There’s an interesting article in today’s Boston Globe entitled: Hopeful home buyers find demand is up, supply down. The artilce is about how many would-be home buyers are facing unexpected concerns: not enough homes for sale and high demand for many that are available. For example, there were 781 condominiums available for sale in downtown Boston in December, an eight-year low, according to the Listing Information Network, a company that tracks the downtown condo market. The low supply of inventory is actually causing bidding wars in some commmunities.
The following is an exceprt for the Boston Globe: For sale, but not for long.
Buyers also are spurred by worries that interest rates, which have been hovering at about 5 percent for a 30-year fixed mortgage, will increase this spring after the Federal Reserve halts its purchase of mortgage-backed securities. In addition, there are signs the state’s housing market is on the mend, meaning prices may not go any lower. Home values in the Boston area have increased 5.6 percent since last March, according to Case-Shiller. Sales have increased for six months in a row, compared with the same month a year before, according to Warren Group, a private company that tracks local real estate.
What are your thoughts? Do think there’s a low supply of inventory? If so, do you see real estate prices rising in the near future?
File Under: Did we hit bottom?