Metro Boston Real Estate News

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.

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. Lately, we've had many clients secure homes under the asking price and sellers who are willing to offer concessions such as interest rate buy-downs and paid closing costs. This was almost unthinkable only 6 months ago, but with inventory beginning to sit around longer many motivated sellers are starting to be more open to flexible terms. 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.

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. It is easy to focus on this drop in the bucket, but markets are cyclical. Always have been and always will be. We are still operating in the lowest interest rate environment we have ever seen, outside of the last few years. The federal government, regardless of who is in office, is always going to try and progress and prop up the housing market. Real estate is the top contributor to our GDP as a country and allows our economy to operate and grow. Keep this stuff in mind next time you read a flash news headline!

Despite a slowdown in overall transactions, I don't expect prices to come crashing down anytime soon. Our current inventory of condos in Boston is down 6.24% to just 902 vs. 962 at the same time last year. Even with less buyer demand, we only have 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. As always, don't hesitate to reach out with any real estate related questions and have a wonderful holiday season! See you in 2023!

Posted by Ryan Drowne on
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