It’s always so easy to look back (we all love “Monday morning quarterbacking”) but looking forward can be tricky. At Ellen and Janis Real Estate, we closely monitor real estate sales in Jamaica Plain, Roslindale, West Roxbury and throughout Greater Boston. While the new year has just begun, we are encouraged by recent trends and predictions. Most of the news about real estate is optimistic; economists predict that the housing market will begin its slow recovery from the last few years. As Freddie Mac’s, Chief Economist, Frank E. Nothaft noted,
-Low mortgage rates will support a gradual housing pick-up in 2012
-30 year fixed-rate mortgages will stay below 5% through 2012
-Home buyer affordability will support home sales, thus sales will increase by about 2%-4% in 2012
As the chart above shows, low interest rates and lower home prices have increased homebuyer affordability. In other words, due to lower interest rates, you can now buy a higher priced home that might have been out of your range a few years ago. This is great news if you are a first time home buyer or if you are trading up to a home larger than the one you currently own.
The chart above shows home sales pace in 2011 was similar to 2010, but in 2012 sales are projected to increase at 2% to 4% above 2011 levels. In other words, (if sale prices do start to increase) the affordability mentioned above will decrease as the year goes on because the same house, even with low interest rates, will start to inch up in price.
Based on this outlook, it’s a good time to buy sooner rater than later. Interest rates are historically low, and you will be able to get more home for your money. This also means that it’s a good time to sell as buyers feel more confident about the market. Please contact us if you have any questions about this report or the real estate market in general.
Here’s to a robust 2012 real estate market!
Ellen and Janis
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