Don't buy your primary home thinking it's a money-maker! High prices coupled with lofty mortgage rates plus closing costs make this market the least affordable and hardest to break into in decades. That means it will take you longer than in the past to recoup those costs and break even. This is according to an article posted by Yahoo and Zillow.

I always caution buyers not to think of their purchase as an investment, but as a place to seek comfort, relax, and build memories. About three years ago, that narrative flipped of course. Cashing in for big profits became the primary motivation to sell understandably. If you didn't need to buy a property on the other end of the equation that made excellent financial sense.

"New homebuyers can expect to spend about 13.5 years in their house before breaking even on their investment," Nicole Bachaud, a senior economist at Zillow, wrote in the report released Monday. Zillow’s analysis took into account typical and forecasted home value increases based on the Zillow Home Value Index, assumptions for closing costs, agent fees at the time of sale, maintenance costs, and interest payments." This was based on July's sales statistics. Interesting point. Hard to make a blanket statement as different geographical areas will react differently. I think metro areas such as Boston and emerging markets will still show growth.

If this plays out and it takes time to break even, it is not enough to halt markets since making money isn't the main reason people buy homes. They are typically motivated to improve their quality of life, are switching jobs, trading up or down or experiencing a change in their family structure. That said, buying can still benefit you financially by helping you build long-term wealth through equity and ultimately appreciation. 


Thank you to everyone who sent me notes, excited by the encouraging economic news. NAR's chief economist, Lawrence Yun, recently shared his analysis of what is to come.


"The bond market is reacting as if the Fed will be cutting rates in 2024. The key benchmark 10-year Treasury yield slid down to 4.55% and is below a recent high of 5%. That means mortgage rates will be coming down. The 30-year fixed rate will stick in the 7% range for this year but looks to move down into the 6% range by the spring of next year. Moreover, if the spread between Treasury and mortgage were to move from the current abnormal high to just the historical average, the mortgage rates today would already be in the 6.2% to 6.7% range. Be ready for more home buyers and more home sellers.”


Our local market is spotty. Alerts or price changes are flashing across emails, while others are pulling listings off MLS as we edge towards the holidays. A few well-priced gems were scooped up quickly since buyers feel satisfied that they have seen all the inventory that will come on this year, and they won't be missing out on anything new in the coming weeks. We start 2024 with low inventory all around us once again. Have a good week!!

11 Winding River Circle, Wellesley

Click here for 11 Winding River Circle

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

Facebook  Instagram