Most of you are familiar with the basic economic principle of supply and demand. When the demand for a particular item is greater than the supply of that item, the price will surely rise.
This principle couldn’t be more true in the current Boston real estate market. The demand to buy a home is strong and getting stronger while the supply of inventory is well below historic norms.
Buyers are facing a very competitive market in which they are competing with multiple buyers for their dream homes. That is if they are even able to find a home they wish to purchase. With such a shortage of new and active listings, homes that are on the market are being snatched up quickly at top dollar!
In this market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction. Listing your house for sale now will allow you to capitalize on the shortage of homes for sale, which will translate into a better pricing situation.
Bottom Line: You as a potential seller, have a leg up! Consider listing your home.
Here’s March 2017’s Monthly Indicators report from the Greater Boston Association of Realtors® showing Boston real estate market trends.
March 2017 Greater Boston Real Estate Market Trends
The spring housing market got off to a strong start as sales of single-family homes and condominiums rose in March, following a mild winter, steady incoming job growth, and high buyer demand according to data issued today by the Greater Boston Association of REALTORS® (GBAR).
Sales of single-family detached homes saw a 5.6 percent increase in year-over-year sales in March, as 825 homes were sold compared to the 781 homes sold in March 2016. This is the fifth highest sales total on record for the month of March and is the highest sales total since the record 1,001 homes sold in March 2007. Likewise, sales of condos rose 7.1 percent from March 2016 to last month as 810 condos were sold compared to 756 the previous year. Last month’s condo sales were the fourth highest on record, and similar to the single-family sales, was the highest sales total since the record 950 condos sold in March 2007.
- March condo sales UP 7.1%
- Median prices UP 8.6% ($520,000)
- Active Listings DOWN -28.8% to 1,501
- Listings added to the market DOWN -7.5% over last year (1,436 from 1,553 in 2016)
- March single-family home sales UP 5.6%
- Median prices UP 17.5% ($555,000)
- Active Listings DOWN -36.0% to 2,296
- Listings added to the market DOWN -14.5% over last year (1,881 from 2,199 in 2016)
Interested In Specific Neighborhood / Area Real Estate Market Trend Data?
Take the first step towards becoming a serious home buyer
Early in the home buying process (before you look at homes) it is important to consult a lender to evaluate your credit profile, get a sense for your true budget, and talk about loan options.
A mortgage pre-approval is proof that a lender is willing to make you a loan. With a pre-approval letter, real estate agents and sellers know you are a serious home buyer.
How to get pre-approved:
1. Before seeking pre-approval, you must first obtain your credit score and credit history report to spot any errors or potential issues. Your credit score affects your ability to qualify for different types of loans and receive favorable interest rates. Lenders will often work with borrowers with a low or moderately low credit score and suggest ways to improve or correct credit problems before applying for a mortgage.
2. Once you have pulled your credit score and have made any necessary improvements, you will then complete a mortgage application by supplying your lender with documentation that demonstrates your financial history and reliability, employment and personal information.
3. Typically the pre-approval process can take two to four weeks. From the data you provided, your lender will not only confirm your ability to qualify for a mortgage, but approve a specific loan amount and give you a better idea of the interest rate you will be charged on the loan. They will also give you a realistic understanding of the costs associated with buying a home so there are no surprises or disappointments. (Determine the maximum and minimum amount you can qualify for so you have the flexibility if you find your dream).
4. You will then receive a written conditional commitment for an exact loan amount, allowing you to begin looking for homes at or below that price level.
Bottom Line: A mortgage pre-approval letter proves that you already have backing and the ability to go through with the sale, which makes you a much more attractive buyer to sellers.