2023 Real Estate Observations (Boston, Cambridge, Brockton: pine, road, values)

[GeoffD]

The debacle at the Great Recession is an example of why the Federal government shouldn’t be messing with mortgage markets in the name of social engineering. It’s bad enough we have all that Quantitative Easing overhang where the Federal government owns a huge percentage of mortgage backed securities that pushed interest rates down. We certainly jumped on that imbalance. We’ll never see a 2 1/2% 30 year fixed rate mortgage again. With the headline inflation of the last two years, it’s already repaying with inflated dollars at 85 cents on the dollar.

[ca1337]

What rates are you folks on the ground seeing lately? Best I found with a stellar credit was 5.375% on an 7-year ARM. I was told majority of mortgages taken right now are ARMs (unsurprisingly)

[ca1337]

Has anyone been looking at the close Boston suburbs lately around the 2M range and above (Newton, Cambridge, Brookline, Belmont, Winchester, Lexington, Wellesley, etc.)? I feel that I've been noticing a lull in the market, with houses at 2M "sitting" for 1 week instead of 2 days. I've been told a cooling of the market happened at the 3M range and is now trickling down to the 2M range.

[ca1337]

Originally Posted by newenglandgal123

They'll be ok and likely don't have to worry about being underwater if the market drops....buyers put more than 20% down.

Where are you seeing how much they put down? Unless you're involved in some way?

[CaseyB]

Originally Posted by ca1337

Where are you seeing how much they put down? Unless you're involved in some way?

You can look it up online, it's a public record.

[massnative71]

Originally Posted by CaseyB

You can look it up online, it's a public record.

Can be accessed here.



https://www.masslandrecords.com/

[BostonMike7]

Originally Posted by ca1337

Has anyone been looking at the close Boston suburbs lately around the 2M range and above (Newton, Cambridge, Brookline, Belmont, Winchester, Lexington, Wellesley, etc.)? I feel that I've been noticing a lull in the market, with houses at 2M "sitting" for 1 week instead of 2 days. I've been told a cooling of the market happened at the 3M range and is now trickling down to the 2M range.

I've seen some $2 mil new construction in Lynnfield sit for more than that with price drops.

[ca1337]

Originally Posted by Moh1988

I have many colleagues paying $2600-$3200 monthly for 1 bd in this town (Boston, Charlestown, Brookline)!
Demand is super high with tech/biotech paying great $$$ for entry-level jobs! It's rough indeed.
I absolutely be out of this town if I could get a job outside! Unfortunately with biotech, it's here vs SF! And I pick Boston over SF in a Heartbeat.

You should look at PA around Philly. Not a mega-hub like Boston but some really decent pharmas/biotechs of all sizes and a very well-balanced housing market vs. incomes. Great schools, balanced politics and it's definitely not the boondocks like NC. I really liked it there.

[ca1337]

Originally Posted by BostonMike7

I've seen some $2 mil new construction in Lynnfield sit for more than that with price drops.

In Lynnfield that's a given. 6 months ago 1.6M McMansions were sitting in Burlington too and builders were desperate. But I'm wondering about the towns in my list.

[id77]

Originally Posted by ca1337

Has anyone been looking at the close Boston suburbs lately around the 2M range and above (Newton, Cambridge, Brookline, Belmont, Winchester, Lexington, Wellesley, etc.)? I feel that I've been noticing a lull in the market, with houses at 2M "sitting" for 1 week instead of 2 days. I've been told a cooling of the market happened at the 3M range and is now trickling down to the 2M range.

I haven't been actively looking since I bought 3 years ago, but I have seen a bit of a 'lull' so to speak. My experience has been mostly northeastern Brookline with a tiny bit of Newton sprinkled in, but in those areas I see fewer open house signs than I did 1-2 years ago and smaller crowds at the ones I do visit. I don't see crowds gathered outside open houses much anymore, and the ferver of realtor flyers in my mailbox asking me to sell have also died down.

Haven't looked at online sources much lately to know if inventory is down as well, but it just seems ... quieter. I just did a quick check online in my area and there's been a total of 4 sales over $2 million in 2023, and none since February. By comparison, in most of 2022 the same area averaged 4 sales over $2 million per month.