Market Conditions in Boston>Question Details

Jamie, Other/Just Looking in Boston, MA

Are we expecting a sharp double digit annual bounce after the market bottoms out, or long slow, steady growth?

Asked by Jamie, Boston, MA Wed Dec 17, 2008

Specifically wondering whether tighter financial regulations around lending will prevent a mass rush to buy up "undervalued" property.

Help the community by answering this question:

Answers

7
Hello Jamie- Definitely not a double digit spike/ appreciation after the bottom/ leveling out. Most experts say that it could be 5 more years before the nation -on average- will see ANY noticeable appreciation. Maybe around Boston it'll be sooner, maybe mid 2010 or so it will level and slowly show some gains. But I'd say 2%-5% per year. Of course, if I knew for sure I'd be making millions for some real estate investment trust, etc.
Also, as I'm in the mortgage biz and I talk with RE investors almost everyday and peruse all the latest lender guidelines, it is MUCH harder to get a loan on an investment property than it was even 6-8 months ago. And if you can get one, it will cost you plenty- even with a conventional lender. That being said, about half of the RE investment deals that might look good on the surface do not look feasible after you consider all the financing and closing costs these days.
If you need any specific help or answers, feel free to look me up. Thanks, and good luck,
Ken L.
1 vote Thank Flag Link Fri Dec 19, 2008
Hi Jamie,

Jamie,

I can't speculate on what is to come for Boston Market in the next 5-10 years, though I would have to say with all the National negative media surrounding us we need to be optimistic as Broker, Buyers, and Sellers. Today in Boston, prices have dropped and many sellers are negotiating to get out of possibly bad mortgages etc. Though people are still buying, creditable people are still buying and yes!!!!, lenders are still lending with certain qualifications of course. Luckily we live in Boston and life really isn't that bad. I would have to say take advantage of this market if your in good standing as a long term investment.

Right now were learning from our mistakes, some folks are paying for it and others are reaping the benefits. The question is were do you fit???

If you need any assistance in your search for a condo in the Boston market, check us out! http://www.condoDomain.com

Thomas
Web Reference: http://www.CondoDomain.com
0 votes Thank Flag Link Thu Dec 18, 2008
I don't think there will be a "mass rush to buy" a bad investment. Good Luck
0 votes Thank Flag Link Wed Dec 17, 2008
Although I don't agree with Mr. Bowen's way of wording the answer...I do agree that "Who knows what's going to happen." Right now it's anybody's guess.
0 votes Thank Flag Link Wed Dec 17, 2008
I am Carnac The Magnificent! The proper question is here in this hermetically sealed envelope (Pretend that I am holding a hermetically sealed envelope up to my giant turban).

I have three answers to the proper question. The answers are:

1. God

2. SpongeBob SquarePants

3. Father Time

The proper question is (Pretend I am tearing off the end of the envelope and then blowing into said envolope in order to remove the proper question):

"Who the hell knows what the real estate market is going to do in the next two to three years?"
Web Reference: http://www.bowenboston.com
0 votes Thank Flag Link Wed Dec 17, 2008
It is very dependent on location, especially in provincial Boston. I believe for the most part, once some of the inventory is cleaned up, we will see slow, steady growth for a time. My guess would 2% a year in my market (Jamaica Plain).
0 votes Thank Flag Link Wed Dec 17, 2008
Jamie,

Just like in the stock market, greed will eventually take over. The buyers and investors included who have had their hands tied financially as well as waiting for the "bottom" will start buying property. That may lead to an increase in competition for the best priced/positioned properties. Since there is such a glut of homes on the market this may be a good thing. But not necessarily for the buyer, which is why I've been saying now is a great time to buy if you have to or really want to.

If a buyer waits too long and faces competition for the house they want, they may end up paying more and giving up important contingencies in order to make their deal work. Right back where we were in 2005.

I do hope though that we will see a slow increase in value. If you look at 2000 to 2008 and factor out 2005-2006, we have seen a slow, steady, predictable and sustainable pattern of appreciation. As inventories start to get back in line, and lending improves under tighter guidelines we'll see happy buyers and sellers for a change. The last 4 years we've either had happy sellers or happy buyers. Of course if you are a traditional home buyer who occupies or buys a second home, or an investor looking to take advantage of this market or the next one will determine how you see the glass.

That may not answer your question, and you'll no doubt see a long list of responses. Some of which will be from the doomsayers who will never be happy.
Web Reference: http://www.JimMellen.com
0 votes Thank Flag Link Wed Dec 17, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer