2018 April Market Update
The Spring Market is finally starting to pick up! As during the winter, inventory in local markets remains tight, especially among more affordable homes. While rising interest rates are a concern for home buyers, a tight labor market, growing economy, and recent tax cut all make it easier for many Americans to purchase a home. As a result, many lenders have begun loosening their lending restrictions, although to what extent they do so remains to be seen.
Regarding local markets, the first quarter was relatively quiet, as sellers waited until the busier spring and summer months to list their homes. The number of home sales was down between 10% and 25% in each of our target communities (Newton, Needham, Brookline, and Cambridge) compared to Q1 of last year. Average selling prices, on the other hand, continued to increase in the first quarter of 2018 across all property types in all four of the communities. Average single-family home prices rose 8% in Newton and 15% in Needham compared to the first quarter of last year. Average Condominium prices in Brookline and Cambridge rose 17% and 43% respectively.
Heading into the busy home-buying season, low inventory levels and rising selling prices make the market favorable to sellers. Historically high housing prices and provisions in the new tax bill that reduce the incentives for homeownership, however, create an uncertain market, specifically for sellers of high-end properties. While we expect expensive homes to be harder to sell this summer, how one positions his or her property to buyers makes all the difference. As a professional architect and experienced broker, I have expertise in helping Boston-Area clients position their high-end properties for sale. If you have any inquiries about buying or selling property, local market dynamics in general, or about how the new tax law may affect the value of your home, please reach out to me at [email protected]