The Super Bowl is complete, and the spring Boston condo for sale season begins!
Judging by the quick jump in the total number of pending, homebuyers aren’t waiting around. Mortgage rates have risen faster than any time in the last dozen years, and the number of homes for sale is scary low.
Will rising rates cool off the market? Only for those who are on the fringes and sensitive to payment shock. The affluent – the buyers who are controlling the market – are less impacted, and a measly 1% rise in your loan rate only changes the payment by $1,116 per month on a $2,000,000 mortgage.
It should stay hot until one of the following happens:
- Mortgage rates hit 5%
- A flood of inventory
By summertime, the pool of highly-motivated Boston condo buyers should be diminishing, and we’ll be left with those who haven’t been willing to pay these prices. Remember that when you see another crazy-high sale price, there was only one buyer who was willing to pay that much – the rest all wanted to pay less!