We're jumping right into this week's blog with a more serious mood than last week, as the real estate market has suddenly taken on a different vibe. Industry experts, including myself, are grappling with what's to come. In fact, economists at Fannie Mae are reporting the following about the future of home sales, and they're inferring there could be a modest recession. This is from an article by Inman News, a newsletter geared towards agents.

"In their latest forecast Tuesday, Fannie Mae economists said the projected downturn 'is not expected to resemble the severity or duration of the Great Recession,' but that higher mortgage rates are likely to cause home sales to decline by 7.4 percent this year and by 9.7 percent in 2023.


Fannie Mae had previously forecast that home sales would drop by 4.1 percent this year and 2.7 percent next year." 

The higher rates are really wreaking havoc as the Federal Reserve had planned. Rates now inching above 5% are slowing down refinances and the purchases of vacation homes. But this isn't going to increase inventory, in fact if someone is locked into a low rate, they may put off a move since that means taking on an interest rate nearly double what they are paying now.

These are long term predictions that are just whispers in the background. If we are to look at this moment in time, US home prices actually surged to a new record in March while the volume of sales decreased. According to the WSJ, existing home sales fell 2.7% in March. Some buyers have tapered off, exhausted from trying to find a home, and others have accelerated their search, anxious to lock in a mortgage before the rates creep even higher.

Locally we have seen a real slow down this week, but that's a seasonal "self imposed" break by Realtors in some ways. With the holidays last weekend and public school break this week, agents waited to put on new properties. A number of beautiful properties hit the market on Wednesday, and I would be surprised if they hang around long. Once we see the bidding wars subside, I promise you will be the first to hear about it in this newsletter.

I've listed another beautiful townhome in Wellesley this week, in the same development as one we listed a few weeks ago. SO close to Linden Square and the train, etc. A great place for someone out there who craves easy living!!

Next week I am pleased to officially present  this gorgeous Victorian in the heart of Wellesley Farms.

I think having impeccable taste and a design flair is a prerequisite to working with me this week, as my sellers each have amazing style!! Lucky me!!

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.

Cheers to a great week!