The Boston Real Estate Market Is Shifting
There’s been some changes happening in the Boston real estate market. Click the video below to learn what you should do – whether you’re a real estate buyer or seller:
Hi, this is Ruth. I just wanted to give you a quick market update. Real estate is shifting a little bit, and I wanted to share a few thoughts with you. It is becoming a much more even market. We’re seeing this summer, buyers taking back a lot of the power that they haven’t had in the past few years in real estate. Generally speaking, it’s a much more favorable market to buyers, not quite a buyers market, but much more favorable. Rates are low, and sellers are having to wait a little bit longer to find the right buyer, so go get out there if you’re thinking about buying. As for home sellers, look, if you’re thinking about selling your home, you’re talking to an agent who’s saying, “This is going to take one week and one open house. You’re going to have multiple offers. This is going to go way over asking,” that’s not going to happen.
Run from that agent. Don’t count on that anymore. It is no longer the rule. It is still happening here and there for certain types of properties, but please do not depend on that if you are a home seller. In Brookline specifically, between the first half of 2015 and the first half of 2016, we’ve seen roughly a flat market, average prices for the single family homes in Brookline. The single family homes in Brookline, it’s mostly luxury market, and I’ve been saying for a while that this market is softening, and I think we’re going to see further softening in the luxury market. In the meantime, the condo market in Brookline for the same time, the average prices did go up about 9-1/2%.
That is a substantial increase, but I think this is going to taper off. We’re looking at about 3-5% in the coming years probably for the Brookline condo market. JP, Brighton, still hot markets. There’s several hot markets still in Boston, but it’s not as nuts as it used to be. We used to just call the market nuts. It’s no longer that. What does all of this mean if you’re living anywhere in the United States? I think Boston metro, as well as some other areas, metropolitan areas in the United States, are great lending indicators of what is happening in the market. If this softening is not happening in your market yet, expect it to happen soon.
This summer, we’re seeing a lot more price reductions. We’re seeing a lot more where a home buyer and a home seller had an agreement, and the home buyer backed out and the home came back on market. We’re seeing a lot more of that, and I think we’re going to see much more of that as buyers are resisting very high prices. They feel that they’re overpaying for some of these homes, and sellers are expecting to not have to negotiate. Expect some shifts in the way that we are handling these transactions. I think rates are going to stay relatively low for a while longer. I think luxury’s going to continue softening, and I think the entry level and condo market will taper off a bit. Again, this is Ruth. I’m here to help you make great real estate decisions. You need any specific information, call, text, email, you know where to find me.