I had a closing this week with Michael Harper of MGS Group, and we're excited to share the numbers with you! 5 Erwin Road is a one-of-a-kind waterfront home in Wayland that delivered some impressive statistics.

 

  • List Price: $4,975,000
  • Sales Price: $4,825,000
  • Sold for 98% of asking 
  • 5 days on market

 

That's a new high for Wayland, which has seen historic home prices over the last year! So happy to be a part of the success for our sellers. 

I was asked this week, how much have prices gone down in the last few months? Intuitively I replied they haven't, and after looking more closely at the data I felt even better about that answer. We have not seen a dip in selling prices. In fact, well priced properties are trading in days and others are selling in weeks, perhaps with a price reduction. But were those properties priced correctly to start? Probably not- realistic pricing matters.

We still don't have any indications that we are in a "bubble," because that would mean it would burst. I have many buyers in my pipeline who are chomping at the bit to buy a house and are still anxiously waiting for new properties to come on. (Most likely they will be waiting until after Labor Day when the fall market starts. Everyone is on vacation!)

In an article in Fortune Magazine, Robert Shiller a professor at Yale University who has predicted many housing corrections, is concerned. That said, not everyone agrees with him.

 

"Over the coming year, home prices are expected to rise. That's according to forecast models produced by the Mortgage Bankers Association, Fannie Mae, Freddie Mac, CoreLogic, and Zillow. Meanwhile, modest home price declines are currently being forecast by John Burns Real Estate Consulting, Capital Economics, Zelman & Associates, and Zonda.

Why do some industry insiders think home price declines are unlikely? For starters, the country outlawed the subprime mortgages that sank the market a decade ago. Not to mention, homeowners are less debt-burdened this time around. Back in 2007, mortgage debt service payments accounted for 7.2% of U.S. disposable income. Now it's just 3.8%."

 

 

As I am writing this, the stock market is rallying. While inflation climbed in July it was at a slower pace than expected, showing that the Fed's plan is working. This comes from CNBC, "Prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, a slowing pace from the previous month due largely to a drop in gasoline prices."

 

And if you look at the existing inventory in the area it is still low! People will always need housing in any economic climate and if there is nowhere for them to go, the law of supply and demand will keep the real estate market moving. In my opinion, higher interest rates could also keep that inventory low, as homeowners choose to stay put and hold onto their low payments rather than trade that low rate for a higher one.

I thought I would end this week's blog with a fun article I found in Architectural Digest. If you are going to do some redecorating this fall, you may want to stay away from these trends 😂

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.