thank you Rachel Goldman of MGS for that reminder). What you most likely do remember is raising your family there, holidays, decorating, the good times and the bad. It's the backdrop for our lives. Our primary residence isn't always a wealth building asset.

 

Speaking of wealth I do want to share a notable topic for my Massachusetts readers - politics aside, this will have effects on our homeowners. Question 1, a constitutional amendment on the November 8th ballot, taxes income over $1M at 4%. This will include the profit you make on the sale of your home if it crosses the $1M threshold. You already pay a stamp tax of $4.56 per $1000 of the sale of your home when it closes, and this will be on top of that. As you can imagine the local real estate lobby groups want you to vote "no" on question one.

 

I hope you find this informative. As always, open to discussion. Here are this week's statistics, and as you can see - a healthy number of houses have still gone under agreement and inventory is still low!

 

Have a great week!! 

Are you curious about what your house is worth in this market? I'm always available and more than happy to provide an analysis for you! Email me at teri@teriadler.com or call at 617-306-3642 to schedule a meeting.