Boston Real Estate for Sale

BOSTON REAL ESTATE SELLERS

Boomer liquidations –

When we first started talking about boomer liquidations, people in their 60s scoffed and shrugged it off.  But when they hit their seventies, and the burdens of homeownership have never been so apparent. Stuff needs to be fixed regularly, and that dang property tax bill keeps up. If you didn’t mind leaving town, a homeowner’s equity position has never been so solid, and you could go to most towns in America and buy a house for cash and live happily ever after.  It’s a temptation that aging boomers will find harder to resist in the near future.

Health considerations –

COVID isn’t going away, and for those who are physically challenged, selling their Beacon Hill condo here and moving to a healthier climate (location) will feel like a life-or-death decision – they need to do it. Cashing out their equity is a nice bonus too, and provides enough grease to make it easier to leave downtown Boston. Let’s note that there are good doctors everywhere, and while the transition may be uncomfortable for the first couple of months, you’ll adjust.

Grandkids –

Obviously, it is harder for the kids to get a foothold here than the parents who came 10-30 years ago – home prices have doubled.  If the kids pack it up and take the grandkids somewhere that is affordable, it is inevitable that the grandparents will follow.  They don’t have much time left, and they want to spend it with family.  The grandkids may be the #1 factor in real estate decisions for the next few years.

Move-Uppers –

For those who want to stay local, the best time to move up is when you can sell your existing home for more money than ever, AND get a lower interest rate.  My rule-of-thumb for move-uppers is that you have to spend 50% more on the next house to make it worth the move – if you only spend 10% more, you only get an extra bedroom, and it’s not worth moving. There aren’t many in this group who finance – you still need a big cash infusion to make it work. Here’s an example:

If you bought your home for $500,000, with a loan of $400,000 at 4%, the payment is $1,910 per month. If you sell now for $1,000,000, and use $600,000 for your down payment to purchase a $1,500,000 house, the payment is $3,794 per month at 3%.

Most who are used to paying $1,910 per month will want to inject more capital into the equation.

Last Movers –

You are of the age where you have one more move left in you, and it’s probably due to hanging on to the 2-story family homestead for a little too long.  The kids have been gone for a while, and you’ve been rattling around in a house that should be passed on to the next generation before you fall down those stairs.

BOSTON REAL ESTATE BUYERS

First-timers or Out-of-Towners –

If you don’t own a Boston condominium here yet, your motivation is substantially higher than those who do own and are just trying to re-position.  It’s why current homeowners struggle to understand why homes keep selling for record amounts – because heck, they’d never pay that much.  But first-timers and out-of-towners are more desperate to get in and will pay an extra few bucks to finally get something.

Downsizers –

Rarely do locals downsize in the same town – keeping the old house makes to much sense, and why we have such low inventory. But Boston is well-positioned to be a landing ground for those selling for big bucks in NYC and coming here where our prices look like a bargain.  This may be the largest group of buyers, judging by how fast prices go up.

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Next year’s selling season won’t be as predictable

However, we are overdue for a surge of sellers

 

Boston Real Estate Search

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For months now the vast majority of Boston condo buyers and sellers have been asking the same question: When will the economy turn around? Many experts have been saying the housing market will lead the way to recovery, and today we’re seeing signs of that coming to light. With record-low mortgage rates driving high demand from potential buyers, downtown Boston condo are being purchased at an accelerating pace, and it’s keeping the housing market and the economy moving.

Here’s a look at what a few of the experts have to say about today’s astonishing recovery. In more than one instance, it’s being noted as truly remarkable.

Real Estate Experts Thoughts on the Housing Market

Ali Wolf, Chief Economist, Meyers Research

“The housing recovery has been nothing short of remarkable…The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back.”

Fannie Mae

“Recent home purchase measures have continued to show remarkable strength, leading us to revise upward our home sales forecast, particularly over the third quarter. Similarly, we bumped up our expectations for home price growth and purchase mortgage originations.”

Javier Vivas, Director of Economic Research for realtor.com

“All-time low mortgage rates and easing job losses have boosted buyer confidence back to pre-pandemic levels.”

James Knightley, Chief International Economist, ING

“At face value this is remarkable given the scale of joblessness in the economy and the ongoing uncertainty relating to the path of Covid-19…The outlook for housing transactions, construction activity and employment in the sector is looking much better than what looked possible just a couple of months ago.”

Boston Real Estate and the Bottom Line 

The strength of the housing market is a bright spark in the economy and leading the way to what is truly being called a remarkable recovery throughout this country. If you’re thinking of buying or selling a home, maybe this is your year to make a move after all.

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