It's that time of year where everyone makes their predictions about the coming year. I’m not any better at predicting the future than anyone else, but I do read and study the economic reports and compare their conclusions to my own analysis of local market conditions. Here’s where I come out on the North Shore housing market:
1. Many buyers chasing too few houses
With the improvements in the economy, job market and consumer confidence, home buyers have jumped off the fence and are ready to take advantage of historic low interest rates and high housing affordability.
But many sellers are still under water on their loans and can’t or won’t sell at a price below what they owe, causing an imbalance in supply and demand. Ultimately this will drive prices up and economists are forecasting an increase in median prices of around 3% in 2013.
2. Good houses will go fast
The result of #1 is that the houses that are in good condition and priced right, will literally fly off the market. On the North Shore the most active segments will be homes priced under $1,200,000, and especially around $600,000 to $800,000. Those houses will get multiple offers and will sell at or above list price in a matter of days. If you are a buyer in this price range, be prepared to make a strong offer right out of the box if you really want the house. And make sure you are pre-approved (not just pre-qualified) by your lender in advance. Your Realtor will counsel you as to how to improve your chances of winning the bidding war.
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