Many are aware that there is “low inventory” in the local residential real estate market. But, how low is low? What forces made it that way? And what implications does it have for you and me if you’re interested in buying or selling?
Motivations have changed for those who want to sell a property. People now sell because they must. Their motivations typically include downsizing, divorce, death, and relocation. Many people who weathered the recession in good shape simply purchase additional properties so they can benefit from record low interest rates, rental income and price appreciation rather than sell.
The recession in 2008 and resulting extremely low interest rates have a lot to do with this situation. In addition, many homes in Greater Boston haven’t recovered their value especially when accounting for inflation. For some, it doesn’t make sense to sell and for other it doesn’t make sense to sell because they’d be realizing a loss, even though it’s almost a decade after the beginnings of the recession.
For buyers, we’re in a rising market, so it’s possible to “overspend” and do quite well in the long-term. Certain properties attract unexpectedly high prices that are hard to justify. Yet, they appear reasonable after a year or two. For sellers, properties are selling for high amounts and in short time periods. The seasonality of selling (you MUST sell in the Spring) is no longer true; one sells when it’s convenient for the seller; the buyers are ready and waiting all year long. If a property is well-priced and professionally marketed, a seller can do quite well. For my clients, I need to know valuations, trends, and a client’s time-frame in addition to in-depth assessments of their particular property.
Jeff Meese Realtor + Architect
Vice-President | ePlace Real Estate
“Jeff is highly knowledgeable, personable, very responsive, and added a significant amount of value to the home buying process. We would (and have) highly recommend him for anyone who is serious about buying a home and wants a buyer’s agent who will actually add significant value to the process. “
~ Dan and Christine