Happy Holidays to all! I hope everyone had a great Thanksgiving with their family and also took some much-deserved time to relax this past weekend.
As we get into the final stretch of 2022, it's safe to say this year has flew by while the pace of the real estate market continues to slow. The overall economic uncertainty, higher interest rates and deteriorating affordability has resulted in many buyers pulling out of the market and some sellers to adopt the wait and see approach.
A Unique Opportunity for Active Buyers
However, this is also creating a unique opportunity for active buyers to finally have a chance at getting a property under agreement without having to compete with multiple offers. While it still remains a seller's market, the tables are beginning to turn and buyers now have the most leverage they've had in many years when it comes to making offers on properties.
Recent market shifts include:
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Securing homes under the asking price.
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Sellers offering concessions such as interest rate buy-downs and paid closing costs.
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More flexible terms from motivated sellers as inventory sits longer.
Financing and Interest Rates
Additionally, jumbo loans, which most of the properties purchased in the Boston area would require, actually have better rates available than conforming loans. We've had buyers recently lock in rates in the 5's on properties we put under agreement.
A note to my buyers out there: Do not be shaken up by the interest rates. There are options for you out there to keep your monthly payment manageable. I can connect you with my preferred lenders to go over your situation top to bottom.
Long-Term Perspective
Nobody really knows what interest rates are going to do, not even the Fed. If you are considering buying now, let's think of what could happen if rates go up or down. Say you buy now. I would imagine you are buying to enjoy the property for 3-5 years or more. In that case, it does not matter what happens over the next 6 months. Trying to time the market never works. It is also very important to remember the history here. Markets are cyclical—always have been and always will be. We are still operating in a historically low interest rate environment outside of the last few years. Real estate is the top contributor to our GDP as a country and allows our economy to operate and grow.
Boston Market Stability
Despite a slowdown in overall transactions, I don't expect prices to come crashing down anytime soon.
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Condo Inventory: Down 6.24% to just 902 vs. 962 at the same time last year.
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Supply: Only 2.30 months of supply, which should hold prices fairly steady.
Only time will tell, but I'm confident the market will remain stable for the foreseeable future.
