2018 real estate predictions boston

2018 Real Estate Predictions

Were my 2017 real estate predictions correct? What do I think 2018 will have in store for the Greater Boston real estate market?

Hi everybody, it’s Ruth. Happy New Year. Happy 2018. A quick video just to talk about what I think is going to happen in the Greater Boston real estate market in 2018. I think the first thing we’re going to see is finally more inventory. I did make that prediction for 2017, and I was wrong, but I am sticking to that prediction for 2018. I think finally we’re going to see some of that inventory come on the market and less pressure on the market. More homes to choose from.

With that, I see a flattening out of the prices. Prices only went up about 3.5% in Boston and Brookline in the past year, so I think the prices are just above flattening out. Less pressure, fewer multiple offers on each listing. This is great news for buyers. It’s going to be easier to pick up a home. It doesn’t mean that it’s going to be a buyer market. I think it’s still going to be a seller leaning market though.

Mortgage rates, last year I did predict they’re going to stay under 5%. The absolutely stayed under 5%. They’re hovering around 4%. I think they are going to go up a little bit and still stay under 5%. Mortgage rates are looking good.

I think the changes in the tax code and refer to a previous video I did with my tax accountant Bob Ingle about how the tax code is going to impact housing. I think it’s going to impact mostly housing in the higher end market, $1.5 million and above. These are the buyers that are going to feel that impact the most and maybe the buyers for those price ranges, their budgets are going to go down slightly. That may be reflected in the price as we will see.

 In general, I see a very active market coming up in 2018 in Greater Boston. The ultra luxury and luxury markets are going to be slowing down $2.5, $3 million and up. Slowing down already for the past year. They’re going to keep slowing down, which is the first indicator of a leveling off.

Some markets that are going to pop, I think the condo market in Brookline is still going to be extremely hot and the condo market in Brighton as well. We had almost no inventory last year in Brighton. I think that’s going to change and I think prices are going to go up more significantly in places like Brighton, in West Roxbury where these are entry level housing for Boston residents. And of course, Brookline and Newton on the lower end of the market, under $1 million are also going to be very active, very hot as young families are moving into these wonderful communities with excellent schooling.

Some of the hot topics that are going to be discussed in the housing realm in Greater Boston. One hot topic is going to be walkability. The closer the home is to a walkable area, meaning a place with some commercial activity and public transportation, the better the home is situated. Walkability is very high on the priority list and the lifestyle that the buyers are looking for.

As for the design trend, I think we’re going to see a continuation of a preference for minimalistic and smaller homes. More flexible designs. The location is more important than the square footage. We’re going to see higher prices per square footage for smaller homes. We’re going to see a continuation in that trend as families value open space and flexible space over the amount of space, and the location being the number one priority for most home buyers.

If you would like to discuss how the housing market in 2018 is going to impact you as a home buyer, as a home seller, I would love to talk to you individually. Every story is different. Everybody has different needs, a different lifestyle and a different home. Give me a call, write me a text, make a comment below. I would love to hear from you. Have a wonderful, happy, joyous 2018.

 
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Ruth Malkin Brookline Real Estate Expert