Despite all the hype of a cooling market, a recent poll of local real estate activity indicates that 55% of properties are getting multiple offers, while some sellers with aggressive asking prices are languishing on the market.
Greater Boston is suffering from a severe housing shortage, so despite inflation and higher interest rates, there are qualified buyers for all our inventory. Today’s sellers are in a more normal market and can’t press their list price too high without adverse consequences.
There are four factors that determine a seller’s success: price, condition, timing, and availability of mortgage credit.
Price - Buyers compare properties in the market for best value.
Timing - Every home debuts to a different buyer pool. When demand is high, sellers do well. When demand drops, buyers can be more discriminating.
Condition - Sellers who create a more attractive product for market always fetch more money.
Availability of credit - If buyers can find the right mortgage product for their circumstances, they can become homeowners. Today, Adjustable-Rate Mortgages are seeing a resurgence because borrowers can find lower interest rates for 5, 7 or 10-year loans, before the interest rate adjusts in the future.
Demographics of today’s buyers explains continued demand. Close to half of Boomers were homeowners by age 34; today, 75 percent are. By contrast, only 37 percent of Millennials owned a home by age 34. Today, the average millennial is 35.