Bonds are Gone. Who will save real estate? The Federal Reserve has ended its landmark bond-buying program and to some that spells doom. To others its smells of relief. What comes from this is interest rates being impacted. Rates will go up. How fast or how quickly is up for argument. In a recent AP post by Martin Crutsinger reported about the "ending it's landmark bond-buying program and pointed to gains in the job market." I was struck today to learn that there is more homelessness in MA than in other states as reported by the Boston Globe. The third quarter of 2014 reported a slowing of the sales of homes, but the strength of the market will again be in the final quarter of the year. We will wait to see.
I am not an economist, just your Realtor®. I know that real estate has always been a premium investment, and it is today. As a financial tool, I know that real estate continues to outperform on a consistent basis any other form or choice, stocks, bonds, funds. I know that luxury real estate around the Boston area is historically a great investment that delivers more than just the money. There is something to be said of investing in history, place and space. Living near the cradle of this country and one of it's oldest settlements where the first Thanksgivings were celebrated and all the rich history. The Fed statement is setting the stage for the rates going up sometime next year.
When the interest rates go up, your purchase power diminishes. That is economics. Luxury homes are in a Buyer's market where choice is plenty. If you are looking for light, design, architecture and amenities then Shornecliffe is your choice. Already the best luxury value in all of Newton, it also is in one of the most historic areas of all Newton. Farlow Hill was once called Nonantum Hill back when Newton was called Cambridge. They got that all settled before we became Massachusetts and the United States. This property was once part of the Kenrick Farm where many fruits and plants were first cultivated in our country. MLS #: 71746470 114 Shornecliffe Road, Newton MA 02458. Real Estate doesn't need the Federal government to over see our transactions on the neighborhood level. The problem was and is at a much higher level where it takes the Federal government have to step in to clean up a mess made in the Finance and Banking world, not the world of Real Estate.
Comments(0)