Last week I saw a headline that read, "People are Making More Money on their Homes than their Yearly Salary." That is incredible to think of, really. Up until this time I have always told sellers and buyers, "we can't think of your primary residence as an investment opportunity, it's a home for your family". This advice comes from experience - as a Realtor, I am a product of the crash in 2008 when people saw deep losses when trying to sell their homes. The story is so different now.
These days, demand is incredibly strong for nice solid houses that are priced at a reasonable starting point (most of these bidding wars tend to take place under the $3M mark). As I have written before, the properties that benefit the most from this historic time are on streets or in places that were seen as secondary locations in slower markets. For example, houses on busy streets, near highways or train tracks, towns that are a longer commute to Boston and without a commuter rail nearby are all seeing record sales numbers and interest. The demand is so intense that buyers are quickly willing to overlook these potential objections, just to win a house and get settled. Two houses that heard the roar of Route 9 because of their proximity to the highway were super hot homes in the last few weeks, and will trade close to $3M. This NEVER would have happened three years ago. The blue chip (established) neighborhoods will always be desirable and the first to sell whether it's a down or up market, so they have less to gain during these unprecedented times.
Mortgage Rates
I know the topic may seem boring, but the mortgage rates shown in the chart above are working really hard to spoil the real estate party. They are inching up towards 4 - 4.5% for end users, and well over 5% for investors and second homes this week - an increase of nearly a point from last year. That really can inflate your payments, and is not ideal for investors or homeowners.
All that said, from sizing up the profile of buyers at my listings, the fundamentals in our area seem very solid. There are many relocation clients moving to the Boston area for jobs in bio-tech, pharma, finance and the medical field. Some people are making moves back to this area to be near family, which is always so touching. People have jobs and are still choosing to settle here, and that sets a healthy foundation for the housing market.
Now comes the fun part! I have so many fantastic houses and a townhome coming up that we want to share!!
A stunner in the Poet's Corner of Wellesley
A stately young colonial in Wellesley Farms
A gorgeous townhome near Linden Square and Wellesley Center
In Wayland, I am listing a lovely home on the same street where I grew up :)
30 Cliff Road in Wellesley had a price improvement - this one of a kind home is a must see!
5 Erwin Road in Wayland is coming on officially next week, and is just dreamy!
So there you have it, this week's wrap up. Can you believe April is just next week? I can feel the warm weather coming our way!
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