Fortune Favors The Prepared Mind:
I know I’m repeating myself, but I’m going to say it again, the last data on the Boston real estate market has me a little concerned.
For those that may not or read my last Boston real estate blog post, here’s a summary:
Boston Condo sales in the month of August 2019 – 465 Boston condos sold – DOWN 10.9% vs August 2018
Median Sale Price For Boston Condo For Sale – $634,000 – DOWN 8.3% vs August 2018
Boston Condo For Sale Inventory – 1,109 number of Boston condo for sale – UP 22.5% vs August 2018
Days on Market For a Boston Condo to go Under Agreement – 40 days – UP 2.6% vs August 2018
Months of Supply – 3.10 months of Boston condos for sale – UP 33.6% vs August 2018Median Sale Price/SF – $690 per sq/ft. – DOWN 4.9% vs August 2018
My father always told me: Your prospects tomorrow will be determined by the actions you take today.
If you take the data above more than a slight correction, than it behooves you to ask yourself how you want to be positioned should Boston real estate for sale prices indeed drop substantially over the next several years.
If you own property, perhaps you might want to sell now. Or, if you plan to hold, at least mentally prepare yourself for the emotional stress should Boston real estate market values drop for a prolonged period of time.
Or if you have tenants, you may want to lock in longer leases to ensure you have the necessary income to ride out the down cycle. Or re-finance or re-capitalize as may make sense.
And if you’re interested in using a market correction as an opportunity to buy property at much better valuations than today, then you should use the time now to become prepared.
You need to understand how Boston real estate as an asset class works and its overall economics. You need to determine which type of property and what downtown Boston real estate market you want to invest in. You then need to get familiar with that niche and start tracking prices and listings to develop an eye for what constitutes good value. You need to identify and recruit a good team of expert professionals to help you (e.g., Ford Realty, mortgage lender, accountant, attorney). And you want to line up your financing in advance before viewing Boston real estate for sale.
This is important to remember, you won’t be the only one aiming to buy when there’s “blood on the streets”. Others will as well. And many of them have a lot more experience and much deeper pockets than you. So you want to have your plan carefully prepared in advance so you can act with clarity, speed and confidence when the time is ripe.
Your prospects tomorrow will be determined by your actions today. Fortune favors the prepared mind