A Primer for Buyers and Sellers...Spring 2013 North Shore Edition

A Primer for Buyers and Sellers...Spring 2013 North Shore Edition

This is a quick guide for residential real estate participants...both buyers and sellers...

Buyers

What?...

If you are planning to purchase a home on the North Shore in the under $1.5  million price category, you better be prepared to act quickly.  Inventories of homes for sale in this price range are extremely limited.  The specific “sweet spots” in each village vary a bit, but the level of demand is strong everywhere. Those new listings that are in move-in condition and are priced at competitive market levels are getting a great deal of attention.  Expect lots of competition and the possibility of a multiple offer situation.  Also, if you want to win that multiple offer scenario, be prepared to possibly pay over the asking price.

For buyers of homes in higher price points, we are starting to see the same factors beginning to move into place.

Why?...

You may have heard this before, but this is genuinely a once in a lifetime opportunity for buyers.  The ability to get a mortgage, even a jumbo mortgage,  that will carry forward for the next 7, 10, 15 or even 30 years at a rate of 4% or even lower is an opportunity that has not and probably will never again in the future, present itself.  The implications for your financial future is startling.  Couple this with the reduction in prices from levels of a few years ago and you have an unbeatable situation.  

There is a general recognition among buyers that this confluence of circumstances will not last forever....or perhaps, even much longer.

photo courtesy of  “Caveman Chuck” Coker via Flickr

Sellers

What?

The buyers on the North Shore are out there in force.  This is something that we really couldn’t confidently say prior to this spring.  There is a lot of competition for attractive listings and buyers are recognizing that they need to seize that opportunity.  Prices have clearly bottomed out and are showing some level of improvement.  Will prices continue to improve?  It’s impossible to say.  Remember, time equals risk.  If you have postponed selling for the past several years,  the current market represents “a bird in the hand”.

Why?...

Sellers are also the benefactors of current low mortgage rates.  When rates begin to rise, how will it effect buyers’ demand and home prices?  No way to know.  While the trend is clearly up, is this a false start or the real thing?  There are a variety of external factors which could have an adverse effect on home prices down the road.  One sure thing is that there is currently strong buyer demand.  If you’re thinking about waiting a year or two, remember that the only certainty is what is currently happening.  



If you have any questions about what is really happening in the North Shore real estate market, please get in touch.