Interest rates went up again this week, and in December if inflation doesn't cool down we could see the same scenario play out once more. This came as somewhat of a surprise to many who hoped this was the last time the federal reserve would raise them.

Fortunately, real estate experts with sound minds are publishing reports with thoughtful and honest information, despite the headlines in so many newspapers that are reporting doom and gloom!

I try to be a voice of reason each week in order for you to get an honest view into the real estate market. I was recently asked by an organization geared towards executive women in Massachusetts, "what is your superpower?" My answer is simple, I help people see the big picture and achieve their goals. In line with my thinking are predictions for the next five years from the chief economist of the National Association of Realtors, Lawrence Yun. Fortunately, his outlook is upbeat and in line with other experts in the field. Here are his key takeaways.
  • Inventory (the number of houses for sale) is still historically low.
  • Interest rates will continue to rise in the next few months and hover around 7%.
  • Adjustable rate mortgages will become popular again, since they are typically lower than the 30 year loan products.
  • Within two years the rates will come back down to 5%-6%.
  • Prices will remain relatively stable with an increase or decrease in most areas of about 5%. 
  • There will not be a real estate crash. You need an abundance of inventory for that to happen, which we do not have - check out the stats in the chart below.

The luxury tier of the real estate market still seems to be moving forward at a nice pace with quick sales. Since this is a bulk of our inventory in Metro West, the properties we have counted as under agreement are quite impressive. It is the range under $1.5M, and certainly under $1M, which seems most affected by the changing economy. 

A few Fall reminders for you!!

 

  • Don't forget to set your clocks back an hour when you go to sleep on Saturday night.
  • Book your gutter cleaning around Thanksgiving to clear them of leaves and debris. 
  • A fall cleaning of the leaves off your grass should also be on your to-do list.
  • I always change the batteries of my smoke detectors each Halloween, so it gets done!
  • And finally, now is the time to order your turkey for Thanksgiving!!!

Gobble, gobble!! Enjoy the warm weather this weekend. 

Click the links below to check out some of our current listings!

15 Howe Street, Wellesley

91 Dean Road, Weston

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.