Good Morning, Osnat Levy with your Monday Market Report
Talking with a friend and past clients yesterday I’ve been asked what is my forecast for the market.
Also I don’t have the “crystal ball” I took the freedom to share with him my thoughts:
In my very personal opinion, we are reaching the tip of the market and in the next few month will start seeing a decrease in prices.
Why do I think so?
Looking at the high end in Brookline, Newton ($2 and up) and Needham ($1.5M and up)
We see the flowing:
In all three cities more than third of the single family inventory is above $2M (Needham is more affordable and I looked on inventory above $1.5M).
This is creating an upside down pyramid: There are more houses than buyers in that price range.
So what will happen: sellers who has to sell, like builders that can’t carry the new construction, or end users that bought already and has to sell will start dropping their prices.
As Builders will get more and more inventory on the market they will stop looking for more land to buy. This will clean the low end from buyers who are speculative and compete with the real end users.
Eventually in a year or so will see a drop of prices in all price ranges.
So If you are thinking of selling and your house is not at the high-end this could be a good time to do so. Please don’t hesitate to call me with any questions.
Osnat Levy for the Monday Market Report