A Note from Amy
As we move through the first quarter of the year, the real estate market continues to be a topic of great interest for both current homeowners and prospective buyers.
Over the past few years, the rate of home price appreciation has been well above the historical trend line of 4%. This can be attributed to a variety of factors such as low mortgage rates, increased demand for housing, and limited inventory. While there is a projected dip in home prices nationally in 2023, the rate of appreciation is still expected to remain above the historical trend line.
Homes in the metro-west area of Boston have experienced significantly higher rates of appreciation than the national average over the past few years due to a variety of factors, most importantly a shift to remote working.
Despite a projected dip in home prices nationally in 2023, the metro west area is still seeing an extremely active real estate market due to the low levels of inventory. We're commonly seeing multiple bid situations reminiscent of the past few years, as buyers compete for limited available properties. This high demand for homes is expected to continue, which could aid in keeping local home sale prices steady in 2023.
This means that homeowners are still in a tremendous equity position and motivated sellers can still capitalize on this historically high rate of appreciation by selling their homes for a profit or leveraging their equity for other financial purposes.
While interest rates are higher than they were a few years ago, they are still competitive from a historical perspective, with the average for the past 30 years being 5.97%. As a result, many buyers are recognizing that they still have the opportunity to lock in relatively low mortgage rates and are re-entering the market. This increased demand, combined with limited inventory, is leading to increased competition among buyers.
This has prompted some buyers to put their home buying plans on hold, but waiting to make a purchase could mean their next home will cost more as home prices continue to appreciate & interest rates rise.
As always, Amy Balewicz Homes wants to be your first resource for all things real estate! If you have any questions about the local real estate market please reach out!
Engaging with our community and fostering new connections is extremely important to us and we would love to be a local real estate resource for you. We are here to help and serve!
~Amy
