For Buyers, the Marathon Continues

The beginning of 2021 started with a boom in real estate activity. Mortgage lenders dropped their interest rates, an encouraging sign for buyers in the market for a new home. On the other hand, bidding wars, all-cash offers, and a shortage in supply led to a hot market in favor of sellers who couldn’t get rid of their properties fast enough. Eagerness among buyers was especially seen during the spring and summer months when the previous stay-at-home mandates were lifted, in-person open houses quickly picked back up. But with many homes going for well above their listing prices, confidence among home seekers started to wane, leaving many to wonder if they were ever going to achieve their goal of homeownership.

In our Semi-Annual report, we anticipated a continued stream of inventory to the market through the fall months. As predicted, activity remained steady in September and October, with sales figures reportedly between $860,000 and $2.2M for single-family and condominium properties, reflecting a still highly desired and profitable market for buyers and sellers in Boston, Cambridge, and Somerville. What else can buyers expect to see for the rest of the fall, early winter, and 2022?

Mortgage rates will rise again

This year, mortgage rates undoubtedly catered to buyers. Rates reached record lows in January 2021 before climbing and dropping once more. Market experts predict these figures will rise again towards the end of the year. Those still in the market for a new home will want to secure these low-interest rates while they last. Moreover, sellers not quite ready to list (and perhaps still looking for a new one) should look into refinancing as an option to pull equity out of their homes and reinvest this money into improvement projects that will bolster a sale in later months.

Buyers will see more options.

Inventory has started to climb. As such, potential buyers have more options to choose from, and sellers may see fewer offers than they would’ve in the spring and summer months. Though late fall and early winter tend to be slower for sale activity, this time of the year is typically more buyer-friendly. Homeowners who found themselves unable to sell during the height of the market may be willing to make concessions for hopeful homeowners still on the hunt. 

Home prices will climb, too

Some analysts also predict, after this season, home prices will climb again, and those who didn’t find a home this year might experience the same problems next year as well. But, as always, buyers should do their due diligence before purchasing. An expected increase in home prices shouldn’t mean sacrificing quality or location in the name of pricing. Continuing strong with the home search in the next few months, especially when mortgage rates are low and there’s more inventory to choose from, will go a long way to avoid this problem. 

If you’re a buyer looking for your next home, get in touch with a Senné Associate. Our team of residential experts stays up-to-date on local activity and can guide you to your next home. For more information, reach out to me at [email protected] to learn more about our services and how we can help you.