Real Estate Market beginning a big Price Correction? Especially in the suburban over a $million bracket? (Boston: appointed, mortgage)

[Ninotchka P]

Originally Posted by 495neighbor

I'm seeing prices in Arlington catch up to Lexington and Natick home prices catching up to Wellesley.

Is that a sign of a local bubble? Or something else? Both towns (A & N) are popular and have undergone significant transformation within their own right, perhaps having the higher end homes catch up to the neighboring aspirational towns (L & W) is a permanent state of affairs.

[MikePRU]

Originally Posted by 495neighbor

Came across this article and thought it was pertinent to this topic.

https://www.bostonglobe.com/metro/re...1xL/story.html

I'm seeing prices in Arlington catch up to Lexington and Natick home prices catching up to Wellesley.

There's still quite a significant difference in median sales prices in these towns.

[CliffBeach2001]

Interesting conversation but prices have always been driven by high end jobs in the area. Due to the highly educated population, jobs are often highly paid. For some, the magic suburbs are all the same. They really don't change from year to year. I have seen some suburbs pop and build quite a bit of homes but then fall back. Usually this is due to lower prices when the commuting area moves out. After some time it moves back. We know many who moved to North Reading and Southern NH and spend/spent hours in traffic before making a change. After all most people are looking for the same things ( good education, proximity to work, lot size, down town centers etc). And that result is usually a commute of less than a half hour.
The bubble question is significant only insomuch as the market crashes, a major terrorist event takes place or something shakes out so that new job production stops or falls significantly ( like 2008). Otherwise, these 'burbs keep their value. Though millenials might not ever make enough to buy these homes ( sorry if you are a highly paid 20-30 something).

[robotfood540]

This market is downright demoralizing for a 29 year old working in the city and trying to save for a home. I read threads like this that offer a glimmer of hope, but at the end of the day no one knows exactly where the market will be next year..or in 2 or 3 years. Let me ask you this, if you were living in your girlfriend's dad's house in Quincy rent free (he now lives in Minneapolis, but is holding onto the house), would you be eager to enter the market sooner rather than later? We have saved approx. $40k in one year so far for a down payment and are just not quite sure when to bite the bullet and start our home search..

[massnative71]

Originally Posted by robotfood540

This market is downright demoralizing for a 29 year old working in the city and trying to save for a home. I read threads like this that offer a glimmer of hope, but at the end of the day no one knows exactly where the market will be next year..or in 2 or 3 years. Let me ask you this, if you were living in your girlfriend's dad's house in Quincy rent free (he now lives in Minneapolis, but is holding onto the house), would you be eager to enter the market sooner rather than later? We have saved approx. $40k in one year so far for a down payment and are just not quite sure when to bite the bullet and start our home search..

No, keep saving!


I would also wait till you are married before going into buying a house together.

[Ninotchka P]

No, keep saving and waiting. It makes no sense for you if you can live rent free. At minimum you should aim for 20% down payment plus a solid emergency fund. Congrats on your living situation.

[BostonMike7]

Originally Posted by robotfood540

Let me ask you this, if you were living in your girlfriend's dad's house in Quincy rent free (he now lives in Minneapolis, but is holding onto the house), would you be eager to enter the market sooner rather than later? We have saved approx. $40k in one year so far for a down payment and are just not quite sure when to bite the bullet and start our home search..

I'd ride that out as long as I could and just save money. $40K in one year? I'd just suck it up for another 2-3 years.

[MikePRU]

Originally Posted by BostonMike7

I'd ride that out as long as I could and just save money. $40K in one year? I'd just suck it up for another 2-3 years.

I third this opinion. If you're living rent/mortgage free then I would ride that horse until she throws you. Keep saving your money and one day when you're ready you'll have a much smaller mortgage to pay because you saved up a huge downpayment.

Also, as others have said, I would wait until you're married to buy a house with your girlfriend. Even if you have a strong contract in place to spell out who owns what things can still get ugly if you part ways.

[robotfood540]

Thanks for the responses guys. We def. plan on staying one more year at a minimum and hope to crank up the savings even more over the next 12 months. My concern is my rate of savings vs. rising home prices and interest rates. If only he'd give us the house...

[bugelrex]

Originally Posted by robotfood540

Thanks for the responses guys. We def. plan on staying one more year at a minimum and hope to crank up the savings even more over the next 12 months. My concern is my rate of savings vs. rising home prices and interest rates. If only he'd give us the house...

If you predict rates will be higher in 2 to 3 years then having large cash pile will put you in a great position. Right now cash doesn't help with rates so low. When rates are higher, theoretically prices must come down to support the monthly payments and will knock out cash poor buyers

If we see a return of crazy interest free loans then the bubble gets extended for several more years