Should I buy Boston real estate in 2013?
For those of you who have been paying attention to the Boston real estate market you know that the market has rapidly shifted from a strong buyers market to a strong sellers market in just over a year. This has lead to a record number of multiple offer situations and a sharp increase in prices over the past 18 months.
So what is causing this increase in prices?
- Lack of inventory...especially in the Boston condo and multi family markets
- Record high rents in Boston which are pushing tenants into ownership at the same time as attracting more investors to the Boston housing market.
- Low interest rates which are very attractive to new buyers and investors and also are allowing homeowners to refi instead of putting their properties on the market keeping inventory low.
So whats the risk factors with this type of market?
- Interest rates rise lowering demand and prices
- Sellers (who have been hearing the good news) all jump into the market this spring shifting the market back to a buyers market and pushing prices down quickly
So, should you buy Boston real estate in 2013?
- If your looking to buy and hold the property for the long term then yes!
- If you are looking for a property that you can buy, hold and flip for a profit in the near future then ....buy with caution!
We hope you enjoy this post. We also recommend watching this great video about the history of the US housing market!