Boston Area Real Estate Market 10 Years From Now

It’s always amazing to look back and see how things used to be, but what about looking ahead 10 years from now and thinking about what the Boston area real estate market may be like?

There should be millions of new households nationwide which will help boost starter home and rental markets. Half of these new households will be minorities, and it all depends on their access to mortgage lending as to whether they rent or buy.

Looking ahead at the Boston area real estate market 10 years from now
What About Boston Area Real Estate in 10 Years?

Figuring out the Boston area real estate market in the future may be a challenge. Ten years from now it’s expected the number of households in their 30s nationwide will increase by 2.7 million, and many of these younger households will be minorities. By the time we reach 2025 minorities are expected to account for 36% of all households in the US, and 46% of households aged between 25 and 34.This means they will account for nearly half of first-time buyers.

Baby boomers will boost the number of households age 65 and over by 10.7 million. It’s expected a large number of these households will make modifications and improvements to their current homes to cope with the process of aging. However others will seek out new types of housing specially geared towards seniors.

Currently, minority households tend to have lower incomes than white households, and their demand for owner occupied housing will largely depend on the availability of mortgages designed to accommodate more limited resources.

It is believed that unless the mortgage market can accommodate this new generation of households it’s possible that fewer people will be able to own their own home 10 years from now. This could mean the current mortgage industry would end up with a much smaller pool of potential borrowers unless it adapts.

Rentals are booming at the moment. Since homeownership reached a peak in 2005, there have been 1 million new renters annually which is double the average rate seen at any time since the 60s.

Although homeownership rates dropped again in 2013, which means they have fallen for nearly a decade, it anticipated the growing economy will eventually lead to increased household incomes. This is a key driver in housing demand, and even though interest rates and home prices have increased recently the numbers still favor those looking to buy in the Boston area real estate market.

To stay abreast of news as it affects the Boston area real estate market, today, and into the future, follow us on Twitter, and be sure to Like us on Facebook!

Boston Area Real Estate Can Save Parents Money on College

Parents who are going to be sending their kids to college should consider some of the ways buying Boston area real estate could actually end up saving them money on those college costs.

Tuition plus room and board runs into the tens of thousands of dollars each year. Imagine what it will cost 5 or 10 years from now. Why not consider cutting down on that “room” portion you’re going to be paying anyway by looking at Boston area real estate as an investment?

Boston area real estate as an investment could save you thousands on college costs.Most students choose to live on campus for their first year or two, but after that they’re pretty much on their own when it comes to housing. Many college students today end up going to school for 5 or more years. Many students look to get a house together to save on housing costs.

Boston Area Real Estate as an Investment

Think about the great investment opportunity as parents to buy a condo or small house in the Boston area and rent it out to your student and some of his or her friends.

Most students are very picky about who they want to live with. They live with many people their first year or two in the dorms so they get a sense of how clean they are, how organized they are and things like that. They basically get a sneak preview of what it would be like to live with them without having to do any tenant screening. As a parent/investor, you would be able to leave the entire tenant screening process up to your student.

Nearly every student these days has guaranteed income in the form of their parents income or the federal government. When renting to students you know they will almost never lose their source of income. Just to be safe, you can always have their parents co-sign the lease too.

Even though students are only in school 9 months out of the year, most students understand they will need to sign a lease for 12 months. The only time you might have some trouble with turnover is in the summer months but during the school year you know you will get guaranteed income for 9 straight months every single year on your Boston area real estate investment.

Buying a second property or an investment property is always a risk. But when you have to pay up to $10,000 a year or more for your child’s housing costs anyway, why not put that money to good use? Students don’t expect much when it comes to amenities and repairs so you could save yourself a lot of the headache and heartache in that department as well.

Talk to your financial advisor or CPA about the benefits of offsetting college living expenses for your student before investing in Boston area real estate. Remember, your Boston area real estate will still be there working for you even after your student graduates.

For more on Boston area real estate trends and news, visit our Boston Real Estate section of articles under our Boston Real Estate Categories to the right.

To stay abreast of news as it affects the Boston area real estate and housing on a daily basis, follow us on Twitter, and be sure to Like us on Facebook!

Hidden Market For Boston Area Real Estate

When looking to sell any Boston area real estate, one typically turns to a broker to get their property listed in the MLS (Multiple Listing Service.) But some homes are actually bought and sold without ever being officially listed in the MLS. This word-of-mouth technique is gaining popularity among sellers who want to avoid the perils of a down market, and perhaps save a little on the selling commission. But if you’re considering selling your home, this might not be the best route.

The Boston Area Real Estate Hidden Market

Boston area real estate for sale but not listed in the MLS or advertised as being for sale is known as a pocket listing.Once used mostly by the rich and famous, a “pocket listing” means that a home is not listed on a multiple listing service but is instead marketed directly by the property’s real-estate agent or broker — it is in that agent’s “pocket” – so to speak. But many not-so-rich and not-so-famous homeowners also go the pocket-listing route. The seller and agent have more control over who knows the home is for sale, who can look at it and, thus, who may eventually buy it.

These off-market listings for Boston area real estate have always been around. People may want privacy during a divorce or after a death, for instance, or an executive may not want his company to know he’s thinking of moving. But this type of sale has become more prevalent these days, and some agents and brokers, us included, don’t think that’s good for buyers or sellers.

Boston area real estate for sale that isn’t available to the general public, only to a privileged few, is just not a smart way to go about selling a home. If privacy is the issue, there are plenty of rules in place to protect sellers who don’t want the entire neighborhood to know their home is on the market.

Another reason for a pocket listing is that a seller might be hesitant to list a home in a down market but would be willing to sell to the right buyer, for the right price or both.

When looking for Boston area real estate, you need an agent who has connections to all the other real estate agents and brokers who can find pocket listings. It’s practically impossible for a buyer to track down such properties that may be for sale. Sellers should keep that in mind!

Many sellers who choose a pocket listing don’t actually have their heart set on selling. They may not be motivated. In some cases, a seller who wants to try a pocket listing will be motivated later on and decide to move the property onto the MLS. Sellers of Boston area real estate who don’t want their property in the MLS need to understand they may be jeopardizing their ability to maximize their investment or of finding a buyer.

For more tips on selling your Boston area real estate, see our section on Boston Home Selling Tips to your right under Boston Real Estate Categories.

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Boston Area Real Estate News – June 2014

Boston Area Real Estate News - June 2014

In our Boston Area Real Estate News for June 2014:

Boston Area Mortgage Rates Continue to Slide

Boston area mortgage rates fell again last week for the fifth week in a rowBoston area mortgage rates continue to fall. Nationwide, for the fifth week in a row, 30-year fixed mortgage rates dropped and now are at an average 4.12 percent, according to a national survey. That was down from the previous week's average of 4.14 percent.

Despite an announcement by the Federal Reserve that it would begin to taper its stimulus, which brought the expectation that mortgage rates would increase gradually, rates have remained near all-time lows. The Fed has announced four declines in its monthly bond purchases since December because the economy appears to be steadily healing. But the Fed has no plans to raise its benchmark short-term rate from record lows.

According to Bankrate, a number of factors have played into rates remaining low, including slow overall growth in the U.S. economy. Without strong growth in investments, mortgage rates tend to stay low because they are related to yields on long-term government debt.

Warmer weather has yet to boost home buying as it normally does. Rising prices and higher interest rates beginning in mid-2013 have made homes less affordable for would-be buyers. At the same time, a limited supply of homes is available to buy. New construction has focused increasingly on rental apartments, instead of single-family homes.

Fed Chair Janet Yellen has told Congress that the economy is improving but noted that the job market remains "far from satisfactory" and that inflation is still below the Fed's target rate. She said she expects the Fed's near-zero target for short-term rates to remain appropriate for a "considerable time" after the bond purchases end.

Stay plugged in here with our website and we'll keep you up to date on the latest Boston area mortgage rates, and news that affects those rates.

 

Pending Home Sales Rise in April

The National Association of Realtors said this past week that its seasonally adjusted pending home sales index rose 0.4 percent to 97.8 last month. The index remains 9.2 percent below its level a year ago.

More people signed contracts to purchase homes in April than the prior month. But the pace of buying is still weaker than last year, as higher prices and relatively tight supplies have limited sales.

Pending sales are a barometer of future purchases. A one to two month lag usually exists between a signed contract and a completed sale. The index indicates that home buying has barely increased in May.

Would-be buyers have gotten some help in recent weeks from falling mortgage rates that we just talked about in our first story. Average rates for 30-year, fixed mortgages declined for the fifth straight week to 4.12 percent.

Still, rates remain above their lows of 3.51 percent a year ago. The rising rates in the second half of 2013 and higher home prices appear to have reduced the pool of potential homebuyers.

The Realtors group said last week that sales rose 1.3 percent in April from March to a seasonally adjusted annual rate of 4.65 million. Purchases of homes over the past 12 months have dropped 6.8 percent.

 

5 Best Things to Buy in June

Tools are one of the best things to buy in the month of JuneShifting gears a bit away from "all things related to Boston area real estate", we thought we'd bring you a little buying advice in something besides Boston area real estate, and give you some tips on some other things you might find a good deal on in June.

Tools: Father's Day is June 15th, and retailers are discounting prices on tools and other home improvement equipment. Even if you're not buying tools for Dad, you may want to assess your own supply, since tools rarely go on sale. Check out coupons and newspaper ads for home improvement stores to compare prices.

Designer Clothes: If you're in the market for some hip summer clothes, June is an excellent month to hit the sales racks. All the big fashion houses are making way for their fall collection, so now is a great time to scoop up those latest trends you've been eyeing.

Gym Memberships and Equipment: Anyone working on their beach body, or those simply trying to maintain a healthy one, will benefit from slashed prices on gym memberships, fitness apparel and workout equipment in June. With new year's resolutions long forgotten and more people getting outdoors to take advantage of the nice weather, there's less of a demand for indoor gym equipment and gym memberships. Lack of demand equals a decrease in prices.

Grills and Grilling Supplies: If you delayed buying a new grill for the summer, June and July are the best months for deals on grills. Also shop for grilling supplies, including utensils and grill baskets.

Dishes: Due in large part to June being such a popular month for weddings, dishware companies offer discounts on their products to try to win spots on registries. That's good news for everyone in need of new place settings, soon-to-be-married or not. Expect discounts to start around 25 percent off and to go as high as half off, or more.

See you next month for another issue of our Boston area real estate newsletter!

 

Boston Area Real Estate Trends in 2014

Boston area real estate is now fully into quarter number two, and we’re still curious to see where 2014 is headed.

In 2013, Boston area real estate was up, along with most markets across the U.S. Now that the first quarter of 2014 is in the books, Boston area real estate continues to improve, although not at the pace we saw in 2013, but we have a lot of real estate sales months to go before we can say that 2014 was better or worse than 2013.

Brock Maclean, EVP of Homes.com takes a look at housing for 2014, offering his thoughts and insight on the housing recovery, home affordability, and mortgage rates…

If you’re in the market for Boston area real estate, contact us at Buyer’s Choice Realty. We can assist you in finding the right Boston area real estate for your budget and needs, while at the same time, offering you exclusive buyer representation. This means when shopping for Boston area real estate, you will have professional representation looking out for your best interest (not the seller’s), while not costing you any more than not having someone on your side of the transaction. Why would you buy any other way? Buyer’s Choice Realty has saved hundreds of buyers millions of dollars on their real estate purchase.  Contact us for assistance in buying any Boston area real estate.

To stay abreast of news as it affects the Boston area real estate and housing on a daily basis, follow us on Twitter, and be sure to Like us on Facebook!