Nuhom @ LinkSquares - A View of Greater Boston Real Estate
Nuhom had the opportunity to present the state of Greater Boston real estate at a lunch and learn at LinkSquares headquarters in Boston this month. We were welcomed by many employees at their beautiful 60 State Street office both in person and on a zoom.
We covered the following topics:
What happened in real estate?
What's going on now? And where might things go?
What might help?
How Nuhom can help?
You can find the slides below!
Here are the takeaways:
So, what happened in real estate?
The last decade was the lowest supply of new homes built compared to previous decades
After the financial crisis, homes were cheaper to buy vs. to build... many homebuilders folded
Disproportionately less built in Northeast; Less conducive building zoning/code and Nimby-ism
We had the lowest interest rates in history <3%, which increased demand
With low interest rates, the most homeowners elected to refinance rather than sell
Cash offers increased during the pandemic; causing increased buyer competition
Millennials coming of age; increasing buyer pool
Remote economy emptied out cities; driving single family craze
What's happening now?
Inflation has skyrocketed
The Fed Reserve is trying to cool inflation by increasing interest rates
Since April, rates doubled to above >6%; but not horrible vs history
Mortgage applications down 50% since April
Home listings beginning to grow and remain on market longer
Median prices back to early 2022 levels for condos, single family, and multi-family
It is still a seller's market, but with less competition
Rates could settle next year and come down some in 2024, but will remain >4%
There continues to be a lack of homes available for purchase; demand > supply
What might help buyers?
Negotiate on price
Look at price changes
Look at days on market
Look at different rate programs (Date your rate, marry your home, divorce your rent.)
Take your time
See slides below for more details.