What to buy in a bear market? Boston Real EstateAugust 13, 2011
It should be no surprise at this point to hear the stock market took a massive plunge this week. The events of the last couple of weeks that caused the stock market to nose-dive have put many in a state of panic. Shareholders are pulling out their stocks and bonds in frenzy. Most people don’t know WHAT to do anymore with their funds, and are looking for a safer investment haven than the unpredictable stock market.
I have received more calls in the last few days from sellers and buyers than the entire month combined, because people are trying to make sure their money is secure. Buyers are looking to spend their money where it is safe in the long term. I’ve been telling buyers that the value of Boston luxury homes has held steady, faring much better than other real estate markets nationwide. Below is a graph showing sale prices in the Back Bay over the last decade, and as you can see, 2011 prices are trending up.
Sellers who were giving some indication of flexibility in their asking prices, are now saying that they are sticking to their original price. They’re not allowing much room for negotiation and are especially firm on their price in this volatile market, because they, too, are at a loss for what to go with their money after they sell and would rather hold on to their tangible assets. Real estate is one of the few solid investment opportunities right now.
That said, before the prices of real estate soar, buyers should take advantage of today’s prices and buy their dream home. Boston luxury homes are a great bargain at this point in time. Take advantage of the bear market and look at condos for sale in Boston – it’s a safe bet that will pay off in the long term.
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