The 30-year mortgage hit 2.88% this week, down from the prior historic low of 2.99% the week before. This marks the 8th time this year we’ve seen a new record low. While that allows for buyers’ dollars to stretch a bit further, the overall affordability of homes continues to pose a challenge for many buyers, with less than 60% of new and existing homes sold in Q2 being designated as affordable. That’s the lowest rate over the last year and a half.
How these factors will continue to play off of one another is going to be interesting to watch from all aspects. We hope to see the continued improvement of job numbers, as that will be key to preventing any further economic slide that we may face.
What To Watch
We’ll keep this one short and sweet – stimulus. We still don’t have an idea of what will be in the new deal, if there is a deal, and while reporting suggests that a new package will be reached “in the near future,” nobody really knows when that will be or what it will look like.
There have been talks of another round of PPP loans for small businesses, and extension of the unemployment benefits and myriad other features.
We’ll be keeping a close watch on the latest and will be sure to include any updates here. As always, let us know if there’s anything you’d like us to discuss in here and we hope you’re doing the best you can to enjoy what remains of summer!
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