CNBC’s Diana Olick with Realtor.com’s Danielle Hale join ‘The Exchange’ to discuss an uptick in first time home buyers, rising all cash sales, and the prices of million dollar homes dropping off most.
.Back during the great recession and housing market crash one of the large franchise type real estate companies came up
with the phrase “market shift”.
It was a kind of positive spin on what for many of us was a difficult time. Home prices were falling and as homeowners lost their jobs during the great recession the number of foreclosures went sky high. The phrase “market shift” sounds more positive than “market crash”.
I have been seeing the “market shift” phrase again. I have observed a subtle slight change in the local real estate market but I believe it is seasonal. I did a quick check and Boston condos for sale are definitely selling very quickly, often with multiple offers and for over the asking price.
It is possible that some would-be home buyers are delaying their purchases. I certainly have some clients and friends who are holding off because of high prices and fierce competition in the housing market.
Even so, there are still more home buyers than there are sellers and just over a month’s supply of affordable Boston condos for sale in the metro region. There aren’t any signs of a big shift in the local real estate market. Look for an increase in the number of homes for sale in September but not enough of an increase to create a shift of any kind.
There has been an influx of new downtown Boston real estate agents. It really is true that there are more real estate agents than there are homes for sale. It will be interesting to see how it shakes out. The average number of sales per agent has been declining and as more people become downtown Boston real estate agents that trend will continue. Expect to see a downward shift in real estate agent incomes
Spring Housing Market
In the spring of 2020, it became quite difficult to get Boston real estate deals done. Because banks weren’t physically open to be able to finance them. Now many banks are back open for business, but they have also become more selective in their mortgage process.
The verdict is still put in which way Boston condo pricing will go in 2021. If there is a fallout in the pricing, then some smaller investors can take advantage of it because they’re more nimble. So it’s almost an advantage for smaller investors to watch that kind of thing happen.
Money doesn’t just evaporate into thin air. It changes direction and changes where it goes. So when I can’t make money over here, I’ll need to find a safer place for it over there. They call it a flight to safety. And then it’s just a matter of figuring out who’s the smartest on the street and has that safe place for the money. Having that ability to look and find those opportunities will really determine whether you sink or swim in today’s Boston real estate market.
Don’t get me wrong, it’s still a great time to be a seller. If you can build up that cash war chest, you’ll be positioned really well for the opportunities to come. It just might be harder to exit in the near term. That’s why it’s an even better time to be a buyer. When everybody else is greedy, you need to become fearful. When the deals become harder and harder to find, that’s when you know to keep a sharp eye on what’s going on in the market.