This month (I hope) we are approaching the spring market.
Traditionally this time of year we see an increase in inventory and a rise in demand by buyers who already see the end of school year in the offing.
What kind of spring market is awaiting us?
If you are thinking of selling your house, now is the time; the current median asking price for homes is still high (although in few towns, as Brookline and Newton, it is a bit lower than the same time last year) and inventory is very limited.
Since 2006 there is a strong trend of declining inventory of houses in greater Boston. As a result home prices are pushed up. This year there is an increase in the interest rates and that might affect the sold price. We’ll know better at the end of the first quarter of 2017. In my opinion, the short inventory and the lack of affordable new construction will continue to push prices up.
- Source MLSPIN
- Inventory as of March first of each year = Single family, Condos, Multi family
If you are looking to buy your first home this is still a good time, as interest rates are low. However be patient. Inventory is low while demand is high. To succeed in this competitive market you will have to know your budget, plan ahead and act fast when required to.
As you can see in the graph below – Interest rates are still at all-time low, but the trend is pushing up and you don’t want to wait too long.
If you are looking to Buy and sell: you’ll need to strategize and have a clear plan. You are in a much better position if you can afford yourself to buy your next home first and sell your present home later.
If you can’t do so and you need to sell your home first, you may need to move into a temporary place until you buy your next home.
If you strategize well enough, you might be able to buy and sell at the same time. It takes a lot of preparation and can be nerve-wracking (defiantly not for everyone).
To sum up you need to know your financing situation and have a good plan so you make an educated decision.
I hope you find this information helpful. If you have further questions contact me and I will be happy to expound.