While headlines are shouting about a declining real estate market the fact is that statistics show that, unlike many U.S. cities, there is still a severe shortage of properties for sale in most of Greater Boston Boston’s communities. We are still a long way from an oversupply of homes for sale and the 3 to 6 month supply of homes that creates a balanced real estate market. It looks like that is unlikely to happen in the immediate future.

 

The good news for buyers is that there has been less competition this fall and that has led to more negotiating power for buyers with significantly reduced premiums being paid and better terms available in some areas.

 

Good news, too, for sellers with well prepared properties and solid marketing. The Greater Boston market has remained strong, and we are still getting top dollar quickly for homes that are well staged for the market.

 

 

 

Historically, real estate prices have not come down during 8 of the last 9 recessions. They have inched up.

 

Inflation causes rents to increase. Inflation also helps homes increase in value over time. Home ownership is a great hedge against inflation. Ownership stabilizes monthly housing costs while building equity.

 

Rates have already come down a bit. Many economists expect rates to hit the mid-5s around mid-2023.

As rates soften and we move into the historically busier Spring market when price typically go up, more buyers will probably enter the market competing for a shortage of properties, which is likely to push prices up again.

 

Increased interest rates cause lower buyer demand and reduce competition for buyers.

Educated buyers that can get into the market while fearful buyers wait out the market can use long term adjustable rate mortgages now and refinance to lower rates when rates come down, which historically happens as inflation cools. Between lower rates and higher Spring prices, buying soon can save buyers thousands of dollars.