Today I came across an article online from the Boston.com entitled “Suddenly, area’s housing market favors the buyers“. This article was very interesting for several reasons. Firstly it seems to indicate that several real estate markets are starting to collapse, as I’ve been predicting for a while now. Also, although the article states many reasons for the decline in real estate property prices, I personally believe that the main contributor is the increase in interest rates. This is good because it makes it much easier to calculate approximately how much the real estate market should fall.
In any case, the good news for real estate investors is that there will be profitable cash flow rental properties available in the market once again. So start preparing your finances to be able to capitalize on it.
Some interests highlights and exerts from the article:
- In Jamaica Plain, a $70,000 price cut (15% of the total purchase price) for a house on the market for about a month generated only four people for an open house (two of which were the neighbors).
- “‘My seller is willing to consider a lower price’, said the broker, Anne Connolly, ‘but there’s no buyers to deal with.'”
- One Remax broker said that she is still selling houses, but at prices 5-to-10 percent lower than what comparable homes sold for in spring.
- “the number of condominiums listed for sale is up 50 percent from a year ago, while the number of price cuts has more than doubled“
- “Recently, after viewing a home in Norwell, listed at $645,000, Brown was told as he walked out, ‘We’ll take $535,000.’“
These are all very telling snippets of information from this article! All six reveal just how the market is truly doing. Again, as I mentioned before, this should be great news for real estate investors. Money is made in low markets, not high markets, so prepare yourself because the market is about to get very interesting in the near future!