The Greater Boston real estate market is tracking about as expected in our Spring Market Report, however, the rapid increase in recent mortgage interest rates since that report has decreased their buying power more than expected for many buyers.
Home prices have remained stable because there is still strong demand, however, they are not getting bid up as frequently or as high as they were in the early Spring market. New buyers are also coming into the market already adjusted to the current rates.
The cost of buying a home with a mortgage has increased by around 25% over the last 12 to 14 weeks. That means that a buyer that was qualified for a fixed rate mortgage on an $850,000 property this Spring can now only qualify for a fixed rate mortgage of about $700,000. Add in a touch of fear about a recession and a dash of fear about inflation, and many buyers have bailed out of the market, leaving a less competitive market for buyers that have remained or new buyers that have come into the market.
Having worked through numerous transitioning real estate markets, experience has taught us that there are ways to make this market work better for many buyers that may think they are shut out of the market and, if we can get our sellers well positioned in the market, it is still a good time to sell. As always, proper advance planning can make the difference between buying or selling profitably or just buying and selling. Below is a great example.
Client spotlight
Last fall, Kevin was referred to us. We learned that he and his wife were anxious to sell their home of 41 years and move on pretty quickly to a home that would better accommodate their current needs. As we talked with them about their plans and discovered their priorities, we discussed the pros and cons of timing vs price vs some optional improvements that might enhance their sale. They decided that their best path forward was to delay the sale a few months to make select improvements to their house that could improve its price in the coming Spring market. As a result, they received multiple offers that drove the price up to a premium price plus a significant return on the money spent on improvements. By correctly timing their sale and investing in the right improvements, Kevin and his wife were able to get a great return on their investment and patience. Since they were moving out of Greater Boston, by coordinating closely with one of the top brokers in our national referral network, we were also able to help them get an offer accepted on their new home before they actually closed on their current home. Below is an excerpt from Kevin’s google review of our work with them:
“Throughout the process of the sale of our home Sam”s and Jesse”s advice and guidance were magnificent and ultimately instrumental in a successful process of marketing and sale. They offered practical guidance about preparing our home, always cognizant of budgetary considerations and recommending improvements or upgrades that would enhance the ultimate value of our home. GBHT guided us through the entire marketing and selling process and their forecasts ultimately proved accurate.”
Is now the right time to buy or sell real estate?
It all depends on your plans and priorities, but we do know that longer term planning helps about 30 percent of our clients improve their situation and reduce their stress, especially in a changing market. To put our extensive planning experience to work for you, feel free to contact your GBHT agent or book a call with Sam at www.TimeWithSam.com
Posted by Sam Schneiderman 7-5-2022
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