I am writing this week's blog from stunning Nantucket while vacationing with my family! We are all so lucky to have this beautiful island in our backyard and just a boat ride away. As I see it, there are many sides to Nantucket - the incredible raw landscape that is truly breathtaking, some of the best restaurants and shopping out there, wonderful people, and incredibly high housing prices that nearly doubled in the last two years. The extraordinary selling prices and rents make it nearly impossible for longtime residents and those working on the island to find places to live. A few restaurants closed this year because it was hard to hire help with limited housing for them. To shed some insight on the market, this is what you can get for your money:

This charming $3,500,000- $4,000,000 home in the Surfside neighborhood has the following qualities:


  • 1900 Square Feet
  • 3 bedrooms
  • 3 full baths
  • 1.2 Acre
  • One block from the Beach
  • Lovely condition
  • Bought for $1M in 2012

Not a bad investment, right? If we are to see a slow down in the real estate market, I believe the first hint of a correction will be seen first in secondary home markets. Fiscally nervous homeowners would be putting off buying vacation homes, or selling their current ones before their primary residences. However, I have talked with real estate agents on Nantucket and the Cape, and while there has been a shift, it surprisingly seems exactly in line with what we are witnessing in Metro West. Houses that are priced well in desired locations are moving quickly. Sellers who are using record selling prices from a year ago as their target are sitting longer and are ultimately experiencing price reductions. It's a slow but noticeable change, although not as drastic as some headlines will have you believe.


Interest rates went up by 3/4 of a point Thursday or 75 basis points, which was expected. The good news for home buyers is that it did not affect mortgage rates as the jump was already factored in weeks ago. In fact, mortgage rates dipped a little in the last few weeks. 


The chief economist at Keller Williams had this to say on the status of the market:

“The housing market is now slowing down with home sales down 14% in June, and that trend is on pace to continue through July. Home price appreciation has begun to slow and mortgage rates are a primary factor slowing demand for home purchases. Over the next several months, the housing market will be even more in line with pre-pandemic market conditions.” That may be true, but inventory is still quite low in most towns as you see in the numbers below.

Conditions are changing. Now more than ever, who you use to sell your house matters! You want someone who is savvy and on top of market conditions. Pricing your house well is key and you need to be thoughtful, not emotional. I anticipate a nice fall market where there is a balance between what sellers and buyers want, but you need a smart and astute agent who can get you there. Of course, I would like to be that person! 

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.