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 and low supply, however, homes 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.
You might now that 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.
The reality is that fear drives a lot of decisions, but from our perspective there are ways to make this market shift work for buyers. Having worked through numerous transitioning real estate markets in the past, we see a possibly short window of opportunity appearing now for buyers with less competition, more motivated sellers and seller’s agent and options to receive lower mortgage rates.
Home ownership is a proven way to beat inflation, stabilize housing costs and increase wealth, but only if done right.
If you would like to explore your options or do some home buying planning (without any obligation) feel free to book a free consultation at www.TimeWithSam.com .
Posted by Sam Schneiderman
7-8-2022
