We’re halfway through 2018 already, and the real estate market is as hot as ever! What can you expect if you are buying or selling a home this year? Here’s a quick Massachusetts real estate market update with some factors that you should keep in mind.
Prices Continue to Rise
Prices have been rising consistently for years now. It doesn’t seem to be slowing down. Low inventory continues to be a problem, and there’s still a backlog of buyers who are looking to purchase a home. This low-inventory, high-demand situation is pushing home prices higher and higher.
Competition is Stiff
Buyers can expect to compete for any properly priced homes in reasonable condition. Bidding wars are almost a guarantee. Thus, buyers are struggling to find ways to set themselves apart from the competition. This means stronger pre-approval letters and more desirable offer terms to sellers. Many buyers are even waiving inspection and/or mortgage contingencies in an effort to win bidding wars.
Interest Rates are Trending Upward
Rising interest rates are actually making the market even more competitive at the moment as buyers rush to find a home before rates increase much further. The increase in rates thus far does not appear to be deterring many buyers. Eventually, rates will rise high enough to start impacting price, but there’s no telling how long that may take.
The Time to Sell Is Now
All things considered, it’s a great time to sell. Homes are selling quickly and for maximum dollar value. Sure, prices could rise further, but they could also level off. There’s no telling where the peak is until prices start to decline, at which point you will have missed the peak.
Real Estate Assistance
Every market is different. In fact, they can vary greatly even in neighboring cities. If you would like more information on buying or selling a home in Massachusetts, contact us. We work with many local, experienced agents and would be happy to refer you to one. We can also assist with your legal needs when it comes to buying and selling a home.