real estate market update

Market Update: What Does Fall Hold For The Boston Real Estate Market?

What’s happening in the Greater Boston real estate market? Here’s my fall market update:

 

HI everybody. It’s Ruth. I’m in my home office and I want to talk for a minute about what’s going on in the real estate market, Fall 2018. Things have changed. They have really changed since last spring and over the summer, which were extremely busy and extremely tight markets and we’re looking at a very different real estate market here in Boston and Brookline.

So, what’s going on? First of all, home sellers. Is it time to panic? No. It’s not. This is still a very good market for home sellers. Prices have gone up tremendously in the past few years, but instead of going up at such an accelerated rate like we’ve seen since roughly 2013, the home prices will go up but I think closer to the inflation rate, which is about 2, 3%, maybe up to 5% but not much more than that. So I think we’re going to see home prices stabilize and I think right now what we’re seeing is that slow down before we take the turn to kind of a stable market.

Home buyers, this is better news for you. After years and years of bidding wars and fighting for properties, you’re going to maybe have more choices as more inventory’s going to come on the market. You’re still going to enjoy fairly low mortgage rates.

Speaking of mortgage rates, what’s going on there? We are looking at mortgage rates that are increasing. They’re increasing because income is going up, so I think what is going to happen is that interest rates are not going to put a dent in the prices, really, and they don’t always really have a great effect on the prices because interest rates rising are usually due to a growing, expanding economy, more jobs, and more income.

So, what are we looking at? I think we’re looking about a 5% plus interest rate by the end of 2019. And I think we’re going to see a steady healthier market and sellers, don’t expect people running with a check in hand to the open house. Expect that some people are going to actually think about before they’re going to put in an offer.

So, if you have any questions, want to talk about the market with me, call, text, write a comment. Love to hear from you and we’ll talk to you soon.

 

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Ruth Malkin Brookline Real Estate Expert