As you may recall, 2015 started out hot, then hit a deep freeze buried under record levels of snow, which extended the spring market into summer more than usual. Since then, the market is beginning to become more balanced, with overpriced properties lingering on the market and experiencing rounds of price drops before going under agreement.
Recently I've seen a lot in the media that make it seem home ownership is out of reach for the average family, so I took a hard look at the most recent stats, and I'm happy to report that the sky isn't falling. Yes, prices have gone up, but according to the National Association of Realtors (NAR), existing home prices have risen 3.2% in the Northeast overall compared to last year. Placing these numbers in perspective, the increase during the same time in the US overall is 6.3%, with increases of 5.3% in the Midwest, 6.3% in the South, and 8.3% in the West! And while supply has remained low, again, we're no where near the scarce level of inventory of 2013.
Locally, the latest numbers from the Greater Boston Association of Realtors (GBAR) show a 14.1% increase in median sales prices for all properties in Bedford, with sellers receiving 97.3% of their original list price, a 1.6% decrease from 2014. So while the trajectory of home prices is certainly rising, it's at a more moderate, steady climb. And the key indicator to watch is the mortgage rates, which are predicted to rise slightly throughout 2016 based on Freddie Mac's projections. Even at current home prices, your mortgage rate is what truly determines your monthly payments, with even a slight increase resulting in additional thousands of dollars spent over the life of your loan.
So, there's a place for both buyers and sellers to succeed as we wrap up 2015 and head into 2016 and I invite you to take advantage of the skill and experience of the Suzanne & Company team to get the best possible results for you and your family to make it a truly happy new year! Want to learn more - contact our team today!