In recent years, Boston’s competitive real estate market has had many deeming it a better market for selling homes than for buying. However, we’re already seeing signs that important real estate factors may be shifting in the Boston area as of late 2015. If you’re one of those who has been waiting patiently for the right moment to buy, you’ll want to keep these important recent developments in mind.
1. The Market May Be Cooling Off
For the first time in a while, the past several months’ worth of real estate activity seems to suggest that the Boston real estate market is beginning to cool off. One contributing factor is the ongoing development of new condos and luxury apartments, which has created enough competition to bring prices down. Over 2,000 new apartments have opened up this year, with a couple thousand more currently in development. That being said, it’s difficult to say whether or not this trend will continue in the longer term. Especially for those seeking high-end apartments and condos, this may prove to be the best time to act.
2. Low Interest Rates That May Rise Soon
Mortgage rates are still very low, and although no one can claim to know for sure what rates will look likely at any given time, most predict a rise in the near future. In fact, we’ve already seen some significant rate spikes in recent months, and many expect the Federal Reserve will affect the market significantly by raising interest rates in the not-too-distant future. For home buyers playing the waiting game and hoping to snap up the best possible rates, note that the tides may begin to turn very soon.
3. The Impact of Economic Recovery
The United States real estate market as a whole continues to recover in fits and starts from the 2008 recession and crash, but the overall trend is clear—markets are becoming healthier again, and price tags are likely to rise as a result. What does that mean for potential homeowners? Most significantly, it means that there may not be a better time to get a good price on a home than right now. It likely also signifies that a home purchase in 2015 represents a wise investment, especially in a generally competitive market like Boston.
For answers to your Boston real estate questions and more, contact Phil Ganz at Fairway Mortgage Corporation today!