4 Predictions for the Boston Luxury Real Estate Market this FallAugust 20, 2011
Does anyone dare to predict what will happen this fall? We have been on a financially shaky roller coaster for so long and, considering the recent stock market plunge, it is a nightmare to start speculating any kind of a real estate forecast. But it’s important to try and see things logically - connecting the dots by looking at historical real estate patterns in a down economy. Here are my four predictions for the Boston luxury real estate market this fall:
1. Prices in certain distressed Mass markets will continue to decline, due to the slow pace of local economic recovery.
2. Foreclosed properties will increase in value as more investors are coming into the playing field. The Miami market is a good example of prices heating up - rental and sale properties.
3. Interest rates may go up as government pulls out of the mortgage industry and relinquishes control to the private sector. Some pressure to keep the interest rates low to stimulate the economy will play a role in the short term, but we will eventually see a significant increase in interest rates: Jumbo and conforming. Again, this is pure speculation and it all depends on the overall economy and the financial market, which at this point is anyone’s guess.
4. Most importantly – prices will increase in strong areas that were not hit very hard by the economic downturn. The best Boston neighborhoods are already experiencing this price increase. Based on recent Quarter 2 sales, the South End and Back Bay markets are on fire! Demand is also high in South Boston, the Seaport and Fenway – and high demand means higher asking prices in the best Boston neighborhoods.
There are many good reasons to delve into the marketplace and start looking at properties for sale in Boston. Browse my current listings to see which luxury homes are available now.
Have a question about buying property this fall? Don’t hesitate to ask about more listings that are not yet on the market.